What Wall Street Hopes for From Warren Buffett's Berkshire Hathaway Earnings

Wall Street is already laying its bets on Berkshire Hathaway before the company releases its first-quarter earnings on May 2.

A CNBC report on Monday stated that UBS analyst Brian Meredith is strongly advocating for the company’s Class B shares, referring to what some call “Baby Berkshire” as a "secure refuge amid volatile market conditions." Although he maintained his earlier recommendation of buying these stocks, Meredith raised his 12-month price forecast up to $606 per share from $557.

This represents approximately a 14% increase from the previous day’s closing price of $530.96. Additionally, Meredith raised his first-quarter earning forecast to $4.89 per share from $4.81, largely due to better loss ratios at Geico, which remains among the key factors. Warren Buffett’s major holdings.

Berkshire's Class B shares have already risen by almost 18% this year in 2025. Despite Donald Trump returning to the White House and new tariffs being implemented, Meredith said Geico was capable of managing the repercussions.

"We anticipate that tariffs could boost claim expenses by approximately 3% to 4% at Geico; nonetheless, considering their present profit levels, they might manage these extra costs without increasing premiums and still remain within their targeted profit margins," Meredith stated.

Meredith is similarly monitoring any indications of how Berkshire intends to utilize its substantial $334 billion cash reserve, which has hit unprecedented heights for the firm. Additionally, according to forecasts from FactSet, analysts predict earnings per share of $4.72 with revenues totaling $90.8 billion for the first quarter.

Buffett's fortune swells as Berkshire Hathaway's shares soarhigher

At 94 years of age, Warren's wealth is growing along with Berkshire Hathaway’s share price. According to the Bloomberg billionaire index, his net worth has surged by $23.7 billion this year, reaching $166 billion.

This increase represents a 16.7% growth since the beginning of the year, mainly driven by the impressive performance of Berkshire’s Class B shares. According to recent data, the share price ended trading at $534.29, marking an uptick of 19% for the current year.

Nearly all of Warren's wealth is linked to Berkshire, making up approximately 99.5% of his total assets, a fact he has frequently highlighted in various public communications.

Despite a slight decline of $260 million, or 0.2%, during the latest trading session, Warren Buffett’s wealth remains secure. According to Berkshire Hathaway's documents from November 2024, he holds approximately 37.4% of the firm’s Class A shares, whereas his stake in Class B shares is negligible.

Warren's minimal non-Berkshire possessions have remained relatively stable for more than ten years. As mentioned in that well-known letter addressed to Representative Tim Huelskamp in 2011, and as detailed in filings from 2010 onwards, Warren stated that his other investment ventures pale in comparison to his primary stakes.

He once had stakes in Wells Fargo and US Bancorp, but those added up to less than 1% of his total fortune and still do today. Time hasn’t really helped those outside investments either.

Market fluctuations, dividend reinvestments, and asset sales have altered their values, yet they still stand as small specks when compared to his massive Berkshire holdings.

The overarching point is that his strategy hasn't required tweaking during the toughest economic times. His low-key methodology has seen him through inflation, stock market crashes, and economic downturns.

In summary, Warren's consistent approach has transformed his Berkshire investments into an unassailable stronghold amidst financial-market turmoil, reaffirming that he could very well be the most exceptional investor in recorded history.

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