Berkshire Hathaway Q4 Profits For 2018 Revealed

Berkshire Hathaway Inc. (BRK.B) posted fourth-quarter 2018 earnings of $5.7 billion. Operating earnings fell by 3.2% year over year, primarily due to weaker performance in the company’s Railroad, Utilities, and Energy segment. Additionally, expenses rose by 2.9% year over year. Despite these changes, Berkshire Hathaway Inc. still delivered a profit that was above market expectations.

The company’s profits are a reflection of the performance of its huge investment portfolio. The company’s official filings contain a line titled “investment and derivative contracts.” The revenues from these investments are highly dependent on stock market fluctuations. As a result, Berkshire’s quarterly results may not reflect the company’s performance.

Berkshire Hathaway continues to stick to its investing formula. The company recently increased its stake in Ally Financial, a lender that specializes in auto loans. Berkshire also boosted its stake in Paramount Global by 13%. The company’s new streaming service, Paramount+, will soon compete with Netflix, Disney+, and Amazon Prime. The company also has a large stake in Apple.

Berkshire Hathaway filed its second-quarter operating results in the 10-Q filing. The 10-Q filing also revealed the company’s share-buyback activity. Berkshire Hathaway’s consolidated shareholders’ equity rose by 5.3% from the end of last year. Meanwhile, the company’s cash flow rose by 2.8%, to $39.8 billion.

Investors have continued to invest in Berkshire Hathaway’s stock, which is worth $62.1 billion. Berkshire shareholders are confident in the leadership of Warren Buffett and Charlie Munger. The company’s board passed a new stock buyback program on July 17, 2018.