The first-quarter earnings of Warren Buffet's company, Berkshire, fell as the US economy slowed.
The company's net earnings came in at $5.46 billion, down from $11.71 billion in the year-ago period.
The operating earnings of the conglomerate, which include profits from insurance, railroads and utilities, were flat at $7.06 billion. The company's earnings from the insurance segment dropped dramatically in the most recent quarter, from $764 million in the year-ago period to $47 million.
The manufacturing, service and retailing segment of the company saw its earnings increase by 15.5% in the quarter.
The US economy contracted in the first quarter for the first time since the start of the Covid-19 Pandemic.
The company took a big hit from its investments as the market declined. Shareholders are always advised to ignore the quarterly investment fluctuations.
The amount of investment gains in any given quarter is meaningless and can be misleading to investors who have little or no knowledge of accounting rules.
The company's stock purchases slowed down to $3.2 billion from $ 6.9 billion in the fourth quarter, as it was more active with dealmaking last quarter than it had been for a long time.
The company said in March that it had agreed to buy Alleghany for $11.6 billion. A position in HP Inc is now valued at more than $4.5 billion, as well as a stake in oil giant Occidental Petroleum that is now worth more than $7 billion.
This year has been great for the investment in Berkshire. The conglomerate's Class A stock is up more than 7% for the year, which is better than the S&P 500's decline. As of the end of the first quarter, the company had a huge cash pile of $106 billion, which was down from the fourth quarter.
The company's latest quarterly figures come as thousands of shareholders flock to Omaha, Nebraska for the annual meeting, where Warren Buffet and Vice Chairman Charlie Munger will take questions from shareholders. The exclusive livestream will be hosted by CNBC on Saturday at 9:45 a.m. There is a time and place for this.
Given the recent inflationary pressures and rising rates, shareholders want the pair to discuss their market outlook, as well as more clarity on the company's succession plan.
You can find all of the CNBC coverage of the annual meeting here.
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