Categories: BusinessFront Page

Berkshire Hathaway: Warren Buffett’s investment company reports record profit for 2013

Berkshire Hathaway, the investment company run by Warren Buffett, has reported a record $19.5 billion profit for 2013, up from $14.8 billion in 2012.

Warren Buffett wrote to shareholders: “On the operating front, just about everything turned out well for us last year – in some cases very well.”

However, Berkshire Hathaway underperformed the S&P 500 share index for the fifth year in a row.

The growth in the company’s book value – the company’s assets minus its liabilities and Warren Buffett’s preferred measure of Berkshire’s performance – was 18.2% in 2013, while the S&P 500 rose 32.4%.

Warren Buffett said that was to be expected when the S&P performed well.

“We have underperformed in 10 of our 49 years, with all but one of our shortfalls occurring when the S&P gain exceeded 15%.”

Warren Buffett’s investment company Berkshire Hathaway has reported a record $19.5 billion profit for 2013

He added that the fund had outperformed the stock market between 2007 and 2013 and that through a full six year cycle he expected to do that again.

“If we fail to do so, we will not have earned our pay,” he wrote.

Warren Buffett, ranked fourth on the Forbes rich list, pointed to a strong performance in the firm’s insurance, rail and energy businesses for the increase in profit.

These include the auto insurer Geico, General Reinsurance, Burlington Northern Santa Fe railroad and the electric utility MidAmerican Energy.

Berkshire Hathaway increased its stake in the US companies Coca-Cola, American Express, IBM and Wells Fargo but reduced its ownership in the UK retailer Tesco – to 3.7% from 5.2%.

Warren Buffett did acknowledge he had made mistakes in some of his investments in the manufacturing, service and retail industries, some of which saw “very poor returns”.

“I was not misled: I simply was wrong in my evaluation of the economic dynamics of the company or the industry in which it operated,” he said.

VOQ5rJDO784
Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

Donald Trump and Elon Musk Celebrate Election Victory at UFC 309

Image source: Wikimedia Commons President-elect Donald Trump celebrated his election victory at the Ultimate Fighting…

5 days ago

White House 2024: Donald Trump Wins, Kamala Harris Calls Him to Concede Election

Millions of voters across the US chose to return Donald Trump to the White House…

2 weeks ago

Who Won? Donald Trump Declares Victory as He Addresses Jubilant Supporters in Florida

Donald Trump declares victory in the US election as he addresses jubilant supporters in Florida.…

2 weeks ago

Stocks Soaring as Donald Trump Closes in on US Victory

Stocks around the world are rising as Donald Trump appears to be on the cusp…

2 weeks ago

Who Won? Kamala Harris Cancels Election Night Party as Path to Victory Narrows

Donald Trump has won Pennsylvania, North Carolina and Georgia and taken a lead over Kamala…

2 weeks ago

Quincy Jones Dead at 91

Quincy Jones, the celebrated musician and producer who worked with Michael Jackson, Frank Sinatra, Ray…

2 weeks ago