Berkshire Hathaway share price: 3 things to expect from Q1 results

The conglomerate holding company has to answer these three questions from investors. before its Q1 earnings report.

Warren Buffett before Berkshire Hathaway Q1 earnings Source: Bloomberg

Berkshire Hathaway is the world’s most famous conglomerate holding company. When the corporation holds its annual convention this weekend in Omaha, Nebraska, Berkshire Hathaway Q1 results have to answer three important questions for investors.

Will accounting changes influence Berkshire Hathaway's Q1 results?

Accounting changes could impact Berkshire Hathaway’s Q1 revenue. Chief executive officer, (CEO), Warren Buffett, noted that a new General Accepting Accounting Principals(GAAP) rule said that Berkshire Hathaway’s Q1 profits must include losses from unrealised capital gains. Buffett expressed his disapproval of the rule.

‘Neither Berkshire’s Vice Chairman, Charlie Munger, nor I believe that rule to be sensible,’ said Buffett.

The new GAAP rule could mean a large discrepancy in Berkshire Hathaway’s Q1 results, such as the decline in favorite Buffett stocks like Kraft Heinz. Investors will see if Berkshire Hathaway’s Q1 revenue will be affected by the accounting changes.

Will a $10 billion oil investment affect Berkshire Hathaway’s Q1 profits?

Berkshire Hathaway’s Q1 revenue could be impacted by its recent investment in Occidental Petroleum Occidental Petroleum. The potential Occidental Petroleum acquisition of Anadarko Petroleum led Buffett to invest in the oil company. The $10 billion investment is in stark contrast to the corporation’s usual cautious approach to investment. Occidental chief executive officer, (CEO), Vicki Hollub, lauded the move in a statement.

‘We are thrilled to have Berkshire Hathaway’s financial support of this exciting opportunity. We look forward to engaging with Anadarko’s board of directors to deliver this superior transaction to our respective shareholders,’ said Hollub.

Investors will see if this latest large investment will boost Berkshire Hathaway’s Q1 profits.

Will Warren Buffett announce a successor in Berkshire Hathaway’s Q1 earnings report?

Buffett is 89 years old and has owned Berkshire Hathaway shares for 57 years, but the ‘Oracle of Omaha’ shows no signs of slowing down. However, this could finally be the year that he names a future CEO. He talked about a potential successor in 2015, but wouldn’t give specific names.

‘We now have the right person to succeed me as CEO — a successor ready to assume the job the day after I die or step down,’ said Buffett.

Potential successors include senior executives, Greg Abel and Ajit Jain. Berkshire Hathaway’s Q1 results could be influenced by Buffett finally naming a successor.

Berkshire Hathaway’s Q1 results could be impacted by these important factors. The company’s annual retreat should answer these questions for investors.


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