Buffett’s Berkshire posts record cash as operating income surges | international business news
rabbitry buffet‘S berkshire Hathway Inc recorded growth operating income as high as Rate of interest And the group’s insurance business benefited from fewer disasters.
The firm reported operating income of $8.48 billion in the fourth quarter, compared with $6.63 billion in the same period a year earlier. Results were helped by a jump in insurance underwriting income and investment income amid higher interest rates and mild weather. cash Pyle also set a new record $167.6 billion, as the billionaire investor faced a lack of big deals.
Berkshire’s earnings have always been closely watched as a proxy for US economic health because of the wide-ranging nature of its businesses – ranging from railroad BNSF, Geico and Dairy Queen. This makes the company particularly sensitive to higher interest rates, which could reduce demand, and Buffett warned in May last year that an “incredible period” for the US economy could end in 2023. Most operating earnings will fall.
“Our insurance business performed exceptionally well last year, setting records in sales, float and underwriting profits,” Buffett said in his annual shareholder letter. Which the company released along with its earnings on Saturday. “We have a lot of room to grow.”
It is the first time Berkshire has reported earnings since Charlie Munger, Berkshire vice chairman and Buffett’s longtime investment partner, died in late November at the age of 99. Buffett devoted much of the letter to praising Munger’s role in building this massive company.
Despite Berkshire’s acquisition machine accelerating in recent years, the company has still struggled to find many of the big-ticket deals that boosted Buffett’s reputation, leading to comparisons between him and his investment representatives. Left with more cash.
After hanging back during the pandemic, he bought shares in Occidental Petroleum Corp and struck an $11.6 billion deal to buy Allegheny Corp. Investors also boosted Berkshire’s stake after Japan’s five trading houses saw profits rise last year – a move that sent their stock soaring. Buffett also continues to lean on share repurchases amid a lack of attractive alternatives, saying the measures benefit shareholders.
Including investments and derivatives, Berkshire reported net income of $37.6 billion for the quarter, up from a year earlier, helped by higher interest rates. Berkshire often advises investors to pay attention to investment profits or losses, which are tied to accounting rules, saying they can be misleading.
In the absence of big deals, Buffett has also continued to lean on share repurchases, which he has said will benefit shareholders. The company spent $2.2 billion on buybacks in the fourth quarter, bringing the total for the year to nearly $9.2 billion.
The firm reported operating income of $8.48 billion in the fourth quarter, compared with $6.63 billion in the same period a year earlier. Results were helped by a jump in insurance underwriting income and investment income amid higher interest rates and mild weather. cash Pyle also set a new record $167.6 billion, as the billionaire investor faced a lack of big deals.
Berkshire’s earnings have always been closely watched as a proxy for US economic health because of the wide-ranging nature of its businesses – ranging from railroad BNSF, Geico and Dairy Queen. This makes the company particularly sensitive to higher interest rates, which could reduce demand, and Buffett warned in May last year that an “incredible period” for the US economy could end in 2023. Most operating earnings will fall.
“Our insurance business performed exceptionally well last year, setting records in sales, float and underwriting profits,” Buffett said in his annual shareholder letter. Which the company released along with its earnings on Saturday. “We have a lot of room to grow.”
It is the first time Berkshire has reported earnings since Charlie Munger, Berkshire vice chairman and Buffett’s longtime investment partner, died in late November at the age of 99. Buffett devoted much of the letter to praising Munger’s role in building this massive company.
Despite Berkshire’s acquisition machine accelerating in recent years, the company has still struggled to find many of the big-ticket deals that boosted Buffett’s reputation, leading to comparisons between him and his investment representatives. Left with more cash.
After hanging back during the pandemic, he bought shares in Occidental Petroleum Corp and struck an $11.6 billion deal to buy Allegheny Corp. Investors also boosted Berkshire’s stake after Japan’s five trading houses saw profits rise last year – a move that sent their stock soaring. Buffett also continues to lean on share repurchases amid a lack of attractive alternatives, saying the measures benefit shareholders.
Including investments and derivatives, Berkshire reported net income of $37.6 billion for the quarter, up from a year earlier, helped by higher interest rates. Berkshire often advises investors to pay attention to investment profits or losses, which are tied to accounting rules, saying they can be misleading.
In the absence of big deals, Buffett has also continued to lean on share repurchases, which he has said will benefit shareholders. The company spent $2.2 billion on buybacks in the fourth quarter, bringing the total for the year to nearly $9.2 billion.
