Berkshire Hathaway cash pile post a record high, hits $168 billion

Berkshire Hathaway managed by Warren Buffet recorded a significant increase in operating profitability in the fourth quarter, thanks to significant increases in its insurance sector and the company’s cash pile reached historic highs.

The Omaha-based conglomerate reported $8.481 billion in operating earnings for the quarter that ended in December. Operating earnings are the profits from operations that include utilities, railroads, and insurance. That is 28% more than the $6.625 billion during the same time last year.

This increased operational earnings to $37.350 billion for the entire year 2023, up 17% from $30.853 billion the year before. Additionally, Berkshire posted a record cash on hand in the fourth quarter of $167.6 billion, exceeding the $157.2 billion the conglomerate had in the previous quarter.

Warren Buffett’s “favorite,” the auto insurer Geico, posted a profitable year in 2023, with net underwriting earnings of $5.428 billion. Lower claims and higher premium rates from the previous year were the main drivers of the higher earnings.

“In interpreting our reported periodic results or assessing the financial performance of our operating businesses, we believe that investment gains and losses on investments in equity securities—whether realized from dispositions or unrealized from changes in market prices—are generally meaningless. “This was stated in an annual report.

In the meantime, Burlington Northern Santa Fe recorded $5.087 billion in net earnings for the entire year a 14% decrease from $5.946 billion.
Operating earnings for the company were driven by an increase in insurance underwriting, which jumped to $848 million in the fourth quarter, up 430% from $160 million in the same period last year. Moreover, insurance investment income increased 37% quarterly to $2.759 billion from $2.0 billion during the same time last year.

However, operating profits in the railroad, utility, and energy sectors declined during the fourth quarter. Railroads’ operating profits decreased to $1.355 billion from $1.469 billion in the previous year. Utilities and energy saw a decline in operating profitability to $632 million from $739 million in the previous year.
The company’s investment gains from publicly traded companies are included in the overall Berkshire earnings, which more than doubled from the same period last year to $37.57 billion during the quarter. The total profits for the entire year were $96.22 billion.