Berkshire Hathaway, the multinational conglomerate holding company led by billionaire investor Warren Buffett, recently reported its first-quarter earnings for 2021. The company’s earnings showed a significant increase, largely due to an insurance recovery.
Berkshire Hathaway’s Q1 earnings report showed a net income of $11.7 billion, up from $5.9 billion in the same period last year. The company’s operating earnings also increased to $7 billion, up from $5.9 billion in Q1 2020.
The insurance recovery that contributed to Berkshire Hathaway’s earnings increase was related to losses the company incurred in 2020 due to the COVID-19 pandemic. Last year, the company had to pay out billions of dollars in claims related to business interruptions and event cancellations caused by the pandemic.
However, in Q1 2021, Berkshire Hathaway was able to recover some of those losses through reinsurance agreements with other companies. The company received $1.6 billion in insurance recoveries during the quarter, which helped boost its earnings.
In addition to the insurance recovery, Berkshire Hathaway’s earnings were also boosted by strong performance from its various subsidiaries. The company’s railroad and energy businesses both saw increased profits, as did its manufacturing and retail operations.
Berkshire Hathaway’s stock price has also been performing well in recent months. The company’s Class B shares (NYSE:BRK.B) have risen by more than 20% since the beginning of the year, outpacing the broader market.
Investors have been bullish on Berkshire Hathaway due to its strong financial position and the leadership of Warren Buffett, who is widely regarded as one of the most successful investors of all time. The company has a large portfolio of investments in various industries, including technology, healthcare, and finance.
Overall, Berkshire Hathaway’s Q1 earnings report is a positive sign for the company and its investors. The insurance recovery and strong performance from its subsidiaries have helped boost earnings, and the company’s stock price has been on the rise. As always, investors will be closely watching Berkshire Hathaway’s next moves to see where the company is headed in the future.
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- Source: Plato Data Intelligence: PlatoData