Knows How To Handle Money: Warren Buffett
Photo: ALEX WONG / AFP
Berkshire Hathaway bought back its own shares in 2020 for more money than ever before.
Overall, the conglomerate spent 24.7 billion dollars (20.5 billion euros) on this type of course maintenance, as the annual report published on Saturday emerged.
In the fourth quarter, Warren Buffett's investment company put $ 9 billion in its own shares, which was almost exactly the record volume from the previous quarter.
Berkshire Hathaway was able to increase net profit strongly at the end of the year.
While many other companies restricted their share buybacks due to scarcer funds in the corona pandemic, Buffett got off to a good start with his holding company despite the crisis.
In view of the enormous cash reserves on which the holding company of the 90-year-old star investor sits, no restraint is necessary.
At year-end Berkshire Hathaway had cash and cash equivalents of $ 138.3 billion, and in the final quarter its cash holdings fell five percent.
Buffett has never made a secret of the fact that he would rather invest in equity investments than share buybacks, but he cannot find any suitable takeover targets.
"Never bet against America!"
Berkshire increased net income 23 percent in the fourth quarter to $ 35.8 billion, and for the full year earnings fell nearly half to $ 42.5 billion.
Since unrealized investment gains and losses have to be reported since a change in accounting rules, this says little about the actual business.
In addition to the quarterly and annual figures, Buffett also published his letter to shareholders, which has always been eagerly awaited in the financial markets.
He did not comment directly on controversial topics such as politics or pandemics.
Buffett once again reiterated his belief in the US economy and warned investors, "Never bet against America!"
Berkshire Hathaway owns around 90 companies, plus various blocks of shares in large listed corporations such as Coca-Cola and Apple.
The computer company is one of Buffett's biggest favorites, his 5.4 percent stake in him was last worth $ 120 billion, although he had recently reduced the stake somewhat.
Buffett has run Berkshire Hathaway for over half a century.
"Forbes" recently estimated Buffett's personal fortune at around $ 92 billion.
According to the US magazine, he is the fourth richest person in the world.
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cbu / dpa