- ORIGINAL NEWS
Berkshire Hathaway operating earnings jump 28% in the fourth quarter, cash pile surges to record
- SUMMARY
Berkshire Hathaway reported a significant increase in operating earnings for the fourth quarter of 2023 and the full year, primarily driven by a surge in its insurance business.
The company’s remarkable cash pile also reached a record high.
Highlights: – Operating earnings rose by 28% in the fourth quarter to $8.481 billion, surpassing the $6.625 billion earned in the same period in 2022.
– The full year saw a 17% increase in operating earnings, reaching $37.350 billion, compared to $30.853 billion in the previous year.
– Berkshire’s cash on hand expanded to $167.6 billion, breaking the previous record of $157.2 billion held in the third quarter of 2023.
– The company’s automotive insurer, Geico, reported a profitable year, benefiting from higher premium rates and lower claims.
– Berkshire’s railroad operations, Burlington Northern Santa Fe (BNSF), faced a decline in earnings, partially offset by gains in the insurance sector.
– Insurance underwriting soared by 430% in the fourth quarter, contributing to a substantial increase in overall earnings.
– Berkshire reiterates its perspective that quarterly investment gains and losses may not accurately reflect the economic performance of its operating businesses.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“Berkshire Hathaway on Saturday reported a big rise in operating earnings in the fourth quarter, thanks to huge gains in its insurance business, while its cash pile expanded to record levels.”
“Operating earnings rose to $37.350 billion in 2023, up 17% from $30.853 billion in the prior year.”
Negative
“Operating earnings from railroads fell in the fourth quarter, as it did in utilities and energy.”
“Burlington Northern Santa Fe (BNSF) reported full-year net earnings of $5.087 billion last year, a 14% drop from $5.946 billion in the prior year.”