Berkshire Hathaway Inc., led by Warren Buffett, reported a 14% decline in first-quarter operating earnings, totaling $9.64 billion, down from $11.22 billion in the same period last year. The drop was primarily attributed to weaker performance in its insurance operations, with insurance underwriting profit falling 48.6% to $1.34 billion from $2.60 billion a year earlier. The decline was further impacted by losses from the Southern California wildfires, amounting to $1.1 billion, and a foreign exchange loss of approximately $713 million due to the dollar index falling nearly 4% in the first quarter. Despite the earnings decline, Berkshire's cash reserves reached a record high of $347.7 billion by the end of March, up from $334.2 billion at the end of 2024. This increase in cash holdings, primarily in cash and short-term Treasuries, reflects Buffett's strategy of not deploying capital into the stock market during the first quarter, as the company continued its trend of being a net seller of stocks for the 10th consecutive quarter. Additionally, Berkshire did not repurchase any of its own shares during the quarter. Berkshire's overall net income for the quarter fell significantly by 64% to $4.6 billion, influenced by unrealized losses in its stock portfolio amounting to $6.4 billion. The company's revenue slightly decreased to $89.73 billion from $89.87 billion a year ago, while its insurance float increased by $2 billion to $173 billion. Berkshire highlighted ongoing macroeconomic and geopolitical uncertainties, including international trade policies and tariffs, as factors that could impact future results. The company's market capitalization remains over $1 trillion.