Berkshire Hathaway’s Latest Earnings & Warren Buffett’s Wisdom

Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, once again grabbed headlines with the company’s strong first-quarter earnings for 2025. At the same time, thousands of shareholders gathered in Omaha for Berkshire’s annual meeting—an event often called “Woodstock for Capitalists.” But this year, there was a bittersweet feeling in the air. For the first time in decades, Buffett’s longtime partner, Charlie Munger, wasn’t by his side. Munger, who passed away in late 2023, left behind a legacy that continues to shape Berkshire’s success. Let’s break down the key takeaways from Berkshire’s earnings, Buffett’s insights, and how Munger’s wisdom remains at the heart of this $900 billion empire.  

Berkshire’s Stellar Earnings: By the Numbers

Despite economic uncertainties, Berkshire Hathaway reported a 15% jump in revenue, hitting $85 billion compared to $74 billion last year. Net profit also rose to $12.7 billion, up from $8.9 billion in 2024. Here’s what’s driving the growth:  


1. Insurance Empire Crushes It (Again)  

   Berkshire’s insurance units—Geico, Berkshire Hathaway Reinsurance—brought in over $12 billion in revenue. Even with rising costs from climate-related disasters, their “float” (the money collected from premiums before paying claims) grew to a whopping $165 billion. Buffett called this the “secret sauce” fueling Berkshire’s investments.  


2. Apple and Occidental Petroleum Shine  

   Berkshire’s $160 billion stock portfolio saw big gains from Apple (up 10% this year) and Occidental Petroleum (up 22%). Buffett praised Apple as a “gem” and hinted he’d buy more shares if they dip.  


3. Railroads and Energy Keep Chugging Along  

   BNSF Railway and Berkshire’s energy division added $9 billion in revenue. While not flashy, these businesses deliver steady cash—something Buffett and Munger always loved.  

Warren Buffett’s Candid Talk at the Shareholders Meeting

At 94, Buffett hasn’t lost his knack for straight talk. Here are the highlights from his 5-hour Q&A:  


- On the Economy: “I don’t predict recessions, but I’d bet on America over the next 50 years like I did in 1965.”  

- On AI Hype: “Artificial intelligence could change the world, but it won’t replace human wisdom. Charlie would’ve said, ‘Show me the money first!’”  

- On Succession Plans: Greg Abel, Berkshire’s Vice Chair, will take over eventually. Buffett joked, “Greg already does 98% of the work. I just take credit.”  


But the most emotional moment came when Buffett paid tribute to Charlie Munger. “Charlie once told me, ‘All I want to know is where I’m going to die, so I’ll never go there.’ That’s how we built Berkshire—by avoiding stupid mistakes.” 

Charlie Munger: The Man Behind Buffett’s Success

While Buffett gets most of the attention, Charlie Munger was the quiet force who turned Berkshire from a struggling textile company into a global giant. Here’s how his “Munger-isms” still guide the company:  


- “Invert, Always Invert”: Instead of chasing success, Munger focused on avoiding failure. This led to Berkshire’s cautious, long-term bets.  

- “Buy Wonderful Businesses at Fair Prices”: Munger pushed Buffett to move beyond cheap “cigar butt” stocks and invest in quality companies like Coca-Cola.  

- “Stay in Your Circle of Competence”: Munger hated trends. He’d say, “If you don’t understand it, don’t buy it”—a rule Berkshire still follows.  


Though Munger is gone, his principles live on. At this year’s meeting, shareholders received a pamphlet with his best quotes. One attendee said, “Reading Charlie’s advice feels like getting a masterclass in common sense.”  

Berkshire’s Simple (But Powerful) Investment Rule

Buffett and Munger built Berkshire using strategies anyone can understand. Here’s their playbook:  


1. Think Decades, Not Days 

   Berkshire holds stocks forever. Its top 5 investments (Apple, Bank of America, Coca-Cola, American Express, Chevron) have been in the portfolio for 10+ years.  


2. Cash is King  

   Berkshire keeps $130 billion in cash. Why? To pounce during downturns. “Be fearful when others are greedy,” Buffett says.  


3. Ignore the Noise  

   While others chase AI or crypto, Berkshire sticks to boring industries: insurance, utilities, candy companies (yes, See’s Candies!). Munger’s motto? “Avoiding stupidity is easier than seeking brilliance.”  

What’s Next for Berkshire Hathaway?

With Buffett turning 95 this year, questions about the future linger. Here’s what to expect:  


- Greg Abel’s Era: Abel, a master of Berkshire’s energy and railroad units, will likely focus on infrastructure and renewable energy.  

- More Big Acquisitions: Buffett wants to make an “elephant-sized” purchase but admits prices are too high right now.  

- Honoring Munger’s Legacy: Expect fewer flashy tech bets and more emphasis on steady, cash-rich businesses.  

Final Thoughts: Why Berkshire Still Matters

In a world of TikTok investors and meme stocks, Berkshire Hathaway feels old-school. But that’s the point. Buffett and Munger proved that patience, simplicity, and integrity still win. As one shareholder put it, “Coming to Omaha isn’t just about money. It’s about remembering what really works.”  




So, whether you’re new to investing or a seasoned pro, take a page from Charlie Munger’s book: Focus on the basics, avoid hype, and let time do the heavy lifting. After all, as Munger liked to say, “It’s not supposed to be easy. Anyone who finds it easy is stupid.”