Berkshire Hathaway fourth-quarter operating earnings fall 8%, cash hoard swells to nearly $130 billion

Berkshire Hathaway fourth-quarter operating earnings fall 8%, cash hoard swells to nearly 0 billion


In this article

  • BRK.B
Warren Buffett.
Gerald Miller | CNBC

Berkshire Hathaway‘s operating profits fell during the fourth quarter as inflationary pressures weighed on the conglomerate’s businesses.

Berkshire Hathaway’s operating earnings totaled $6.7 billion in the fourth quarter of 2022, a release read Saturday. That’s down 7.9% from the year-earlier period when profits totaled $7.285 billion. Operating earnings refers to the total profits made from the businesses owned by the conglomerate.

Earnings from Berkshire’s railroad, utilities and energy businesses came in at $2.2 billion in the fourth quarter of 2022, which is slightly down from the year-ago period. Meanwhile, the firm’s insurance-underwriting business fell to $244 million in the fourth quarter of 2022, down from $372 million the year-earlier period.

For the year, the conglomerate’s operating earnings totaled $30.793 billion. That’s up 12.2% from $27.455 billion in 2021.

Meanwhile, Berkshire used $2.855 billion to buy back shares in the fourth quarter. That’s lower than the year-earlier period when share repurchases totaled more than $6 billion but more than the third quarter’s repurchase total of around $1 billion. For the year, Berkshire bought back nearly $8 billion in common stock.

Despite this, Berkshire’s cash hoard grew to $128.651 billion in the fourth quarter of 2022. That’s up from nearly $109 billion in the third quarter.

Buffett said in his annual shareholder letter that Berkshire will continue to hold a “boatload” of cash and U.S. Treasury bills along with its myriad of businesses. He specified that future CEOs in the company will have a “significant part” of their net worth in Berkshire shares.

Stock Chart IconStock chart icon

hide content
BRK in 2023

“We will also avoid behavior that could result in any uncomfortable cash needs at inconvenient times, including financial panics and unprecedented insurance losses,” Buffett wrote. “And yes, our shareholders will continue to save and prosper by retaining earnings. At Berkshire, there will be no finish line.”

Overall earnings dropped to $18.164 billion in the fourth quarter of 2022, a 54% decline from the same quarter in the year prior. These earnings reflect Berkshire’s fluctuating equity investments.

For the full year, overall earnings tumbled 125% to a loss of $22.819 billion in 2022, down from earnings of $89.795 billion in 2021. That number is largely a byproduct of tumultuous 2022 market, with the company reporting a $53.6 billion loss from investments and derivatives.

Regardless, Buffett often gives little weight to changes in the firm’s quarterly or annual results.

“The amount of investment gains/losses in any given quarter is usually meaningless and delivers figures for net earnings (losses) per share that can be extremely misleading to investors who have little or no knowledge of accounting rules,” read a statement from the release.

Berkshire shares are down nearly 1.6% in 2023.



Source

Billionaire Ken Griffin’s hedge funds at Citadel are all in the green for 2025
Finance

Billionaire Ken Griffin’s hedge funds at Citadel are all in the green for 2025

Citadel CEO Ken Griffin speaks during the Semafor World Economy Summit 2025 at Conrad Washington on April 23, 2025 in Washington, DC. Kayla Bartkowski | Getty Images Billionaire investor Ken Griffin’s hedge funds at Citadel have all posted positive returns during a volatile 2025, led by the tactical trading fund. Citadel’s multistrategy Wellington fund, its largest, gained […]

Read More
Stocks making the biggest moves midday: Tesla, Tandem Diabetes, GE Vernova, Hasbro and more
Finance

Stocks making the biggest moves midday: Tesla, Tandem Diabetes, GE Vernova, Hasbro and more

Check out the companies making the biggest moves midday: Diabetes tech stocks — The Centers for Medicare & Medicaid Services is proposing a rule change that could change the reimbursement rates for continuous glucose monitors and insulin pumps. The news sent shares of diabetes tech stocks lower. Tandem Diabetes Care and Beta Bionics tumbled 4% […]

Read More
Cliff Asness’ AQR sees multiple hedge funds up double digits in 2025, beating the market
Finance

Cliff Asness’ AQR sees multiple hedge funds up double digits in 2025, beating the market

Key Points AQR Capital Management’s Apex strategy rallied 11.4% in the first six months of the year, according to a person familiar with the fund’s returns. AQR’s long-short Delphi equity fund gained 11.6% net of fees in the first half of 2025, the person said. Its alternative trend-following Helix strategy has returned 7.4% so far […]

Read More