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- Manlobbi
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
No. of Recommendations: 1
No. of Recommendations: 0
Operating earnings down about 14% YOY? Interesting.
No. of Recommendations: 11
From a quick scan:
Geico continues good run of profitability.
Other insurance u/w down due to wildfire losses. A reminder that Berkshire 2024 numbers are not a good base for valuing the insurance companies.
BNSF profits up despite tariffs probably due to efficiency benefits from previously reported operational changes. Big positive.
BHE profits up due to prior year wildfires losses.
MSR doing as expected, mixed bag.
Net seller of equities but not significant.
Didn’t check but no share buybacks I image.
Unrealised loss on investment portfolio gives media something to write about.
Look forward to insights that tell anything about the US economy.
Share price high, relative to intrinsic value snap shot before the report. This mixed bag and nothing really has changed = business as usual.
Unless there are announcements at the meeting.
Long term a fine company that can grow at 10% a year.
Looking forward to your insights…
No. of Recommendations: 1
Currency losses of $713 million vs a gain of $597 last year is a pretty big swing. This is from dollar weakness I suppose?
No. of Recommendations: 1
Swing in fx hedging for the Japanese investments had a negative effect on earnings.
BHE increased earnings unrelated to wildfire accruals which were nil in both Q1 25 and Q1 24.
Share buybacks ZERO. Not a single B share.
Quite positive for the two utilities rail and energy. Maybe nice assets in a recession. Although surely rail gets impacted eventually.
No. of Recommendations: 13
Currency losses of $713 million vs a gain of $597 last year is a pretty big swing. This is from dollar weakness I suppose?
It's usually the opposite: a weak dollar means that foreign earnings are worth MORE, in USD, so a weak dollar should boost earnings denominated in USD. In Berkshire's particular case, there is very little in the way of foreign earnings, so dollar strength or weakness usually has very little impact on earnings.
But in this particular case, your suggestion and EVBigMac's explanation are likely correct - the hedge put on Japanese yen, so as not to be exposed to yen fluctuations, has gone the wrong way recently, as the yen has strengthened against USD (with the yen up about 8% in Q1). This is of no real significance to Berkshire, as it also means that its Japanese investments have increased in value by the same amount, presuming that Berkshire's yen exposure was fully hedged. But these are counted in separate places, the hedge in currency gains/losses, and the five trading houses are counted as equity gains/losses. JPY:USD movements will affect these in opposite directions.
dtb
No. of Recommendations: 1
The fx loss doesnt really mean anything, i think? It’s 2.x% 30 year yen loan. Eqch quarter when Yen appreciate, of course it cost u more if you pay it off today. But you don’t pay it off till 30’years later. It’s like if I get a 30 yr mortgage for my house, i don’t book a pnl based on daily inflation expectations..
