Earnings? What Earnings?

On the eve of its annual shareholders meeting, Berkshire Hathaway reported a 64 percent decrease in first-quarter income--but the news did little to dampen the high spirits of thousands of shareholders who have descended on Omaha, Nebraska for the weekend's festivities.

On Friday night, well over five thousand people crammed into Borsheim's, Berkshire's famed jewelry retailer, for the weekend's opening kickoff--and a steep shareholder discount--but if they were concerned about Berkshire's sharp earnings decline or Friday allegations of corporate misconduct, they certainly weren't showing it.

In a giant tent set up outside the massive jewelry store to shelter the shareholders from biting winds and rain, a cover band played classic rock songs and the martinis flowed freely. New and old shareholders alike mingled and noshed on hors d'oeuvres.

Just hours earlier, Berkshire had reported that first-quarter net income had fallen sharply, thanks to a $1.6 billion loss on derivative contracts and weakening profits from its myriad insurance interests.

But Patricio Sampayo, a 26-year-old Berkshire shareholder from Matamoros, Mexico who works for his family's private equity firm, was not fazed by the company's lackluster earnings report.

"It doesn't really matter," Sampayo said, as his sipped a martini in front of Borsheim's. "At the end of the day, it's all just paper profits and paper losses. We're in this investment for the long term."

"If Berkshire can sell at a 20 percent discount because of this, that would be great," Sampayo added. "Then we'll buy more."

Berkshire's decrease in quarterly earnings was driven in large part by a softening market for insurance polices. The company reported $181 million in net income from its insurance interests, which include Geico, the giant auto insurer. A year ago, by contrast, Berkshire's insurance companies generated $601 million in profits.

--Sam Gustin