Berkshire Hathaway

Performance indicators

2024

Growth of free cash to $325 billion or 28% of the value of the company's assets

At the end of October, 2024 Buffett said that in the third quarter he continued to reduce his position in Apple, and other stocks, which brought Berkshire Hathaway, a vast industrial and insurance conglomerate that he has controlled since 1965, $97 billion.

Buffett raised Berkshire's cash level to unprecedented heights. Cash in the amount of $325 billion represents about 28% of the value of Berkshire assets - this is the highest figure since at least 1990. And his followers are trying to determine the motives for the sale.

Earlier, Berkshire Hathaway Inc. cash reached another record in the first quarter of 2024, as billionaire investor Warren Buffett faced a shortage of large deals. The company's operating profit also rose, helped by the acquisition of insurance companies.

At the end of the first quarter, the company's fortune increased to $189 billion, exceeding the record set at the end of 2023.

Market capitalization $1 trillion

In August 2024, Berkshire Hathaway's market capitalization exceeded $1 trillion for the first time.

2023: Growth of operating profit in Q2 to $10 billion and accumulated cash to $147 billion

Warren Buffett's Berkshire Hathaway reported an increase in operating profit to $10.04 billion in the second quarter of 2023, thanks to an increase in insurance activity.

Berkshire performed better despite Buffett warning at its Omaha annual shareholder meeting in May that revenue for most of its operating divisions could decline this year as an "incredible period" for the U.S. economy nears an end.

Still, the US Fed's aggressive pace of rate hikes has helped the company generate greater returns on cash it accumulates mostly in short-matured US Treasuries. In the reporting quarter, accumulated cash reached US $147.4 billion, the second highest since 2014.

2022: 7th in the world in terms of capitalization

As of March 11, 2022

2021: Company# 3 by Global Net Profit

Net profit for 2021 in billions of dollars of eight leading public companies in the world. Data: Forbes Global 2000, Source: Statista

History

2024

Cut Bank of America stake to 10.5%

On September 24, 2024, Warren Buffett-owned Berkshire Hathaway sold another $863 million stake in Bank of America. Berkshire now owns a 10.5% stake in the second-largest American bank after selling in the last 3 trading days.

The share of cash in the company's assets doubled to 25%

Warren Buffett's Berkshire Hathaway cash inventory from total assets rose to 25.0% in the second quarter of 2024. In just two years, that figure has more than doubled.

Cash + cash equivalents + Berkshire Hathaway short-term government bonds increased $88 billion in the second quarter of 2024 to $277 billion, a record high.

Buffett emerges from his positions in cash

Throughout the 2008 crisis, Buffett exited cash as much as possible and was maximally purchased in stock until the very end of the crisis, until 2010.

For more than 15 years he held all these shares and only in 2024 begins to go into cash again.

Sale of half of the company's stake in Apple

The reduction in Berkshire Hathaway's stake in Apple may be interpreted as a lack of confidence in its growth. Berkshire Hathaway Inc. in the second quarter of 2024 sold almost half of its stake. Now it is about $84 billion against $140 billion in March.

Reduction of share in BYD to 6.9%

Berkshire Hathaway in June 2024 sold 1.3 million Chinese shares BYD listed in for Hong Kong HK $310.5 million ($39.8 million). That reduced the company's stake in BYD's issued H-shares to 6.90% from 7.02%.

Buying a stake in insurance company Chubb for $6.7 billion

Warren Buffett Berkshire Hathaway on May 15, 2024 announced the purchase of Chubb a $6.7 billion stake in the insurance company.

The conglomerate has been increasing its stake since 2023, but it has not previously been reported since the SEC allowed Berkshire to keep it private. Berkshire owns a range of insurance companies, including Geico.

Separate quarterly reports suggest Berkshire's stake in banks, insurance and financial companies is growing, while in other industries, including consumer goods, the company is retreating.

2023

Charlie Munger, longtime Berkshire Hathaway vice chairman and Warren Buffett's right-hand man, dies at 99

In late November 2023, Charlie Munger, the longtime vice chairman of Berkshire Hathaway and right-hand man of Warren Buffett, died. He was 99 years old.

"Berkshire Hathaway would not have been able to achieve its current state without Charlie's inspiration, wisdom and involvement," Buffett said in a statement.

Munger helped Buffett, who was seven years his junior, develop a philosophy for long-term investing in companies. Under their leadership, Berkshire made an average of 20.1% of profits annually between 1965 and 2021 - nearly twice as much as the S&P 500. Decades of multiple profit growth have made the pair billionaires and investor darlings.

Reduced investment in US blue chips and record cash exit

Warren Buffett's Berkshire Hathaway is getting rid of U.S. blue-chip stocks by November 2023. The conglomerate is selling off shares of General Motors and cutting stakes in HP and Chevron. Berkshire also sold small stakes in Johnson & Johnson and Procter & Gamble.

The cuts did not end there. Berkshire sold shares in Amazon, snack maker Mondelez International, and insurers Markel and Globe Life. In addition, the company withdrew from Activision Blizzard, closing the arbitration bid for the successful completion of the sale of the video game publisher to Microsoft.

The billionaire investor converted billions dollars from his sprawling conglomerate's stock portfolio into cash. Berkshire Hathaway's cash rose to a record $157.2 billion, helped by both elevated interest rates and a dearth of meaningful deals in which billionaire investor Warren Buffett could apply his money.

The amount of savings Berkshire mostly holds in short-term U.S. Treasuries hit its highest level since the third quarter of 2021. The conglomerate also reported operating profit of $10.76 billion, up from the previous year. The conglomerate also bought back $1.1 billion in shares.

2022

Bet on energy companies amid falling U.S. stock market

Berkshire Hathaway's CEO has long advised investors to "be greedy when others are scared." By May 2022, Warren Buffett is spending heavily amid sales in the US stock market. At this time, Berkshire Hathaway is betting on energy stocks amid soaring inflation.

The company bought 901,768 shares of Occidental Petroleum Corp. in early May 2022. The move is likely to make Occidental, whose shares Berkshire began buying in late February, one of the company's 10 largest holdings.

Over the past few months, Berkshire has also increased its stake in Chevron, bet on a merger-arbitration on Activision Blizzard, acquired an 11% stake in HP Inc. and continued to build its position in Apple, its largest stake.

Acquisition of an 11.4% stake in HP Inc.

The holding company Berkshire Hathaway, led by investor Warren Buffett, announced the acquisition of an 11.4% stake in HP Inc., whose total value at the exchange rate before the purchase was announced was about $4.2 billion. After the announcement, the rate rose by almost 10%. HP became another tech sector company after Apple, Snowflake and Activision Blizzard, whose shares were also acquired by Berkshire Hathaway. This became known on April 7, 2022. Read more here.

Investing in Brazilian digital bank Nubank

In mid-February 2022, it became known that Berkshire Hathaway Warren Buffett bought class A shares of a Brazilian bank Nubank in the amount of $1 billion. Increasing investments in crypto assets, the billionaire abandoned a number of traditional financial investments. In particular, Visa the corporation sold Mastercard more than $3 billion worth of paper. More. here

2021

Investing $500 million in digital bank Nubank

In early June, a digital bank with investments Yuri Milner Nubank attracted $750 million in investments, the company's valuation was $30 billion. The Series G investment round was led by the Berkshire Hathaway fund, which invested $500 million, as well as some other investors. More. here

Greg Abel named Warren Buffett receiver

In May 2021, legendary 90-year-old businessman and investor Warren Buffett first named the person who will replace him at the Berkshire Hathaway holding. It will be Berkshire Hathaway Vice Chairman Greg Abel. He joined Berkshire Hathaway in 1999 when the holding bought MidAmerican Energy. In 2008, Abel became CEO of the company.

"The board of directors agreed that if something happens to me today, then Greg becomes the person who will take over the next morning," Buffett said.

2020

43% of the stock portfolio - Apple shares

As of July 06, 2020, 43% of the total portfolio of Berkshire Hathaway shares are shares, Apple their size reached a record 90 billion. dollars

Loss of $55.5 billion in the quarter due to coronavirus

On May 2, 2020, Warren Buffett's Berkshire Hathaway conglomerate, amid the COVID-19 epidemic, revealed that its stock portfolio, which includes Apple, Bank of America, and other shares, had depreciated by $55.5 billion in the quarter

Shares of Berkshire itself have fallen 19% since the beginning of the year. That's worse than the S&P 500, which is down 12% year to date.

2018: Creating a health care company in conjunction with Amazon and JPMorgan Chase

On January 30, 2018, Amazon Berkshire Hathaway JPMorgan Chase and announced the creation of a joint medical company with the aim of improving the quality of healthcare and reducing the cost of medical services for its employees in. USA The name of the new legal structure has not been announced by the time of the announcement.

An independent non-profit organization has been created that will use cutting-edge technical solutions to provide high-quality health care to employees at affordable prices, the companies said in a joint statement.

Amazon, Berkshire Hathaway, JPMorgan Chase set up health care company

The company's board of directors will reportedly initially consist of Berkshire Hathaway Chief Investment Officer Todd Combs, JPMorgan Chase Managing Director Marvel Sullivan Berchtold, and Amazon Senior Vice President Beth Galetti. The remaining details, including the location of the head office and the names of the executives, are scheduled to be made public in the near future.

By the end of January 2018, the number of employees of Amazon, Berkshire Hathaway and JPMorgan Chase & Co. worldwide reaches 900 thousand people. According to Jamie Dimon, Chairman of the Board of Directors and CEO of JPMorgan Chase, this project may not only affect the staff of companies in the United States.

Together, we have tremendous resources and our goal is to create solutions that will benefit our employees, their families and, possibly, all Americans, "he said.

The cooperation of these largest corporations, each of which already has experience in this area, "will attract public attention" and "indicates dissatisfaction with the state of the existing health care system." Technology and data are supposed to play a big role in efforts by Amazon, Berkshire Hathaway and JPMorgan Chase & Co. to improve the health care system.^[1]

The group hopes to apply its combined capabilities and resources to take a new approach to these critical health issues, the statement said.

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