Thumps up to Apple while Crypto was knocked down – Key Highlights of the Berkshire AGM


Berkshire Hathaway Inc. (NYSE: BRK.A) is a multi-national conglomerate company which includes businesses like Insurance, such as GEICO, Berkshire Hathaway Primary Group, General Re Corporation and Berkshire Hathaway Reinsurance Group; and Burlington Northern Santa Fe, LLC, which operates railroad system.

Berkshire released its quarterly earnings lately, and the company posted a net loss because of a new accounting rule that requires them to incorporate unrealized gains and losses from stock investments into net income. But operating income increased 49 percent as the insurance units posted a profit this quarter. That’s a good sign for those businesses after a rough 2017 wherein natural disasters led to the first annual underwriting loss in more than a decade.

On the other hand, the group held its Annual General Meeting (AGM) in Omaha, Nebraska, and the main takeaways from this year’s AGM touched upon succession plan, stake in Wells Fargo and Apple, and trade with China.

Talking about planning succession: Warren Buffett has built Berkshire Hathaway into a behemoth in his five decades running the company, but he’s now 87 years’ old and Berkshire watchers are always searching for hints about who might be next in line to run a conglomerate that now includes insurers, electric utility companies, and even a railroad entity. News in January when Buffett named Gregory Abel and Ajit Jain as vice chairmen in a ‘movement towards succession’, the shareholders got a bit of a hint about Buffett’s approach on the matter. The company has also named many women during the process of management changes over the years to promote gender equality, which of course is a different topic touched during the AGM.

On Wells Fargo and Apple: The value of Berkshire’s stake in Wells Fargo fell to $25.2 billion in the first quarter from $29.3 billion as of December 31, reflecting a 14% drop in the bank’s stock during the period. In February, the scandal-ridden lender was hit with a Federal Reserve asset growth ban until it proved it is addressing the outlined shortcomings. Wells Fargo had agreed to pay $480m to settle a class-action lawsuit from the US bank’s shareholders over its fake account scandal. On the other hand, the group has increased its stake in Apple and Buffet stated that Apple’s move of repurchasing shares is a positive one and this will help Berkshire from investment standpoint. Meanwhile, Cryptocurrencies were stated to come to bad endings, which has discouraged many as lately we saw Goldman Sachs supporting the continual momentum in Bitcoin.

Opinions on trade: Mr. Buffett said he strongly believes that the two nations, United States and China have a lot of common interests to look at, and despite the tensions the two economic powerhouses can gain a lot by working together.

The meeting went on to announce the big deal of Precision Castparts, last mega acquisition which costed $32 Billion.

All in all, shareholders of the company along with the analysts did not repent attending the AGM as opposed to what was lately witnessed during Tesla’s earnings call.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

Leave a Reply