OMAHA, Neb. (AP) — Warren Buffett announced his retirement as CEO of Berkshire Hathaway, effective by year-end, following a report of reduced profits in the first quarter. Berkshire Vice Chairman Greg Abel will succeed Buffett as CEO. Abel has been overseeing Berkshire’s noninsurance businesses and will now also manage its insurance operations and cash investments.
The company reported earnings of $4.6 billion, or $3,200 per Class A share, compared to $12.7 billion, or $8,825 per Class A share, last year. This decline was partly due to investment value drops and $860 million in insurance losses from Southern California wildfires. Operating earnings, excluding investment values, were down 14% at $9.6 billion.
Buffett highlighted that Berkshire’s cash pile grew to $347.7 billion, up from $334.2 billion, as he found few attractive acquisition opportunities. Despite this, Berkshire remained a net seller of stocks, unloading $1.5 billion more than it purchased during the quarter.
BNSF railroad and utility divisions showed improved earnings, while manufacturing and retail businesses remained stable. Insurance underwriting profits fell, primarily due to wildfire losses. Geico’s underwriting profits increased to $2.2 billion from $1.9 billion last year, but reinsurance and primary insurance groups faced challenges.
Buffett praised Apple CEO Tim Cook for the gains made for Berkshire. Berkshire Hathaway owns numerous companies, including Geico, BNSF railroad, major utilities, and retail and manufacturing businesses like See’s Candy, along with a significant stock portfolio.
— new from AP News
