Shai Gilgeous-Alexander's 33 points lead Thunder past Pelicans 124-92 as OKC takes a 2-0 lead

OKLAHOMA CITY (AP) — Just a few days ago, the Oklahoma City Thunder looked like a young team struggling through their first playoff game together.

On Wednesday night, they looked like grizzled playoff veterans.

Shai Gilgeous-Alexander scored 33 points and the top-seeded Thunder beat the New Orleans Pelicans 124-92 to take a 2-0 lead in their first-round Western Conference playoff series.

Gilgeous-Alexander said the Thunder remained focused instead of worrying about outside issues such as other highly seeded teams struggling at home.

“I think it just goes back to us prioritizing winning,” he said. “And all those things are distractions that get in the way of winning. And every night, all 15 of us go to bed and want to win the next game, want to win the next day. And we do everything we can to do so.”

Chet Holmgren had 26 points and seven rebounds and Jalen Williams added 21 points for the Thunder, who shot 59% from the field and made 14 of 29 3-pointers.

Jonas Valanciunas scored 19 points and Herb Jones and Brandon Ingram added 18 each for the Pelicans.

In Game 1, Valanciunas had 20 rebounds, including nine offensive, and the Pelicans outrebounded the Thunder 52-44. On Wednesday, Oklahoma City outrebounded New Orleans 37-35 and held the Pelicans to eight offensive boards.

The Pelicans continued to struggle on offense without top scorer Zion Williamson, who remained out with a strained left hamstring. Ingram, New Orleans' No. 2 scorer in the regular season, got off just 10 shots in Game 2 as Oklahoma City's Lu Dort harassed him throughout the night. Ingram made just 5 of 17 field goals in Game 1.

The Thunder also scored 22 points off New Orleans’ 18 turnovers.

Game 3 is Saturday in New Orleans.

“Now, the challenge is to continue to grow and learn and improve with the series because the Pelicans are going to improve," Thunder coach Mark Daigneault said. "They’re a good team that’s going home and they’re well coached. They’re going to get better. You know so we have to continue to get better.”

The pace picked up significantly from Sunday's game, which Oklahoma City won 94-92. The Thunder, who averaged 120.1 points in the regular season, were much more comfortable with it.

“In the first game, I thought both teams were kind of calibrating," Daigneault said. "And, tonight we had much quicker recognition of the way that they were guarding us, where we wanted to attack, and we got to those things pretty well.”

Valanciunas scored 11 points in the first three minutes, but Holmgren countered with 13 points in the first seven minutes.

Gilgeous-Alexander picked up where Holmgren left off. He didn't score for the first nine minutes, then scored seven in the final three minutes of the quarter to help the Thunder take a 35-22 lead. Holmgren's 15 points were the most by a Thunder rookie in any quarter of a playoff game.

“I thought they turned up the pressure offensively,” Pelicans coach Willie Green said. “They got some early 3's and that opened the floodgates up for them.”

Oklahoma City led 63-50 at halftime. Holmgren scored 20 points and Gilgeous-Alexander added 16 before the break.

The Thunder extended their lead to 92-74 at the end of the third, and Gilgeous-Alexander and Holmgren went to the bench for good with the Thunder leading 120-86 in the fourth.

“Tough one for us,” Green said. “Give them credit, they took care of home court. It was a dominant win for them. So we’ll get home, we’ll regroup and get back after it.”

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New Orleans Pelicans forward Brandon Ingram, right, drives against Oklahoma City Thunder guard Luguentz Dort during the second half in Game 2 of an NBA basketball first-round playoff series Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)

Oklahoma City Thunder forward Jalen Williams dunks as New Orleans Pelicans forward Brandon Ingram watches during the second half in Game 2 of an NBA basketball first-round playoff series Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)

Oklahoma City Thunder guard Luguentz Dort (5) looks to pass the ball away from New Orleans Pelicans guard Trey Murphy III (25) during the second half in Game 2 of an NBA basketball first-round playoff series Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)

Oklahoma City Thunder forward Chet Holmgren (7) prepares to shoot from between New Orleans Pelicans forward Herbert Jones (5) and guard CJ McCollum (3) during the first half in Game 2 of an NBA basketball first-round playoff series Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)

New Orleans Pelicans guard CJ McCollum (3) shoots against Oklahoma City Thunder forward Chet Holmgren (7) as guard Shai Gilgeous-Alexander (2) watches during the second half in Game 2 of an NBA basketball first-round playoff series Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)

New Orleans Pelicans forward Zion Williamson shouts from the bench during the second half in Game 2 of the team's NBA basketball first-round playoff series against the Oklahoma City Thunder, Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)

Oklahoma City Thunder guard Luguentz Dort, right, prepares to shoot next to New Orleans Pelicans forward Brandon Ingram during the first half in Game 2 of an NBA basketball first-round playoff series Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)

New Orleans Pelicans center Jonas Valanciunas (17) is defended by Oklahoma City Thunder forward Chet Holmgren (7) during the first half in Game 2 of an NBA basketball first-round playoff series Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)

New Orleans Pelicans center Jonas Valanciunas, right, shoots a reverse shot against Oklahoma City Thunder forward Chet Holmgren (7) during the first half in Game 2 of an NBA basketball first-round playoff series, Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)

Oklahoma City Thunder guard Shai Gilgeous-Alexander, right, drives against New Orleans Pelicans guard CJ McCollum, left, during the first half in Game 2 of an NBA basketball first-round playoff series, Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)

Oklahoma City Thunder guard Shai Gilgeous-Alexander (2) shoots next to New Orleans Pelicans forward Herbert Jones (5) as Pelicans guard Trey Murphy III (25) watches during the first half in Game 2 of an NBA basketball first-round playoff series Wednesday, April 24, 2024, in Oklahoma City. (AP Photo/Nate Billings)

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.

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)