©Reuters.
Investing.com — Stocks berkshire hathaway (NYSE:) Shares soared in pre-market trading in the U.S. on Monday after Warren Buffett's investment giant posted record operating profits for 2023.
Omaha, Nebraska-based Berkshire reported a record operating profit of $37.4 billion in 2023, helped in part by a 28% increase in fourth-quarter profit to $8.48 billion. reported.
Earnings were boosted by solid profits from Berkshire-owned auto insurer Geico, which posted full-year net underwriting income of $5.43 billion. Higher borrowing costs also generated $6.1 billion in interest income for the company's insurance division, more than the $5.5 billion it earned from stock dividends.
In the fourth quarter, Berkshire, whose decisions are closely watched by Buffett, was a net seller of stocks as Mr. Buffett struggled to find deals at attractive prices. Berkshire's cash pile has ballooned to a record $167.6 billion.
Meanwhile, Buffett, 93, moved to reassure investors that Berkshire is “built to withstand” even the worst of the financial crisis. He added that Greg Abel, Berkshire's vice chairman and his designated successor, is “ready in every way to be CEO.” […] tomorrow. “
However, Buffett said in his annual shareholder letter released over the weekend that Berkshire's stock is already so large that we likely won't see a “spectacular” performance. He said only a handful of companies can “make a difference” at Berkshire, and “those companies have been picked up endlessly by us and other companies.”
Buffett also took time to honor his longtime colleague Charlie Munger, who died in November at the age of 99. Buffett called him Berkshire's “architect.”
