Berkshire Hathaway, the multinational conglomerate holding company headed by Warren Buffett, is expected to report a significant jump in quarterly profits. The boost is attributed to improvements in the economy, which have led to increased gains in insurance and other businesses. The company’s insurance businesses, which include Geico and several large reinsurance groups, are predicted to show strong results due to fewer catastrophic losses in the first quarter of 2015.
Berkshire’s other businesses, including railroads, utilities, and energy companies, are also expected to benefit from the economic upturn. The company’s railroad business, BNSF, is predicted to report higher earnings due to increased freight volumes. The energy businesses are also expected to show strong results, despite the recent slump in oil prices.
Berkshire Hathaway’s Class A shares have risen by around 8.7% this year, outperforming the Standard & Poor’s 500 index, which has gained 2.4%. The company’s annual meeting, which typically draws tens of thousands of shareholders, is scheduled to take place in Omaha, Nebraska, on 2 May 2015. Shareholders are eagerly awaiting the event, known as “Woodstock for Capitalists,” where Buffett and his business partner, Charlie Munger, will answer questions for several hours.
Go to source article: http://www.reuters.com/article/2015/04/30/us-berkshire-buffett-idUSKBN0NL1BJ20150430