OMAHA, Neb. (AP) – Warren Buffett praised his longtime partner, the late Charlie Munger, for being the architect of the Berkshire Hathaway conglomerate and called out shareholders in his annual letter. warned them not to listen to Wall Street pundits and pundits. A financial advisor who encourages you to trade frequently.
Buffett also talked about how Berkshire's insurance business flourished last year, but its large utilities and BNSF Railway were disappointing. He also told shareholders that he never intended to sell his roughly 30% stake in Occidental Petroleum and 9% stake in five major Japanese trading companies, but that he had no plans to buy oil producers outright. repeated.
Berkshire's eclectic mix of businesses, combined with strong investment performance, resulted in fourth-quarter earnings of $37.57 billion, or $26,043 per Class A share. This is more than double the profit of $18.08 billion ($12,355 per Class A share) that Berkshire reported the previous year.
But Buffett cautioned that investors should largely ignore these bottom-line numbers because they are largely influenced by the paper value of their investments. Instead, he has long urged investors to focus on Berkshire's operating income, which excludes investments.
According to this measure, Berkshire reported a 28% increase in operating income to $8.48 billion, or $5,878.21 per Class A share. This was an increase from $6.63 billion, or $4,527.06 per Class A share.
Three analysts surveyed by FactSet Research expected Berkshire to report quarterly operating profit of $5,710,717 per Class A share.
Berkshire's stock has set a series of new records in recent weeks, most recently hitting an all-time high of $632,820 per Class A share on Friday morning as investors awaited Buffett's letter. was recorded. Mr. Buffett is respected for his track record of remarkable success and for the sage advice he has provided over the decades. His annual letter is one of his most read reports of all time in the business world.
Berkshire also spent $2.2 billion on stock buybacks in the fourth quarter, bringing the full year total to $9.2 billion.
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