Berkshire Hathaway reported record annual profits Saturday as its Chairman and CEO Warren Buffett warned Washington in his annual letter to shareholders to spend the money wisely — and remember those who get the “short straws in life.”
After bragging that Berkshire Hathaway had paid “far more in corporate income tax than the U.S. government had ever received from any company – even the American tech titans that commanded market values in the trillions,” the 94-year-old billionaire added his own two cents.
“Uncle Sam … spend it wisely … never forget that we need you to maintain a stable currency and that result requires both wisdom and vigilance on your part,” wrote Buffet.
Buffet’s conglomerate paid $26.8 billion in tax last year, the letter reveals.
“I thought honestly in a very subtle way that was a powerful message,” said CFRA Research analyst Cathy Seifert.
The Oracle of Omaha also celebrated the successes of his business in the 60 years since he took over what was a struggling New England textile company and began converting it into a massive conglomerate.
The company he acquired in 1965 was doing so poorly that it had not been required to pay income tax for a decade, “an embarrassment,” wrote Buffett as he continued flexing over the amount of tax the company forked over.
Berkshire now holds $334.2 billion cash, after selling off much of its Apple and Bank of America stock in the past year — almost double the $167.6 billion cash reserve it held a year ago.
In the fourth quarter, Berkshire earned $19.69 billion profit, or $13,695 per Class A share, a little more than half the $37.57 billion, or $26,043 per Class A share, it reported in the 2023 fourth quarter.
Operating earnings, however, leaped to $14.5 billion, or $10,102.07 per Class A share, up 70% from 2023’s $8.5 billion, or $5,878.21 per A share and well ahead of analyst’s predictions for operating earnings of $6,932 per share.
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