Balance sheet beats expectations: Buffett’s Berkshire Hathaway holds record cash levels – shares benefit

Warren Buffett’s investment holding company, Berkshire Hathaway, has opened its books.

Berkshire Hathaway’s quarterly results are regularly eagerly awaited by investors. On Saturday, the star investor opened his books and gave an insight into the business development in the fourth quarter of 2023.

Operating profit was $8.481 billion in the final quarter of 2023, up 28 percent from $6.625 billion last year.

Earnings per A share were $5,881 after $4,116 a year ago. The investment holding company thus performed 30 percent better than expected in the fourth quarter of 2022. Analysts had previously estimated EPS of $5,717.

Buffett’s holding company also held $167.6 billion in cash in the fourth quarter, a record that exceeds the $157.2 billion the conglomerate held in the previous quarter.

Annual balance sheet of Buffett Holding

For the full year 2023, Berkshire Hathaway reported operating profit of $37.35 billion – also an increase of 17 percent compared to the previous year’s figure of $30.853 billion.

Buffett’s investment vehicles include the insurer Geico, the railway company BNSF and the battery manufacturer Duracell. The insurance business was a driver for the increase in operating profit last year.

The holding company’s net profit was $96 billion after a loss of $23 billion a year earlier. But Buffett himself described this number as “worse than useless” because it is distorted by book profits and losses and only provides limited information about the economy in a certain period of time.

Buffett pays tribute to Munger in letter to shareholders

In the letter to shareholders, Buffett also paid tribute to his long-time companion Charlie Munger, who died at the end of November a few weeks before his 100th birthday. Munger was the true architect of Berkshire Hathaway, emphasized Buffett. For himself, Munger was “partly an older brother, partly a loving father.”

In addition, the 93-year-old hardly sees any exciting investment properties at the moment. There are only “a handful” of companies in the USA that could make big leaps for his holding company – and he and others have had their eye on them for a long time, it said in the annual report for 2023 on Saturday. Buffett sees no suitable candidates for investing abroad.

13 F discloses Berkshire depot

Most recently, Buffett Holding had to disclose Form 13 to the SEC for the fourth quarter of 2023. All holdings of the investment vehicle are listed here. Paramount shares no longer made it into the star investor’s top 15.

On the NYSE, Berkshire Hathaway’s B shares temporarily gained 4.48 percent to $435.93 in the premarket. The A share ended trading 0.55 percent higher at $628,930 on Friday.

Editorial team / dpa-AFX

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