Berkshire Hathaway’s cash reserves surged to a record $397 billion in the first quarter, driven by a net $8.1 billion in equity sales and strong performance from its insurance businesses. The Omaha. Nebraska-based conglomerate reported $1.7 billion in underwriting earnings, a 29% increase from a year ago, according to a regulatory filing.

CEO Transition and Share Repurchases

Greg Abel. Who became CEO in early 2025 after Warren Buffett’s retirement, resumed stock buybacks in the first quarter, spending $234.2 million to repurchase shares — this marked the first such activity in over a year. Abel and Buffett had previously stated the intrinsic value of Berkshire’s shares exceeded their market price, justifying the buybacks; However, Berkshire’s stock fell 5.9% year to date through Friday, outpacing broader market declines.

Buffett, who remains chairman, praised Abel during a shareholder meeting, saying he “does everything I did and then some.” The meeting, held in the same downtown arena as previous years, saw a noticeable drop in attendance compared to when Buffett and late vice-chairman Charlie Munger were present.

Insurance and Operating Earnings

Berkshire’s operating earnings totaled $11.35 billion for the first quarter, up nearly 18% from the previous year, the insurance segment’s performance was a key contributor, as units that had suffered losses due to the Los Angeles wildfires last year posted significant gains.

Abel emphasized his commitment to maintaining Berkshire’s structure and independence, stating the company would not break up and would continue to grow, but “We do not intend to be beholden to anyone,” he said in response to a question from Buffett during the shareholder meeting.

Buffett’s Reflections and Market Sentiment

Buffett expressed concern about a growing “gambling mentality” among investors during an interview with CNBC, warning about the risks of speculative behavior, he also reiterated his admiration for Apple, one of Berkshire’s most successful investments, and praised its outgoing CEO, Tim Cook.

Despite Abel’s efforts to stabilize the company’s direction, some investors remain skeptical about the leadership transition, while Berkshire’s shares have lagged behind broader market performance since Buffett announced his retirement, indicating lingering uncertainty about the firm’s future under new management.