Berkshire Hathaway Q4 2023 Earnings Report

In the fourth quarter of 2023, Berkshire Hathaway saw a significant increase in operating earnings after taxes, rising by 28% to $8.5 billion. The growth was primarily driven by the company's thriving insurance business and higher investment income. However, profits did decline in Berkshire's utility and energy sector, as well as at the Burlington Northern Santa Fe railroad.

Operating Profits and Share Performance

During the fourth quarter, the company's operating profits per class A share surged to $5,881, marking a 30% increase compared to the same period in 2022. This performance surpassed the consensus estimate from FactSet of $5,717 per share. The per share operating earnings were meticulously calculated by ’s.

Stock Repurchases and Total Earnings

Berkshire Hathaway executed a buyback of $2.2 billion of stock in the fourth quarter, a notable increase from the previous quarter. The total repurchases for 2023 amounted to $9.2 billion, showing a rise from the previous year but a decrease from the record high in 2021 at $27.1 billion.

Total earnings after taxes for the fourth quarter reached $37.6 billion, showing a significant increase from $18.1 billion in the same quarter of 2022. These impressive earnings were largely due to the substantial gains in Berkshire's equity portfolio, surpassing $350 billion in value. Notably, Apple, Berkshire's largest equity holding, played a significant role in driving these gains.

CEO's Guidance and Financial Position

CEO Warren Buffett advises investors to focus on operating earnings that exclude reported investment gains. This approach allows for a clearer understanding of the company's underlying earnings power, especially since these gains are generally one-off events.

At the end of the fourth quarter, Berkshire's total holdings of cash and equivalents reached a record high of $167.7 billion, up from $157 billion as of September 30.