Warren Buffett’s Berkshire Hathaway posts record annual operating profit

Warren Buffett‘s Berkshire Hathaway Inc On Saturday The company reported its highest annual operating profit ever, even though foreign currency losses were higher than expected and investment returns fell. Fourth-quarter profit also dropped.

Buffett 2022 is the year of our name “good year” For Berkshire His annual shareholder letter stated that conglomerate’s businesses made $30.8 billion profit in the last year despite rising inflation, supply chain disruptions, and war invading. Ukraine.

Berkshire It also increased its cash stash, finishing the year with $128.6 million.

The Omaha, NebraskaA conglomerate based in New York sold stocks worth $16.3 billion in the fourth quarter. However, it found better value by repurchasing shares. In the quarter, the company bought back $2.6 million and $7.9 trillion for the whole of 2022.

Berkshire Shareholders “trust us to treat their money as we do our own,” Buffett He said so in his letter. “And that is a promise we can make.”

Quarterly Operating profit dropped 8% to $6.71 Billion, or $4,596 per Class A share starting at $7.29 trillion

Results In addition to the currency losses, there were more underwriting losses at Car Insurance. These losses totaled around $1.2 billion. Geico, which has had more difficulties than its competitors with accidents claims and properly pricing policies that reflect risk.Profit Also, the BNSF railroad was also affected. Berkshire As interest rates rose, it generated more profit through its energy businesses and more income via its insurance investments.

Quarterly Net income decreased 54% to $18.16 trillion, or $12,412 per Class Shares from $39.65 Billion, or $26,690 each share, one year earlier.

For All of 2022 Berkshire The loss of its $308.8 million common stock portfolio led to a $22.82 billion loss.

Buffett Because net income includes gains and loss from stock holdings, it is misleadingly referred to as a performance measure. Apple Inc Bank Of America CorpNo matter what Berkshire Buys and sells

How it is possible to have a shortage of new investments? Berkshire It increased its cash stake even though it spent $11.5 billion to purchase the insurance company in the fourth quarter Alleghany Corp.

That Buy Help Berkshire Increase your insurance “float,” This reflects premiums paid up front, before claims are paid. It also helps fund growth, which was 12% last year at $164.1 billion.

“We’re delighted to see the growth in float,” Thomas RussoA partner at Gardner Russo & Quinn Who helps to invest $8 billion of which approximately 17% is in Berkshire stock. “Buffett often describes float as more important than cash.”

Berkshire Additionally, they spent $8.2 trillion on Jan. 31 to increase its stake at truck stop operator Pilot Travel Centers To 80% with 38.6%

Berkshire’s The share price rose by 4% in 2022, well ahead of the Standard & Poor’s 500 fell 18%, including dividends. Berkshire’s Status is a protective investment in rocky markets

The Shares have declined 1.5% in 2023 while the index has risen 3.4%