CHICAGO (AP) — Dansby Swanson hit a three-run homer during Chicago's four-run first inning and the short-handed Cubs beat the Houston Astros 4-3 on Wednesday night.
Playing without Cody Bellinger, Chicago used Swanson's big swing and a solid start by Jameson Taillon to earn its second straight win. It will try to sweep the three-game set against the struggling Astros on Thursday.
Click to Gallery
CHICAGO (AP) — Dansby Swanson hit a three-run homer during Chicago's four-run first inning and the short-handed Cubs beat the Houston Astros 4-3 on Wednesday night.
Houston Astros' Kyle Tucker watches his single during the fifth inning of the team's baseball game against the Chicago Cubs, Wednesday, April 24, 2024, in Chicago. (AP Photo/Erin Hooley)
Houston Astros' Jake Meyers reacts to getting hit by a pitch from Chicago Cubs' Adbert Alzolay during the sixth inning of a baseball game Wednesday, April 24, 2024, in Chicago. (AP Photo/Erin Hooley)
Houston Astros starting pitcher Spencer Arrighetti throws to a Chicago Cubs batter during the first inning of a baseball game Wednesday, April 24, 2024, in Chicago. (AP Photo/Erin Hooley)
Chicago Cubs starting pitcher Jameson Taillon throws to a Houston Astros batter during the first inning of a baseball game Wednesday, April 24, 2024, in Chicago. (AP Photo/Erin Hooley)
Chicago Cubs' Dansby Swanson is congratulated in the dugout after his home run during the first inning of the team's baseball game against the Houston Astros, Wednesday, April 24, 2024, in Chicago. (AP Photo/Erin Hooley)
Taillon (2-0) allowed two runs, one earned, and seven hits in 5 2/3 innings. The right-hander struck out four and walked two in his second start since he began the season on the injured list with a back strain.
Houston lost for the seventh time in eight games. It has scored a total of 21 runs during the slide.
Manager Joe Espada tried to spark his sputtering lineup by moving Alex Bregman into the second spot, between Jose Altuve and Yordan Alvarez. But the Astros went 1 for 10 with runners in scoring position and left 10 runners on base.
Altuve opened the ninth with a drive to left against Héctor Neris for his sixth homer. But Neris retired Bregman, Alvarez and Kyle Tucker for his second save in three opportunities.
Bellinger was placed on the 10-day injured list with two fractured ribs on his right side. The center fielder got hurt during the series opener Tuesday night.
There was no word just yet on a timetable for his return.
“The doctors will come up with a plan,” manager Craig Counsell said, “and, like everything, he’s got to get symptom-free first and we’ll go from there.”
Nico Hoerner and Ian Happ singled for Chicago in the first against Spencer Arrighetti. Michael Busch delivered a sacrifice fly and Christopher Morel walked before Swanson hit a two-out drive to left for his third homer.
Arrighetti (0-3) was pulled with two outs in the fourth. The right-hander allowed seven hits, struck out seven and walked two in his third major league start.
TRAINER'S ROOM
Astros: LHP Framber Valdez (elbow soreness) threw about 40 pitches during a bullpen session. “He came off the mound feeling good,” Espada said. Valdez remains in line to start this weekend during a two-game series against Colorado in Mexico City. … RHP Cristian Javier (neck discomfort) played catch back in Houston. “The doctor saw him, and it looks like he's improving,” Espada said.
Cubs: RHP Kyle Hendricks is taking pills to help with the inflammation from his low back strain. He also is getting treatment and playing catch to help keep his arm moving. He isn't too concerned about the injury. “It just made sense to give it the time to settle down, get out of there and give myself a chance to get back to 100 percent,” he said. ... OF Seiya Suzuki (right oblique strain) has resumed baseball activities.
UP NEXT
Houston right-hander Justin Verlander (1-0, 3.00 ERA) makes his second start since he missed the beginning of the season because of shoulder inflammation. Right-hander Javier Assad (2-0, 2.11 ERA) takes the mound for Chicago.
AP MLB: https://apnews.com/hub/MLB
Houston Astros manager Joe Espada returns to the dugout after making a pitching change during the fourth inning of the team's baseball game against the Chicago Cubs, Wednesday, April 24, 2024, in Chicago. (AP Photo/Erin Hooley)
Houston Astros' Kyle Tucker watches his single during the fifth inning of the team's baseball game against the Chicago Cubs, Wednesday, April 24, 2024, in Chicago. (AP Photo/Erin Hooley)
Houston Astros' Jake Meyers reacts to getting hit by a pitch from Chicago Cubs' Adbert Alzolay during the sixth inning of a baseball game Wednesday, April 24, 2024, in Chicago. (AP Photo/Erin Hooley)
Houston Astros starting pitcher Spencer Arrighetti throws to a Chicago Cubs batter during the first inning of a baseball game Wednesday, April 24, 2024, in Chicago. (AP Photo/Erin Hooley)
Chicago Cubs starting pitcher Jameson Taillon throws to a Houston Astros batter during the first inning of a baseball game Wednesday, April 24, 2024, in Chicago. (AP Photo/Erin Hooley)
Chicago Cubs' Dansby Swanson is congratulated in the dugout after his home run during the first inning of the team's baseball game against the Houston Astros, Wednesday, April 24, 2024, in Chicago. (AP Photo/Erin Hooley)
OMAHA, Neb. (AP) — Warren Buffett's company reported a steep drop in earnings Saturday because the paper value of its investments fell, but the tens of thousands of shareholders filling an Omaha arena to hear Buffett answer questions at the annual meeting later can take heart that Berkshire Hathaway's many businesses performed well.
Berkshire reported a $12.7 billion profit, or $8.825 per Class A share, in the quarter. That's roughly one-third of the $35.5 billion, or $24,377 per A share, that Berkshire reported a year ago.
But those figures were heavily swayed by a large drop in the paper value of Berkshire's investments. That's why Buffett encourages investors to pay more attention to the conglomerate's operating earnings that exclude the investment figures. By that measure, Berkshire's operating earnings jumped 39% to $11.222 billion from last year's $8.065 billion as its insurance companies led a strong performance.
The three analysts surveyed by FactSet Research had predicted operating earnings of $6,701.87 per Class A share.
Buffett did sell off nearly $6 billion in stocks during the quarter, including trimming about 13% of Berkshire's massive Apple stake. The investment in the iPhone maker is still the biggest one in the $364 billion portfolio at $135.4 billion.
But the estimated value of Berkshire's Apple stake suggests that Buffett sold off more than 100 million shares. Buffett has said he invested in Apple's stock because of how devoted consumers are to the iPhone and other Apple products.
Apple CEO Tim Cook, who is at the Berkshire meeting, told CNBC that he still considers it a privilege to have Berkshire as a major shareholder.
Berkshire reported a $2.6 billion underwriting profit at its insurers, up from $911 million a year ago.
BNSF railroad's profits did disappoint and drop 8% to $1.143 billion, but most of its many other companies delivered solid results, including a 72% jump in operating profits at the utility unit that added $717 million to Berkshire's total.
Berkshire's revenue grew 5% to $89.87 billion in the quarter. The two analysts who reported estimates to FactSet predicted $87.044 billion revenue.
With no major acquisitions in sight, Berkshire's massive cash pile continued to grow to a record $188.993 billion in the quarter. Berkshire even spent $2.6 billion repurchasing shares during the first three months of the year, but its companies that include Geico insurance, BNSF railroad, several major utilities and an assortment of dozens of others keep generating mountains of cash.
The main arena was already three-quarters full within half an hour of the doors opening Saturday because people are always eager to vacuum up tidbits of wisdom from billionaire Warren Buffett, who famously dubbed the meeting ‘Woodstock for Capitalists.’
But a key ingredient is missing this year: It’s the first meeting since Vice Chairman Charlie Munger died.
The meeting opened with a video tribute to Munger recounting his life and highlighting some of his best known quotes from the meetings over the years, including classic lines like “If people weren't so often wrong, we wouldn't be so rich.” The video also featured old interviews with Buffett and Munger talking about their epic friendship.
For decades, Munger shared the stage with Buffett every year for the marathon question and answer session that is the event's centerpiece. Munger routinely let Buffett take the lead with expansive responses that went on for several minutes. Then Munger himself would cut directly to the point. He is remembered for calling cryptocurrencies stupid, telling people to “marry the best person that will have you” and comparing many unproven internet businesses in 2000 to “turds.”
He and Buffett functioned as a classic comedy duo, with Buffett offering lengthy setups to Munger's witty one-liners. Together, they transformed Berkshire from a floundering textile mill into a massive conglomerate made up of a variety of interests, from insurance companies such as Geico to BNSF railroad to several major utilities and an assortment of other companies.
Munger often summed up the key Berkshire’s success as “trying to be consistently not stupid, instead of trying to be very intelligent.” He and Buffett also were known for sticking to businesses they understood well.
“Warren always did at least 80% of the talking. But Charlie was a great foil,” said Stansberry Research analyst Whitney Tilson, who was looking forward to his 27th consecutive meeting with a bit of a heavy heart because of Munger's absence.
That absence, however, may well create space for shareholders to get to know better the two executives who directly oversee Berkshire's companies: Ajit Jain, who manages the insurance units, and Greg Abel, who handles everything else. Abel will one day replace the 93-year-old Buffett as CEO.
Morningstar analyst Greggory Warren said he hopes Abel will speak up more this year and let shareholders see some of the brilliance Berkshire executives talk about. Ever since Munger let it slip at the annual meeting three years ago that Abel would be the successor, Buffett has repeatedly reassured investors that he's confident in the pick.
Experts say the company has a solid culture built on integrity, trust, independence and an impressive management roster ready to take over.
“Greg's a rock star,” said Chris Bloomstran, president of Semper Augustus Investments Group. "The bench is deep. He won’t have the same humor at the meeting. But I think we all come here to get a reminder every year to be rational.”
For more AP coverage of Warren Buffett look here: https://apnews.com/hub/warren-buffett. For Berkshire Hathaway news, see here: https://apnews.com/hub/berkshire-hathaway-inc. Follow Josh Funk online at https://www.twitter.com/funkwrite and https://www.linkedin.com/in/funkwrite.
Berkshire Hathaway shareholders pose with the mascot for one of its companies, Oriental Trading, while the more famous spokeslizard for Geico insurance looms over their shoulder, Friday, May 3, 2024, in Omaha, Neb. CEO Warren Buffett will spend hours answering questions at the meeting on Saturday. (AP Photo/Josh Funk)
Berkshire Hathaway shareholders pose with a cutout poster of CEO Warren Buffett Friday, May 3, 2024, in Omaha, Neb., inside the exhibit hall in Omaha where Berkshire companies sell their products. Buffett will spend hours answering questions at the meeting Saturday. (AP Photo/Josh Funk)
Daegwon Kim of South Korea, who arrived in line at 3:30 a.m., takes photos of the crowd behind him outside the Berkshire Hathaway annual meeting on Saturday, May 4, 2024, in Omaha, Neb. (AP Photo/Rebecca S. Gratz)
Berkshire Hathaway Vice Chairman Greg Abel poses with shareholders Friday, May 3, 2024, in Omaha, Neb. Abel is set to be the next CEO after Warren Buffett is gone. (AP Photo/Josh Funk)
Berkshire Hathaway shareholders watch a model BNSF train run past a model town filled with other Berkshire companies Friday, May 3, 2024, in Omaha, Neb. Buffett will spend hours answering questions at a meeting Saturday. (AP Photo/Josh Funk)
Berkshire Hathaway shareholders line up to take selfies with Greg Abel Friday, May 3, 2024, in Omaha, Neb. Abel will one day replace Warren Buffett as CEO. (AP Photo/Josh Funk)
Berkshire Hathaway investment manager Ted Weschler, center, talks with Brooks Running CEO Dan Sheridan, Friday, May 3, 2024, in Omaha, Neb., one day ahead of the annual shareholders meeting. (AP Photo/Josh Funk)
Berkshire Hathaway shareholders pose with a cutout poster of CEO Warren Buffett, Friday, May 3, 2024, in Omaha, Neb., one day ahead of the annual shareholders meeting. (AP Photo/Josh Funk)
Berkshire Hathaway Vice Chairman Greg Abel poses for pictures with shareholders while touring the booths Berkshires companies set up, Friday, May 3, 2024, in Omaha, Neb. Abel will succeed Warren Buffett as CEO one day. (AP Photo/Josh Funk)
Berkshire Hathaway Vice Chairman Greg Abel checks out the flight simulators offered by one of Berkshires companies, Flight Safety as he toured the exhibit hall Friday, May 3, 2024, in Omaha, Neb. ahead of Saturday's meeting. Abel is set to succeed Warren Buffett as CEO one day. (AP Photo/Josh Funk)
