Will Warren Buffett’s Berkshire Hathaway’s Earnings Tell Us Something About the True State of the Economy?

Berkshire Hathaway (NYSE:BRK-B) CEO Warren Buffett, known as the Oracle of Omaha, is among the greatest living investors. Because Berkshire Hathaway has delivered outstanding long-term returns for its shareholders, the company’s imminent earnings release will be a closely watched and highly anticipated event.

Yet, there will be broader implications for this weekend’s Berkshire Hathaway earnings report. Even beyond the company’s past, present, and future financial results, Berkshire’s earnings will serve as a bellwether for America’s economy as a whole.

How Berkshire Hathaway has performed, and what the company expects to deliver in the future, could serve as harbingers of the state of the economy in 2025. Moreover, any remarks that Buffett might make will be interpreted as signals of confidence or caution. Therefore, no investor can afford to miss Berkshire’s upcoming earnings event or overlook its ramifications for the U.S. economy and markets.

Like the S&P 500, but Maybe Better

Suffice it to say, this isn’t just another earnings event and conference call. Investors from around the world will dissect every data point from Berkshire Hathaway’s results and forward guidance, along with any commentary from Buffett.

Just to provide some background info, Berkshire Hathaway is a diversified holding company with brands including Geico insurance, Dairy Queen, Fruit of the Loom, and even Ginsu knives. Most importantly, though, Berkshire invests in a broad array of businesses it doesn’t directly own.

Buffett isn’t known for chasing the latest technology trends. Instead, his company buys shares of established businesses across a range of economic sectors.

To provide a few examples, Berkshire Hathaway’s portfolio holdings include shares of soda giant Coca-Cola (NYSE:KO), energy producer Occidental Petroleum (NYSE:OXY), and packaged foods purveyor Kraft Heinz (NASDAQ:KHC).

This isn’t to suggest that Buffett hates modern technology. After all, Berkshire Hathaway holds shares of tech behemoths Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN). His company also owns shares of financial firms Bank of America (NYSE:BAC), Citigroup (NYSE:C), Visa (NYSE:V), and American Express (NYSE:AXP).

This explains why Berkshire Hathaway stock shares are sometimes used as a substitute for S&P 500 index funds. Just like with the S&P 500, you’ll get instant and expertly managed diversification with shares of Berkshire.

And so far in 2025, Berkshire Hathaway stock has handily outperformed the S&P 500. It just goes to show that Buffett’s stock picks can withstand economic uncertainty — and perhaps, if Berkshire’s results are positive, maybe there’s hope for an economic recovery.

The “Woodstock for Capitalists”

Since Buffett is such a legend among investors, and because Berkshire Hathaway’s year-to-date results have been so good, Berkshire’s upcoming earnings report will draw an extra measure of interest from onlookers. Hence, here’s the rundown so you can mark your calendar.

Most large-cap firms release their earnings reports on weekdays, but Buffett has always been a maverick. This year, Berkshire Hathaway will release its first-quarter earnings report on Saturday, May 3, at 8:00 a.m. Eastern time.

Next, just an hour later at 9:00 a.m. Eastern time on Saturday, Buffett will hold Berkshire Hathaway’s annual shareholder meeting. That’s when 94-year-old Buffett will discuss his company and, hopefully, provide some insights into the state of the economy as a whole.

Investors shouldn’t underestimate the importance of Berkshire Hathaway’s annual shareholder meeting. I’ve heard people compare it to the Super Bowl, and The Wall Street Journal dubbed it “Woodstock for Capitalists.”

Unlike Woodstock, however, Berkshire’s meeting will only have one rock star: Mr. Warren Buffett. The tone of his remarks could portend optimism or gloom for America’s economy in 2025. Berkshire Hathaway

The optimists should hope that Buffett’s spoken commentary this weekend will be less cautionary than a written remark he made in February. In Berkshire Hathaway’s shareholder letter, Buffett stated ominously, “Often, nothing looks compelling; very infrequently we find ourselves knee-deep in opportunities.”

Thus, stock market bulls will surely want to hear the Oracle of Omaha adopt a more positive tone this weekend. Otherwise, they may conclude that Buffett and Berkshire don’t see “compelling” buying opportunities amid the current economic backdrop.

Berkshire’s Results Are America’s Results

For 2025’s first quarter, the average analyst estimate calls for Berkshire Hathaway to have earned $4.72 per share. Knowing this, it may be tempting to assume that the U.S. economy is in good condition if Berkshire beats the average earnings estimate.

It’s not as simple as that, though. There will be many nuances within Berkshire Hathaway’s financial report, such as the top- and bottom-line results of each of Berkshire’s subsidiary companies.

There will be cues and clues into America’s economic state, but they won’t be entirely encapsulated within one particular data point. Instead of getting caught up in whether Berkshire Hathaway “beat” or “missed” earnings, watch for the overarching tone of Berkshire’s quarterly report.

Then, gear up for “Woodstock” as Buffett shares his insights during Berkshire Hathaway’s annual meeting. Berkshire stock might not be a perfect proxy for America’s economic state, but the company’s results and the Oracle’s remarks will likely be tone-setting and trend-setting for the remainder of 2025.

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