It is a dramatic shift from an investor who has been selling stocks for the past two years, warning of high valuations and low market returns that would yield substantial returns. However, global financial markets have weakened in recent months as Russia invades Ukraine and fears of a Chinese economic slowdown have shaken investor confidence. This gave him a more attractive entry, according to analysts and investors who have been warmed by the vote of confidence in the stock market by the so-called Oracle of Omaha. The furious pace of stock markets was enough to put a dent in Berkshire’s cash stack, which Buffett has often likened to a war chest. Its cash fell to $ 106.3 billion at the end of March from just $ 147 billion at the end of the year. The company’s first-quarter report showed it had sold $ 9.7 billion worth of shares during the period, indicating it was a net $ 41 billion stock buyer at the beginning of the year – one of the most active quarters in recent memory. The report showed that Berkshire had sharply increased its holdings in energy company Chevron, listing its $ 25.9 billion stake as one of its top five holdings in a $ 390 billion portfolio. The investment in Chevron is accompanied by billions of dollars worth of stock purchases this year at oil giant Occidental and printer and computer maker HP. To finance these investments, as well as the $ 3.2 billion spent during the quarter on repurchases, Berkshire sold or left bonds and other securities worth more than $ 44 billion to expire in the quarter. Buffett has revealed his credentials for the deal in recent months, having remained on the sidelines for much of the pandemic era. A $ 11.6 billion deal was struck in March to acquire toy insurance company Alleghany. The details were revealed on Saturday as tens of thousands of Berkshire shareholders descended on Omaha to hear from the billionaire investor at the company’s annual general meeting, the first to be held in person since 2019. Berkshire reported net income of $ 5.5 billion in the first three months of 2022, less than half the level set a year earlier. The company’s results included a hit of $ 1.6 billion in losses on its investment and derivatives portfolio. Excluding these fluctuations, which Buffett criticized as “usually pointless” as US accounting rules required changes in the value of its investment portfolio to be included in quarterly results, the company reported operating profit of $ 7.04 billion. It was marginally above profits a year ago. The results showed that the company’s railways, utilities and manufacturing companies showed stronger earnings in the quarter, compared to the previous year. Revenue on the BNSF railroad, which Buffett described in a February letter to shareholders as one of the group’s four giants, rose 11% to $ 5.8 billion. The company warned that supply chain disruptions, including lower car shipments, due to chip shortages, had burdened shipment volumes. “In addition, the development of geopolitical conflicts in 2022 has contributed to disruptions in supply chains, resulting in increased costs for goods, goods and services in many parts of the world,” he added.

Its modular home division, Clayton Homes, reported a 21 percent increase in sales. And while he said demand remained strong, he warned that rising mortgage costs were “likely to slow down demand for new housing, which could negatively affect our businesses”. Profits from its insurance companies – including Geico – almost disappeared, dropping to just $ 47 million from $ 764 million a year earlier. The Geico unit reported underwriting losses during the period, blaming rising insurance claims and higher payment costs for these benefits. Berkshire shares outperformed the US stock market this year, rising 7.5 percent compared to a 13 percent drop from the S&P 500 benchmark.