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Warren Buffett (Trades, Portfolio) warned against the use of trade as a political weapon during Berkshire Hathaway's (BRK.B, Financials) Q1 2025 update, indirectly referencing former President Donald Trump's tariff strategy and calling for a balanced global trading system.
The conglomerate reported a 63% year-over-year decline in net earnings, falling to $4.6 billion, as it absorbed a $1.1 billion insurance-related loss tied to wildfires in Southern California. Operating income remained stable at $9.64 billion.
Berkshire's cash position surged to $334.2 billion at the end of March, up from $167 billion in December, which Buffett attributed to a lack of compelling deals.
The equity portfolio remains highly concentrated. Roughly 69% of holdings were in Apple (AAPL, Financials), American Express (AXP, Financials), Bank of America (BAC, Financials), Chevron (CVX, Financials), and Coca-Cola (KO, Financials).
New positions included a 7% stake in Domino's Pizza (DPZ, Financials), 5.6 million shares of Constellation Brands (STZ, Financials), and more exposure to Sirius XM (SIRI, Financials). Berkshire also raised its holding in Occidental Petroleum (OXY, Financials) to 28.3% after buying $35.7 million in new shares.
Ajit Jain, Berkshire's insurance chief, described artificial intelligence as a game-changer. Buffett contrasted public equities and real estate, favoring the former for its liquidity and simplicity.
He also reiterated that Berkshire could spend $100 billion quickly if the right opportunity emerges, calling investment a very opportunistic business.
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This article first appeared on GuruFocus.