Berkshire earnings soar

    Buffett also reported Saturday that operating earnings at Berkshire Hathaway (BRKB) rose 30% from a year ago in the first quarter, as economic activity has picked up this spring.

    Berkshire posted a first-quarter profit of $3.6 billion. That reverses a year-ago loss of $1.5 billion. As always, the results were heavily affected by gains and losses on the firm's investments and derivatives contacts.

    Excluding those noisy factors, as Buffett prefers to, Berkshire's operating profit rose to $2.2 billion in the quarter from $1.7 billion a year earlier.

    The gains were driven by strong results at Berkshire's operating businesses, which range from utilities and railroads to metalworking and furniture.

    Profit at the company's regulated businesses, including big electric generator MidAmerican Energy and recently acquired railroad Burlington Northern, more than doubled to $555 million.

    Earnings at the company's manufacturing, service and retail arms rose sharply as well, jumping 85% to $477 million.

    Insurance earnings slipped from a year ago though, to $1.16 billion from $1.2 billion a year earlier. Berkshire owns auto insurance giant Geico among other insurance businesses.

    While jobs are returning slowly after a long recession, "business is coming back more than slowly," Buffett told CNNMoney.com. He said March and April were "very strong months" in the company's operating businesses.

    "People have regained confidence to some degree," Buffett said. "There has been a real resurgence in demand."