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Record-breaking! Berkshire repurchases $21 billion in stocks for 2021

Key Highlights:

  • Berkshire’s operating earnings that encompass profits from the several businesses owned have totaled $7.285 billion in Q4 of 2021.
  • The company has made 45% higher profit as compared the previous year profits.
  • Berkshire Hathaway has accounted for $89.795 billion overall earnings which are double the profit of 2020.

Berkshire Hathaway has recorded profits in Q4 for the year 2021 despite the pandemic economic slowdown. Warren Buffet has bought back a record amount of Berkshire shares in 2021.

Berkshire’s operating earnings that encompass profits from the several businesses owned have totaled $7.285 billion in Q4 of 2021. The same was confirmed by the official report released by the company. The said profit is 45% higher than last year’s profit of $5.021 billion.

Berkshire buy back shares in Q4

Berkshire invested $6.9 billion in repurchasing the shares in Q4 bringing the stock repurchases value to $27 billion for 2021. This is a record high for the company as compared to the repurchased made in 2020 amid the pandemic challenged economy.

Warren Buffet and Vice Chairman Charlie Munger find share repurchases the best way to deploy cash at this time. A letter explaining this move was released by Buffet, it read “Through that simple act, we increase your share of the many controlled and non-controlled businesses Berkshire owns. When the price/value equation is right, this path is the easiest and most certain way for us to increase your wealth.

The overall earnings reflecting Berkshire’s fluctuating equity investments were also released and accounted for $39.646 billion for the quarter. This is 10% higher than the previous year.

Berkshire downplaying gains/losses

Berkshire downplaying the importance of quarterly changes, commented, “The amount of investment gains/losses in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules.”

Meanwhile, Berkshire’s railroad, utilities and energy business jumped 12.3% to $2.241 billion and, the insurance-underwriting business earned $372 million. The earnings report has also confirmed that Berkshire’s share has surged at a record high in 2021, by 7%.

Berkshire has recorded full-year earnings at $89.795 billion, which is more than double of 2020 total of $42.521 billion.

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