Legendary US investor Warren Buffett’s Berkshire Hethaway conglomerate has once again reported record profits. Net income doubled to $37.57 billion in the fourth quarter, Berkshire announced on Saturday. This brings the annual profit to $96.2 billion and exceeds the old record from 2021 by around $6.3 billion. Operating profit rose by 21 percent to 37.4 billion.
Buffett assured investors that Berkshire would be a good investment in the long term. The $900 billion conglomerate has become a fortress that can withstand even an unprecedented financial collapse. “Berkshire is built to last,” the 93-year-old wrote in the letter to shareholders. However, he dampened expectations for the share price. The enormous size of the company leaves “no possibility for breathtaking performance”.
Buffett confirmed that the current deputy CEO Greg Abel would succeed him one day. Buffett also spoke warmly about former Berkshire co-boss Charlie Munger, who died in November at the age of 99. Munger once urged him to “buy wonderful companies at fair prices rather than fair companies at wonderful prices.” Berkshire is currently sitting on cash balances of $167.6 billion – a record amount. This is also due to Berkshire’s reluctance to make large acquisitions at inflated prices.