LOS ANGELES, CA (Catholic Online) - The welcome news arrives just before the conglomerate's annual shareholder meeting, a festival-like event dubbed the "Woodstock for Capitalism" that draws nearly 40,000 investors to Omaha.

One Berkshire investor said his compatriots were much more likely to focus on succession issues for the 81-year-old Buffett than other questions like the quarterly report.

"If you boil it down, most people say: 'who's the replacement going to be,'" Harvey Eisen, chairman of Bedford Oak Advisors said.

Net income attributable to Berkshire shareholders more than doubled to $3.25 billion, or $1,966 per share, from $1.51 billion, or $917 per share, last year.

First-quarter operating profit rose to $2.67 billion, or $1,615 per Class A share. Analysts expected operating profit of $1,780 per share, according to Thomson Reuters I/B/E/S.

Revenue rose 13 percent to $38.15 billion, and Berkshire ended the quarter with $37.83 billion of cash and equivalents, up around $500 million from the beginning of the year.

Compared with a year-earlier $821 million loss, when results were hurt by costs for earthquakes in Japan and New Zealand and floods and a cyclone in Australia,
Berkshire posted a $54 million insurance underwriting profit in the quarter.

Underwriting gains within the insurance group, at auto insurer GEICO fell sharply, in large part on accounting changes related to how insurers recognize the cost of acquiring customers. Losses narrowed in the reinsurance business as well.

Profit from railroad operations, including the former Burlington Northern Santa Fe Corp, rose 15 percent to $701 million, Berkshire reported.

In addition, profit from manufacturing, service and retailing operations rose 53 percent to $854 million.
Berkshire also saw a nearly four-fold increase in the gains on its portfolio of derivatives, to $650 million.

It wasn't all good news, however. Results were hurt, though, by a $337 million loss on Texas Competitive Electric Holdings bonds, according to Berkshire's quarterly report. The bonds issued by the former TXU were "a big mistake," Buffett told Berkshire shareholders in his annual letter earlier this year.

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