Stock gains power Buffett's Berkshire Hathaway to higher profit

Warren Buffett's Berkshire Hathaway Inc on Saturday said quarterly operating income rose 14%, aided by improved results from its insurance businesses, while soaring prices of stock holdings such as Apple Inc led to a nearly $36 billion overall profit. Fourth-quarter operating income rose to $5.02 billion, or approximately $3,252 per Class A share, from $4.42 billion, a year earlier.

Reuters | Updated: 01-03-2021 10:57 IST | Created: 27-02-2021 19:16 IST
Stock gains power Buffett's Berkshire Hathaway to higher profit

Warren Buffett's Berkshire Hathaway Inc on Saturday said quarterly operating income rose 14%, aided by improved results from its insurance businesses, while soaring prices of stock holdings such as Apple Inc led to a nearly $36 billion overall profit.

Fourth-quarter operating income rose to $5.02 billion, or approximately $3,252 per Class A share, from $4.42 billion, a year earlier. Net income, reflecting the stock gains, rose 23% to $35.84 billion from $29.16 billion a year earlier.

For all of 2020, operating income fell 9% to $21.92 billion, while net income fell 48% to $81.42 billion. Berkshire, whose shares trailed the broader market over the last decade and significantly in 2019 and 2020, repurchased about $9 billion of stock in the quarter, a sign Buffett considers his Omaha, Nebraska-based conglomerate undervalued.

For all of 2020, Berkshire said it bought back $24.7 billion of its own stock, topping its old record $5 billion in 2019. "At a discount of 40% to intrinsic value, the repurchases looked extraordinarily compelling," said Tom Russo, a partner at Gardner, Russo & Gardner in Lancaster, Pennsylvania, a longtime Berkshire shareholder. "Repurchases capture forever the benefits of Berkshire's businesses for the remaining shareholders."

Berkshire stock has risen 4.8% this year, beating the Standard & Poor's 500's 1.5% gain.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

Viral variants and vaccine nationalism pose two-pronged threat to Covid victory

... ...

Tracking Fintech during COVID-19: Harnessing power of technology

Its abundantly clear now that as fintech cements its place in the financial sector, accelerated further by the COVID-19 pandemic, it could open the sector to new possibilities by harnessing the power of technology to deliver financial ...

Tectonic turns: How technology shaped healthcare over the decades

Tracing an episodic evolution, with technology at the interface of human and his health....

World Water Day sees crises of inequality in countries both rich and poor

... ...

Videos

Latest News

Vera Gedroits: Google Doodle to tribute Russian surgeon & professor on her 151st birthday

Happy Birthday, Vera GedroitsToday Google dedicates a beautiful doodle to celebrate Russian surgeon, professor, poet, and author Dr. Vera Gedroits on her 151st birthday. Dr. Gedroits is credited as the countrys first female military surgeon...

Australia-New Zealand travel bubble brings relief, elation

Elation marked the opening on Monday of a long-anticipated travel bubble between Australia and New Zealand.The start of quarantine-free travel was a relief for families who have been separated by the coronavirus pandemic as well as to strug...

Families reunite as Australia-New Zealand 'travel bubble' begins

Hundreds of passengers from Australia began arriving in New Zealand airports on Monday after authorities reopened borders, a pandemic milestone that allows quarantine-free travel between the countries for the first time in over a year. Thou...

Rugby-New Zealand's Highlanders launch probe after fans injured in stadium fall

The Otago Highlanders have launched an inquiry after multiple fans were injured in a fall at their home stadium in Dunedin on Friday during the Super Rugby Aotearoa match against the Auckland Blues. Video posted online showed several fans a...

Give Feedback