Legendary investor, Warren Buffett, has a busy couple a days ahead of time as Berkshire Hathaway Inc. (NYSE:BRK.A) released earnings and prepares for the annual shareholder meeting this weekend. First, lets look at Berkshire’s earnings release. The company reported net income of$3.25 billion or $1,966 per share (Class A). Analysts polled were looking for a net income of $2,297.50 if you follow the Class A shares or $1.53 earnings per share if you follow Class B shares. Revenue wise, analysts wanted $39.154 billion.
If we look at last year’s quarter for Berkshire we saw $1.7 billion in losses due to the earthquake and tsunami in Japan which also gave Berkshire a drop of 58% in profits. The actual numbers that Berkshire posted during last year’s quarter was a net income of $1.5 billion or $917 per share (Class A) on revenue of $33.7 billion.
Turning to the Berkshire Hathaway annual meeting, investors will not only be listening to business operations but also any hint of Warren Buffett’s cancer condition and any possible successors. It’s worth noting that ValueWalk will have full coverage of the annual meeting throughout the weekend and will be updating you on all the latest information.
A big fear among Berkshire shareholders is that once Warren Buffett leaves, the firm won’t be the same. I believe this is not the case. I have confidence that Buffett will not only pick a great successor but he will also teach that individual the ins and outs. Not to mention, Berkshire has an impressive portfolio of investments which should help carry the company along without much aid to begin with.
Berkshire has a great following when it comes to shareholders and non-shareholders alike because of Warren Buffett’s legendary investing skills. Unfortunately, in recent years we have seen a bunch of critics start to criticize the investor over a few gaffs made around 2008.
The bottom line is that Berkshire Hathaway is a solid company as we saw with earnings today. The firm’s insurance division and derivatives were a huge source of success in the earnings report today. Luckily, there has not been a lot of devastating storms which would have cut into the firm’s earnings, not to mention change people’s lives.
Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) is a successful company with and without Mr. Buffett. I have confidence in his selection for his successor and hopefully we will get a sneak peak this weekend during the shareholder meeting. As a reminder, please check back for the latest news this weekend from the shareholders’ meeting.