Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

5/6/2013 (1 year ago)

Catholic Online (www.catholic.org)

'This earnings report is the tip of the iceberg,' officials say

Could the recession here in the U.S. finally be over? Warren Buffett's Berkshire Hathaway Inc. hit a new record as first-quarter profit jumped 51 percent on gains from equity-linked derivatives and insurance operations. Net income climbed to $4.89 billion, or $2,977 a share, from $3.25 billion, or $1,966, a year earlier.

Warren Buffet was confident, but cautious. 'It was a good quarter, it wasn't quite as good a quarter as it looks,' Buffett said at the company's annual meeting in Omaha.

Warren Buffet was confident, but cautious. "It was a good quarter, it wasn't quite as good a quarter as it looks," Buffett said at the company's annual meeting in Omaha.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

5/6/2013 (1 year ago)

Published in Business & Economics

Keywords: Warren Buffet, Berkshire Hathaway, increase, house buying, recession, recovery


LOS ANGELES, CA (Catholic Online) - The Omaha, Nebraska-based company declared that the gains grew to $49.1 billion from $47 billion three months earlier, overshadowing the previous record of $47.9 billion in the second quarter of 2011.

Improvements in the housing market have helped the U.S. economy rebound from the biggest slump since the Great Depression. Warren Buffett, as chairman and chief executive officer for more than 40 years, transformed the company through takeovers from a textile maker into a firm that hauls freight, generates electricity, sells insurance and manufactures building supplies from bricks to paint.

"This earnings report is the tip of the iceberg," Bill Smead, portfolio manager of the Smead Value Fund said. "Warren has organized the company around the rebirth of the United States economy over the next 10 years and this is the beginning of that rebirth."

Buffet was confident, but cautious. "It was a good quarter, it wasn't quite as good a quarter as it looks," Buffett said at the company's annual meeting in Omaha.

The equities portfolio was valued at $97.2 billion on March 31, up from $87.7 billion at the end of 2012 as American Express Co., Coca-Cola Co. (KO) and DirecTV rallied. Berkshire increased its stock bet in the category listed as "banks, insurance and finance" in the quarter, Buffett's firm said in a regulatory filing, without identifying companies.

Berkshire spent $1.41 billion on equities in the quarter after increasing the amount of funds overseen by deputy stock pickers Todd Combs and Ted Weschler, while selling $673 million, according to the filing. There were $1.81 billion in purchases of fixed maturity securities and $675 million in sales.

Data from the Commerce Department proved that U.S. gross domestic product climbed at a 2.5 percent annualized pace in the first quarter, driven by higher consumer spending and residential construction.
 
Berkshire Hathaway Reinsurance Group added $974 million before taxes, compared with a loss of $191 million a year earlier.

Berkshire cut some risks tied to a life deal with Swiss Re Ltd. in the first quarter, agreeing to pay the Zurich-based company to reduce the protection that Buffett's firm provides.

The 82-year-old Buffett has highlighted the prospects for the world's largest economy, where most of Berkshire's operations are based. The company has its "foot to the floor" and will probably set another record for capital spending this year after making a $9.8 billion outlay on plants and equipment in 2012, he wrote in his annual letter to shareholders.

---


Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for November 2014
Lonely people:
That all who suffer loneliness may experience the closeness of God and the support of others.
Mentors of seminarians and religious: That young seminarians and religious may have wise and well-formed mentors.



Comments


More Business & Economics

Is Apple about to hit $1 trillion? Not if Google has anything to say about it Watch

Image of While Apple dominates the smartphone market, some suspect that its heavy reliance on products will lead to its downfall to companies who offer more services and software.

By Catholic Online (NEWS CONSORTIUM)

Silicon Valley tech giant Apple may one day be worth more than a trillion. Just for a second think about how massive that is. LOS ANGELES, CA (Catholic Online) - The maker of mac computers, iPods, iPhones and more is already worth more than $670 billion, and has a $260 ... continue reading


Feet on the desk - more and more Americans simply don't want to work anymore Watch

Image of Pew Research says that 39 percent of 16 to 24-year-olds don't want to work, up a substantial amount from 29 percent in 2000.

By Catholic Online (NEWS CONSORTIUM)

Nearly four in 10 Americans, or 92 million, are not in the labor force. Many are unemployed for no fault of their own. Many others have simply stopped looking for work. Why? The reasons are complex. LOS ANGELES, CA (Catholic Online) - The largest group of people ... continue reading


REAL INCOME INEQUITY: 85 richest people now have as much money as poorest 3.5 billion Watch

Image of Billionaire investor Warren Buffett remarked more than three years ago that

By Catholic Online (NEWS CONSORTIUM)

The very rich and the very poor just grew further apart. According to Oxfam, the broadening chasm between wealth and poverty has grown so wide that the 85 richest billionaires on the planet, such as Carlos Slim, Bill Gates and Mark Zuckerberg now have as much ... continue reading


Jaded with politics? It's because America has become a plutocracy -- but Catholic Social Doctrine has the fix Watch

Image of It's money, not votes that really makes the difference in a plutocracy.

By Marshall Connolly, Catholic Online (NEWS CONSORTIUM)

As Americans head to the polls this election day, they are extraordinarily jaded. Fed up with campaigns, elections, and the lack of change and benefit to them as individuals, most Americans feel dissatisfied and angry. Notably, the solution to this problem will not be ... continue reading


SURVEY: Singapore best country to do business with, for ninth year in a row Watch

Image of The World Bank ranked Singapore tops for the ninth year in a row.

By Catholic Online (NEWS CONSORTIUM)

Conservative and strict - there are heavy penalties for littering, as well as being wildly prosperous, the feisty Asian nation of Singapore has been ranked as the single best nation to do business with, according to the World Bank. The bank ranked Singapore ... continue reading


Is it a sign of impending collapse? Financial savant Warren Buffett loses two billion in stock market Watch

Image of Warren Buffett recently lost $2 billion from investments in Coke and IBM, which have led some to believe that a stock market slowdown might be imminent.

By Catholic Online (NEWS CONSORTIUM)

Warren Buffett, the man known for focusing on long-term investment performance as apposed to making the quick buck, has lost $2 million in investments. LOS ANGELES, CA (Catholic Online) - Buffett owned Berkshire Hathaway investment house has large investments in ... continue reading


Christmas shopping in October? Apparently it's becoming a big deal Watch

Image of Shoppers are already out, despite the fact Halloween hasn't even arrived.

By Catholic Online (NEWS CONSORTIUM)

Shoppers are starting early with October 5 being declared by retailers as "Stock Up Saturday." Consumers are already Christmas shopping which means more of the revenue available to retailers will be harvested earlier in the shopping season. For retailers that choose to ... continue reading


List of Top 20 World Brands - Apple tops Google as world's leading brand for second time in row Watch

Image of The Apple Watch has enjoyed success in numerous fashion circles, featured on the cover of Vogue, among others.

By Catholic Online (NEWS CONSORTIUM)

Apple has topped Google as the world's most valuable brand for the second year in a row. The two companies are the only brands to be valued at more than $100 billion, according to the annual Best Global Brands report. LOS ANGELES, CA (Catholic Online) - ... continue reading


Here they come! China passes U.S. economy based on purchase power Watch

Image of Under President Obama's administration, China may surpass the U.S. economy.

By Catholic Online (NEWS CONSORTIUM)

The International Monetary Fund (IMF) has reported that China has overtaken the United States and is now the world's largest economy, at least based on purchasing power parity (PPP). LOS ANGELES, CA (Catholic Online) - The IMF said that by the end of 2014, China ... continue reading


Rosie the Riveter would cry: Record 55,553,000 women not participating in U.S. workforce Watch

Image of The strides made by women in the workplace sadly isn't reflected in recent job statistics.

By Catholic Online (NEWS CONSORTIUM)

The strides made by women in the workplace seems to have gone up in smoke across the United States. The determined visage of Rosie the Riveter during World War II to women taking the place of men in hard industry - declaring "We can do it!" would certainly shed ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Revelation 11:4-12
4 These are the two olive trees and the two lamps in ... Read More

Psalm, Psalms 144:1, 2, 9-10
1 [Of David] Blessed be Yahweh, my rock, who trains ... Read More

Gospel, Luke 20:27-40
27 Some Sadducees -- those who argue that there is no ... Read More

Saint of the Day

Saint of the Day for November 22nd, 2014 Image

St. Cecilia
November 22: In the fourth century appeared a Greek religious romance on the ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter