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 September 2014
Mentally disabled:
That the mentally disabled may receive the love and help they need for a dignified life.
Service to the poor: That Christians, inspired by the Word of God, may serve the poor and suffering.



Comments


More Business & Economics

400 wealthiest Americans now worth cumulative $2.3 TRILLION Watch

Image of Facebook founder Mark Zuckerberg has finally cracked America's most wealthy top ten at tenth place.

By Catholic Online (NEWS CONSORTIUM)

The rich, indeed get richer -- America's wealthiest are worth more than ever before. The United States' top 400 billionaires are now worth a dazzling $2.3 trillion, according to the latest edition of the Forbes 400. LOS ANGELES, CA (Catholic Online) - It comes ... continue reading


Record debt coupled with slow growth point to economic crisis, Geneva Report says Watch

Image of The Geneva Report says the rapid rise of public sector debt in rich countries and private debt in emerging markets, especially China, may lead to0 fresh economic crisis.

By Catholic Online (NEWS CONSORTIUM)

Record debt and slowing economic growth suggest the global economy could be heading for another crisis, the 16th annual Geneva Report warns. Commissioned by the International Center for Monetary and Banking Studies, the report predicts interest rates across the ... continue reading


Walmart to enter banking world with low-cost checking accounts Watch

Image of Walmart has been eying financial services for some time now.

By Catholic Online (NEWS CONSORTIUM)

Walmart is making its biggest venture into the banking world after several failed attempts in the past. The nation's largest retailer is joining Green Dot, already known for its prepaid payment cards, to supply checking accounts to nearly everyone over 18 years ... continue reading


The Chinese are coming! E-commerce giant Alibaba cleans house with its initial public offering Watch

Image of Chinese e-commerce giant Alibaba has raised more than $21 billion with its IPO, with stocks priced at $68 per share, signaling a strong demand for the tech-giant.

By Catholic Online (NEWS CONSORTIUM)

The Chinese e-commerce giant Alibaba has made the largest U.S.-listed initial public offering (IPO) of all time, with stocks priced at $68 per share, signaling a strong demand. LOS ANGELES, CA (Catholic Online) - Only large investors, like hedge funds, can ... continue reading


Bottom of the Barrel - Thanks to business tax, the U.S. is Number 32 in the world Watch

Image of A competitive tax code is one that limits the taxation of businesses and investment. Since capital is mobile and businesses can choose where to invest, tax rates that are too high

By Catholic Online (NEWS CONSORTIUM)

A new international ranking shows that the U.S. tax burden on business is close to the worst in the industrialized world. So says the Wall Street Journal, the nation's leading journal on business. The White House and Sen. Charles Schumer (D., N.Y.) will attempt ... continue reading


Unemployment rate for black Americans at 11.4 percent, more than double the rate for whites Watch

Image of There remains a wide disparity in employment in the United States, in spite of efforts to close this broadening gap.

By Catholic Online - (NEWS CONSORTIUM)

There remains a wide disparity in employment in the United States, in spite of efforts to close this broadening gap. Figures show that while unemployment nationwide is 6.1 percent, the unemployment rate for black Americans at 11.4 percent. LOS ANGELES, CA ... continue reading


A record 92,269,000 Americans jobless for month of August Watch

Image of So - there you have it: Things are STILL tough all over.

By Catholic Online - (NEWS CONSORTIUM)

It never went away, come rain or come shine form the past hot summer months . Many Americans remain idle and without work. According to the Bureau of Labor Statistics, a record 92,269,000 Americans 16 years of age and older didn't participate in the labor force ... continue reading


We owe HOW MUCH? New report reveals U.S. government owes $6 trillion to foreign entities Watch

Image of Foreign interests, including nations and businesses, own more than $6 trillion of U.S. government debt.

By Catholic Online (NEWS CONSORTIUM)

Foreign interests now own more than $6 trillion in U.S. government debt, a recent Treasury Department report on major foreign debt holders revealed. LOS ANGELES, CA (Catholic Online) - As of the end of June 2014, foreign-held debt totaled $6,013,200,000,000 in U.S. ... continue reading


Are you ready? Economic analysts predict bear market by end of 2014 Watch

Image of Economic analysts are predicting a significant drop in the market, which may be as high as 60%.

By Catholic Online (NEWS CONSORTIUM)

Two financial experts announced on August 27 that markets may face a fall of up to 60% by the end of 2014. LOS ANGELES, CA (Catholic Online) - David Tice, the president of Tice Capital and founder of the Prudent Bear Fund, reported that a jolt to international ... continue reading


Oh really Obama? President claims economic success while population dependent on food stamps hit all time high Watch

Image of The number of Americans on food stamps has not decreased since 2011, despite claims from President Obama that the U.S. economy has recovered under his policies.

By Catholic Online (NEWS CONSORTIUM)

Democrats are facing a tough midterm election, and with less than three months to go the party is scrambling to prop up the image of the U.S. economy in the minds of disgruntled voters. LOS ANGELES, CA (Catholic Online) - Yet one of the quickest shorthand ... 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, Exodus 23:20-23
20 'Look, I am sending an angel to precede you, to ... Read More

Psalm, Psalms 91:1-2, 3-4, 5-6, 10-11
1 You who live in the secret place of Elyon, spend ... Read More

Gospel, Matthew 18:1-5, 10
1 At this time the disciples came to Jesus and said, ... Read More

Saint of the Day

Saint of the Day for October 2nd, 2014 Image

St. Leger
October 2: Leger was raised at the court of King Clotaire II and by his ... 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