Berkshire Hathaway Inc, the conglomerate run by legendary investor Warren Buffett, posted a record operating profit for the year ended December 31, 2020.
The company reported an operating profit of $37.9 billion, a 16% increase from the previous year. The gain was driven by strong performance from its insurance, railroad, and energy businesses.
Berkshire’s insurance operations posted a pre-tax gain of $5.2 billion, a 14% increase from the previous year. This was driven by a decrease in loss and loss adjustment expenses, as well as an increase in float income.
Berkshire’s railroad business, BNSF, reported a pre-tax gain of $3.2 billion, a 13% increase from the previous year. This was driven by higher volumes, improved pricing, and cost savings.
Berkshire’s energy business reported a pre-tax gain of $1.7 billion, a 16% increase from the previous year. This was driven by higher commodity prices and increased production.
Overall, Berkshire’s pre-tax earnings rose to $48.6 billion, a 14% increase from the previous year. The company’s net income also rose to $36.3 billion, a 17% increase from the previous year.
The strong performance of Berkshire’s businesses is a testament to the strength of Warren Buffett’s investing acumen. Despite the economic uncertainty caused by the coronavirus pandemic, Berkshire was able to post record profits. This is a testament to Buffett’s long-term investing strategy, which has enabled him to capitalize on market opportunities while avoiding significant losses.
It is clear that Berkshire Hathaway remains a powerful force in the investing world, and that Warren Buffett’s investment strategy continues to be a winning one.