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Oil and Insurance: Warren Buffett invests billions

oil and insurance
Warren Buffett invests billions

Stellar US investor Warren Buffett is taking months of skyrocketing oil prices as an opportunity to expand his holdings in oil companies. His company, Berkshire Hathaway, is increasing holdings in Chevron and Occidental Petroleum. The 91-year-old announces further deals.

Stellar investor Warren Buffett’s Berkshire Hathaway investment firm has invested much of its huge cash holdings in acquisitions after a long hesitation. Increasing holdings in oil companies Chevron and Occidental Petroleum helped liquidity drop from $ 40 billion to $ 106 billion from January to March, according to Berkshire Hathaway at the annual general meeting.

At the first general meeting at the company’s headquarters in Omaha, Nebraska, since 2019, Buffett, 91, who his fans also jokingly refer to as “Orakel of Omaha,” answered questions from shareholders. Over the past year, the company, which Buffett has led for 57 years, has repeatedly returned its money to its shareholders with billions in share buybacks. As a reason, Buffett had called the lack of attractive investment opportunities.

Chevron
Chevron 148.82

But in recent months, Berkshire Hathaway has used the surge in oil prices as an opportunity to increase its holdings in oil companies. In addition, the investment firm announced the acquisition of the Alleghany insurance group for $ 11.6 billion (€ 11 billion). Operating profit was more or less stable in the first quarter at 7.04 (same quarter last year: 7.02) billion dollars (6.68 or 6.66 billion euros). Berkshire Hathaway’s net profit fell 53% to $ 5.46 billion.

Berkshire Hathaway has interests in a variety of companies, including insurance companies and a rail freight company. Operating profit for the quarter remained stable at just over $ 7 billion due to weakening insurance business, which was roughly offset by gains from other holdings.

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