5 Highlights of Warren Buffett’s Letter to Shareholders and Berkshire’s 2023 Annual Report
1 . Berkshire’s operating earnings rose 28% in Q4 and cash rose to $167.6 billion from $157.2 billion at end of Q3. Profit increases in insurance underwriting and investment income handily offset declines at BNSF (railroad) and BHE (energy).
2.Berkshire bought back $2.2 b of stock in Q4 up from $1.1 b in Q3. Total repurchases in 2023 were $9.2 b vs. $7.9 b in 2022 and $27.1 b in 2021. It also purchased about $600 m of its shares in Q1 2024 through February 12.
3. Warren Buffett was very pleased with performance in Berkshire’s insurance businesses but disappointed with that of BNSF and BHE.
4. Berkshire’s Class A closing price of $628,930 equals 1.6 times its book value of about $389,000, slightly above its historic average of 1.4 to 1.5.
5. For the second year in a row, Warren Buffett did not reveal Berkshire’s largest equity holdings (although he discussed a few of them, with emphasis on Occidental Petroleum and 5 large Japanese trading companies).
Article by Dr. David Kass