Berkshire Hathaway annual earnings at record high, Warren Buffet favours buybacks

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‘Internal opportunities deliver far better returns than acquisitions,’ writes CEO Warren Buffett in his annual letter to shareholders

Berkshire also signalled renewed confidence in its own stock, repurchasing US$6.9-billion in the quarter, and boosting total buybacks in 2021 to a record $27-billion. Buffett said Berkshire has repurchased another $1.2-billion of stock in 2022.

He also expressed confidence in Berkshire’s dozens of operating businesses such as the BNSF railroad and Geico auto insurer, after having gone six years since a major acquisition and letting Berkshire’s cash stake swell to $146.7-billion.Quarterly operating income rose 45 per cent to $7.29-billion, or approximately $4,931 per Class A share, from $5.02-billion a year earlier.

Net income rose 11 per cent to $39.65-billion from $35.84-billion, with both totals reflecting large gains from stocks such as Apple Inc. Apple alone represents 46 per cent of the $350.7-billion of stocks that Berkshire owns. Buffett considers net income a misleading performance measure because it includes gains and losses from stock holdings, regardless of what Berkshire buys or sells.

 

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globebusiness Buffett. This is a disgrace.

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