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BRK-B · BERKSHIRE HATHAWAY INC

28 filings

10-K

BRK-B 10-K Annual Reports

BERKSHIRE HATHAWAY INC - 28 annual reports

Filing record · 2016–202610-K1110-Q328-K81

2025
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2025
Berkshire Hathaway Inc.'s (BRK-B) fiscal year 2025 demonstrated robust performance across its diverse business segments. The insurance operations, a cornerstone of Berkshire's portfolio, generated substantial underwriting earnings and investment income. Burlington Northern Santa Fe (BNSF) and Berkshire Hathaway Energy (BHE) continued to be significant contributors, with BNSF showing improved operating efficiencies and BHE expanding its energy infrastructure and renewable energy investments. The manufacturing, service, and retailing segments collectively delivered solid earnings, with notable performance in industrial products and a mixed but overall positive result across services and retail operations. Financially, Berkshire maintained a strong capital base and ample liquidity. The company continued its strategy of reinvesting earnings and selectively repurchasing shares when deemed attractive. Despite some headwinds such as increased costs for certain raw materials in manufacturing and ongoing litigation accruals in BHE's real estate brokerage business, the overall financial health and diversified revenue streams of Berkshire Hathaway underscore its resilience and strategic financial management. The company remains well-positioned to navigate economic uncertainties and capitalize on future growth opportunities.
Mar 2, 2026
2024
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2024
Berkshire Hathaway Inc. (BRK-B) reported a strong financial performance for the year ending December 31, 2024, with net earnings attributable to shareholders reaching $88.995 billion, a slight decrease from $96.223 billion in 2023. This was largely driven by significant investment gains in 2024, which offset softer performance in some operating segments. The insurance businesses demonstrated robust underwriting results, particularly GEICO, which significantly improved its profitability compared to the prior year, although overall insurance underwriting benefited from favorable prior accident year developments. BNSF and Berkshire Hathaway Energy (BHE) reported slight decreases in after-tax earnings year-over-year, impacted by specific charges and market conditions. The manufacturing, service, and retailing segments experienced a modest decline in earnings, impacted by varied performance across its diverse portfolio, with some areas showing strength and others facing headwinds. Berkshire Hathaway ended the year with substantial liquidity, holding $318 billion in cash, cash equivalents, and U.S. Treasury Bills. The company continued its share repurchase program, demonstrating a commitment to returning capital to shareholders when shares are deemed undervalued. Management remains focused on financial strength, prudent capital allocation, and the long-term intrinsic value of its businesses.
Feb 24, 2025
2023
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2023
Berkshire Hathaway Inc. (BRK-B) reported strong net earnings of $96.2 billion for the fiscal year ended December 31, 2023, a significant turnaround from a net loss of $22.8 billion in the prior year. This turnaround was largely driven by a substantial increase in investment and derivative contract gains, which swung from a loss of $67.9 billion in 2022 to a gain of $74.9 billion in 2023. The company's diverse operations, including insurance, freight rail (BNSF), utilities and energy (BHE), manufacturing, service, and retailing businesses, collectively contributed to the robust financial performance. The insurance underwriting segment also showed a strong recovery, reporting pre-tax earnings of $6.9 billion in 2023, compared to a loss of $22 million in 2022, benefiting from lower catastrophe losses and improved results at GEICO. BNSF's earnings saw a decline, while BHE's earnings were significantly impacted by increased wildfire loss estimates. Despite these challenges, Berkshire Hathaway's overall financial position remains exceptionally strong, with significant cash reserves and a commitment to capital allocation through share repurchases.
Feb 26, 2024
2022
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2022
Berkshire Hathaway Inc. (BRK-B) reported a net loss attributable to shareholders of $22.8 billion for the year ended December 31, 2022. This significant loss was largely driven by substantial investment and derivative contract losses totaling $67.9 billion, primarily due to market volatility in equity securities. Despite the net loss, the company's diverse operating businesses demonstrated resilience, with strong performance in insurance investment income, utilities and energy, and manufacturing, service, and retailing segments. The insurance underwriting segment experienced a slight loss of $90 million, impacted by catastrophe events and increased claims frequencies and severities at GEICO. However, positive investment income within the insurance segment significantly offset underwriting results. Key strategic moves during the year included the acquisition of Alleghany Corporation for $11.5 billion, which expanded its property and casualty reinsurance and insurance operations. Berkshire also continued its share repurchase program, demonstrating a commitment to returning value to shareholders. The company maintains a strong financial position with substantial liquidity and significant equity, although the balance sheet reflects a decrease in shareholders' equity due to investment market fluctuations. Management anticipates that certain businesses, like GEICO, may return to profitability in the upcoming year.
Feb 27, 2023
2021
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2021
Berkshire Hathaway Inc.'s 2021 10-K filing reveals a robust year of growth and profitability, driven by strong performance across its diverse business segments, particularly insurance, manufacturing, service, and retailing. Despite ongoing global supply chain disruptions and inflationary pressures that impacted some manufacturing and service businesses, the company demonstrated resilience. Net earnings attributable to Berkshire Hathaway shareholders reached $89.8 billion, significantly up from $42.5 billion in 2020, bolstered by substantial investment and derivative gains. The insurance underwriting segment also showed improved profitability, with net underwriting earnings of $728 million, reflecting favorable prior year loss development. The company continues to prioritize financial strength and liquidity, maintaining substantial cash reserves while actively engaging in share repurchases. Berkshire Hathaway's decentralized management structure allows its subsidiaries to operate autonomously, contributing to the overall strength and adaptability of the conglomerate.
Feb 28, 2022
2020
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2020
Berkshire Hathaway Inc. (BRK-B) reported solid performance in its 2020 10-K filing, showcasing a diverse and resilient conglomerate. Despite the challenges posed by the COVID-19 pandemic, the company demonstrated its ability to generate substantial earnings, largely driven by its insurance operations and significant investment gains. GEICO, a major insurance subsidiary, experienced a notable increase in underwriting earnings due to reduced claims frequency amidst lower driving during the pandemic, although this was partially offset by premium credits provided to policyholders. The company's substantial investment portfolio, heavily weighted towards equity securities, generated significant unrealized gains, contributing substantially to overall net earnings. Berkshire Hathaway Energy also showed resilience, with steady earnings from its regulated utility businesses. The railroad segment, BNSF, experienced a revenue decline due to lower shipping volumes but maintained profitability, supported by cost controls. The manufacturing, service, and retailing segments faced varied impacts from the pandemic, with some sectors experiencing significant declines offset by strengths in others, such as consumer product demand for certain categories. Overall, Berkshire Hathaway's decentralized structure and strong financial position enabled it to navigate a challenging economic environment effectively.
Mar 1, 2021
2019
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2019
Berkshire Hathaway Inc. (BRK-B) demonstrated strong financial performance in 2019, driven by significant gains in its investment portfolio, particularly in equity securities. Total revenues reached $254.6 billion, with net earnings attributable to shareholders soaring to $81.4 billion. This substantial increase in net earnings was largely due to a significant after-tax unrealized gain of $57.4 billion on investments, reflecting the company's strategic allocation towards a concentrated portfolio of public equities. The insurance businesses, a core pillar of Berkshire's operations, generated positive underwriting results and substantial investment income. Berkshire's diverse business segments, including railroads (BNSF), utilities (Berkshire Hathaway Energy), manufacturing, service, and retailing, all contributed to the overall financial strength. While BNSF saw a slight revenue dip, its pre-tax earnings increased due to operating efficiencies and cost control. The utilities segment also reported higher earnings, benefiting from favorable regulatory mechanisms and improved operational performance. The company's capital allocation strategy, including share repurchases, remained a key focus, with $5.0 billion in shares repurchased in 2019. Berkshire maintained a robust liquidity position, with significant cash and cash equivalents, underscoring its financial resilience.
Feb 24, 2020
2018
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2018
Berkshire Hathaway Inc.'s 2018 10-K filing highlights a diversified conglomerate with significant operations across insurance, railroads, utilities, manufacturing, services, and retailing. The company generated total revenues of $247.8 billion for the year ended December 31, 2018, demonstrating the breadth of its business activities. Despite a significant investment loss of $17.7 billion after tax, largely driven by market fluctuations in equity securities under new accounting standards, Berkshire Hathaway reported net earnings attributable to shareholders of $4.0 billion. This performance reflects the company's resilient business model, which is managed on a decentralized basis, allowing individual operating units to focus on their specific markets while benefiting from Berkshire's capital allocation expertise.
Feb 25, 2019
2017
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2017
Berkshire Hathaway Inc. (BRK.B) demonstrated robust financial performance in its 2017 10-K filing, underscored by significant growth in its diverse business segments, including insurance, railroads, utilities, and manufacturing. The company's net earnings saw a substantial increase, largely due to the one-time benefit from the Tax Cuts and Jobs Act of 2017, which added approximately $29.1 billion to its results. Excluding this significant tax impact, the core operating businesses also showed positive trends, driven by increased revenues and improved operational efficiencies across several sectors, particularly in manufacturing and services. The insurance operations, a cornerstone of Berkshire's business, experienced underwriting losses in 2017, primarily attributed to significant catastrophe losses from major hurricanes and wildfires. However, investment income from these segments remained strong, contributing positively to overall results. The railroad segment, BNSF, reported increased earnings driven by higher unit volume and improved average revenue per unit. The utilities and energy segment also showed resilience, despite some headwinds like debt prepayment charges, with overall earnings remaining solid. Berkshire's significant concentration of equity investments presents both opportunities and risks, with a substantial portion of its portfolio concentrated in a few large issuers. The company continues to emphasize financial strength, maintaining substantial liquidity and a strong capital base across its subsidiaries. Management anticipates that the growth rate of book value per share may slow due to the company's large size, but remains committed to long-term value creation through prudent capital allocation and strategic acquisitions.
Feb 26, 2018
2016
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2016
Berkshire Hathaway Inc. (BRK-B) reported strong financial performance for the fiscal year ending December 31, 2016. The company experienced growth across its diverse business segments, including insurance, railroads, utilities and energy, manufacturing, service, retailing, and finance. Total revenues increased, driven by higher insurance premiums earned and robust sales from its manufacturing, service, and retailing operations. Net earnings attributable to Berkshire Hathaway shareholders remained substantial, reflecting both operational performance and significant investment gains. The company's insurance businesses, a core component of its operations, continued to demonstrate resilience, with underwriting gains and substantial investment income. GEICO, in particular, saw increased premiums written and earned. BNSF Railway navigated a challenging environment with lower volumes but maintained profitability. Berkshire Hathaway Energy reported increased earnings, benefiting from rate increases and lower operational costs. The company's extensive manufacturing, service, and retailing segments, bolstered by strategic acquisitions like Precision Castparts (PCC) and Duracell, also contributed positively to overall results. The report highlights Berkshire's consistent financial strength, substantial liquidity, and commitment to shareholder value.
Feb 27, 2017
2015
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2015
Berkshire Hathaway Inc. (BRK-B) reported strong financial performance for the fiscal year ended December 31, 2015. The company demonstrated significant growth across its diverse business segments, including insurance and reinsurance, railroad, utilities and energy, manufacturing, service, and retailing. Net earnings attributable to Berkshire Hathaway shareholders reached $24.08 billion, a notable increase from the previous year. This growth was driven by robust operating results from its core businesses, particularly the insurance and railroad segments, as well as favorable investment and derivative gains. The company maintained a strong financial position with consolidated shareholders' equity increasing to $255.6 billion, underpinned by substantial cash reserves and a well-capitalized insurance operation. Berkshire Hathaway's decentralized management structure continues to yield positive results, with operating businesses demonstrating solid performance. The company strategically deployed capital through acquisitions and organic growth initiatives. Notably, the acquisition of Van Tuyl Group (now Berkshire Hathaway Automotive) and AltaLink were significant contributors to revenue growth. Looking ahead, Berkshire Hathaway remains focused on long-term value creation, maintaining financial strength, and pursuing opportunities that align with its established investment philosophy.
Feb 29, 2016
2014
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2014
Berkshire Hathaway Inc. reported strong financial performance for the fiscal year ended December 31, 2014. The company's diversified business model, spanning insurance, railroads, utilities, manufacturing, service, retailing, and finance, contributed to robust revenue growth and profitability. Key drivers included solid underwriting gains in the insurance sector, increased earnings from the railroad and utilities segments, and continued growth across manufacturing, service, and retailing operations. Despite a notable increase in investment and derivative gains, the company's core operating businesses demonstrated resilience and growth, underscoring the effectiveness of its decentralized management approach and strategic capital allocation. Berkshire Hathaway maintained a strong financial position with total assets of $526.2 billion and shareholders' equity of $240.2 billion at year-end. The company continued to manage its capital effectively, focusing on maintaining significant liquidity and pursuing opportunities for share repurchases within its established parameters. The filing also highlights the company's ongoing investments in its various businesses, including capital expenditures for infrastructure and operational improvements, reflecting a commitment to long-term value creation.
Mar 2, 2015
2013
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2013
Berkshire Hathaway Inc.'s 2013 10-K report showcases a robust and diversified conglomerate. The company demonstrated strong performance across its core insurance operations, with significant underwriting gains, bolstered by solid investment income. The railroad segment, BNSF, and the utilities and energy businesses, primarily MidAmerican, both reported substantial earnings and saw revenue growth, contributing significantly to the overall results. Manufacturing, service, and retailing segments collectively showed increased earnings, partly due to strategic acquisitions and operational improvements. The finance and financial products division also contributed positively, driven by growth in manufactured housing and finance. Berkshire Hathaway continued its focus on capital preservation and opportunistic investments, with substantial cash reserves maintained. The company also highlighted its commitment to share repurchases, although no shares were repurchased in 2013, the program remained in place to be utilized when valuations were deemed attractive.
Mar 3, 2014
2012
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2012
Berkshire Hathaway Inc. reported robust performance for the fiscal year ending December 31, 2012. The company's diverse business segments, including insurance, railroads, utilities, and manufacturing, service, and retailing, all contributed to its strong financial results. Notably, the insurance segment demonstrated solid underwriting gains, while significant investment and derivative gains boosted overall net earnings. The company highlighted its continued financial strength, with substantial shareholders' equity and cash reserves. Berkshire also continued its practice of repurchasing its own stock, signaling management's confidence in the company's intrinsic value. Looking ahead, Berkshire announced its intention to invest in the acquisition of H.J. Heinz Company, indicating ongoing strategic growth initiatives.
Mar 1, 2013
2011
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2011
Berkshire Hathaway's 2011 annual report highlights a strong financial position characterized by diversified operations across insurance, railroads, utilities, manufacturing, service, and retailing sectors. The company demonstrated robust revenue growth driven by its insurance businesses, particularly GEICO and its reinsurance operations, alongside the significant contribution from the recently acquired BNSF railroad. Despite facing challenging economic conditions and a notable increase in catastrophe losses affecting underwriting results, Berkshire Hathaway maintained its commitment to financial strength and long-term value creation. The report emphasizes the company's decentralized management structure, its substantial capital base, and its focus on disciplined capital allocation. Key financial metrics indicate solid performance, with significant investment income generated from the "float" provided by its insurance operations. The company also initiated a share repurchase program, signaling confidence in its intrinsic value and commitment to returning capital to shareholders when opportunities arise at attractive valuations. Investors can take comfort in Berkshire Hathaway's enduring financial strength, diversified business model, and consistent management philosophy under Warren Buffett. The company's ability to generate substantial investment income from its insurance "float" and to deploy capital effectively across its various subsidiaries positions it well for continued long-term success. However, potential investors should remain aware of the inherent risks in the insurance and derivative businesses, as well as the concentration of key management personnel.
Feb 27, 2012
2010
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2010
Berkshire Hathaway Inc.'s (BRK-B) 2010 10-K filing reveals a year of significant growth and strategic expansion, notably the full acquisition of Burlington Northern Santa Fe (BNSF) in February 2010. This acquisition substantially increased the company's asset base and diversified its operations into the railroad sector. The company reported robust performance across its diverse subsidiaries, with strong underwriting results from its insurance operations, including GEICO and General Re. Manufacturing, service, and retailing segments also showed improvement, reflecting a gradual stabilization of economic conditions. Berkshire Hathaway maintained its strategy of decentralized management, allowing subsidiaries to operate with autonomy while benefiting from the conglomerate's strong financial position and capital allocation expertise. The company ended the year with substantial shareholders' equity and significant liquidity, positioning it well for future opportunities.
Feb 28, 2011
2009
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2009
Berkshire Hathaway Inc.'s (BRK-B) 2009 10-K filing highlights a year of resilience amidst economic challenges, showcasing the strength and diversification of its core businesses, primarily insurance and utilities. Despite the ongoing recession impacting manufacturing, service, and retailing segments, the company demonstrated robust underwriting results from its insurance operations and stable performance from its regulated energy businesses. Key financial performance indicators showed an increase in net earnings attributable to Berkshire Hathaway, reaching $8.055 billion, a significant rise from $4.994 billion in 2008. This growth was largely driven by a strong recovery in investment and derivative gains/losses, which swung from a substantial loss in 2008 to a gain in 2009. The company maintained a strong balance sheet, with shareholders' equity increasing to $131.1 billion. The filing also detailed significant strategic moves, including the near-completion of the acquisition of Burlington Northern Santa Fe (BNSF), a major railroad company, signaling a continued commitment to long-term value creation through strategic capital allocation. Investors can take comfort in Berkshire's diversified business model, its strong capital position, and its ability to navigate economic downturns. The company's commitment to maintaining exceptional capital strength within its insurance subsidiaries, coupled with disciplined underwriting and significant investment income, positions it favorably for future growth and stability. The report emphasizes a continued focus on prudent financial management and strategic investments.
Mar 1, 2010
2008
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2008
Berkshire Hathaway Inc.'s 2008 10-K filing reveals a company navigating a challenging economic environment, marked by significant declines in investment values and the impact of the global financial crisis. Despite these headwinds, Berkshire Hathaway's diverse business segments, particularly its insurance operations (GEICO and General Re), demonstrated resilience with solid underwriting gains. The company's substantial "float" from its insurance businesses continued to provide ample capital for investments. However, significant non-cash losses were recorded from equity index put option contracts and other-than-temporary impairments on certain investments, impacting overall net earnings. Management's focus remained on capital allocation, operational efficiency across its decentralized subsidiaries, and weathering the economic downturn through cost management. The company's strong financial position, characterized by significant cash reserves and shareholder equity, positioned it to manage through the uncertainty and pursue strategic opportunities.
Mar 2, 2009
2007
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2007
Berkshire Hathaway Inc.'s 2007 10-K report highlights a robust and diversified business empire, primarily driven by its substantial insurance operations. The company continued its strategy of disciplined underwriting, focusing on long-term profitability and maintaining exceptional capital strength across its insurance subsidiaries. Key acquisitions in 2006 and 2007, such as ISCAR Metalworking Companies and Russell Corporation, alongside the significant consolidation of MidAmerican Energy Holdings Company, broadened the company's reach and revenue streams. Financially, Berkshire demonstrated strong growth in total revenues and net earnings compared to the previous year, benefiting from favorable underwriting results in insurance, improved performance in utilities and energy, and growth across manufacturing, service, and retailing segments. The company's investment portfolio also saw substantial growth. Despite exposure to market risks and ongoing governmental investigations within certain insurance subsidiaries, Berkshire maintained a strong liquidity position and a solid capital base, underscoring its resilient financial health and strategic growth trajectory.
Feb 29, 2008
2006
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2006
Berkshire Hathaway's 2006 Form 10-K shows a company whose consolidated net earnings rose 29% to $11.0 billion ($7,144 per Class A equivalent share) on revenues of $98.5 billion, up from $81.7 billion. Shareholders' equity reached $108.4 billion (about $70,281 per Class A equivalent share, up from $59,377), and total assets grew to $248.4 billion. Results were helped by a $2.6 billion pre-tax investment and derivative gain, which is far below 2005's $5.5 billion, and by a $3.9 billion pre-tax swing in insurance underwriting, from a $1.6 billion underwriting gain in 2006 versus a $3.4 billion loss in 2005 caused by Hurricanes Katrina, Rita and Wilma. Investors should note that 2005 earnings were inflated by a $5.0 billion Gillette-to-P&G exchange gain, so year-over-year comparisons are distorted. The insurance franchise remains the core. Statutory surplus of U.S. insurers is about $59 billion, and float grew to roughly $51 billion. GEICO's auto underwriting was strong, with a 70.1% loss ratio and a pre-tax underwriting gain of $1.3 billion. The Berkshire Hathaway Reinsurance Group's catastrophe business carries a probable maximum loss of about $6 billion, a source of earnings volatility the company openly accepts. Non-insurance operations expanded through acquisitions totaling about $10.1 billion in cash, including PacifiCorp, which was folded into the consolidated MidAmerican utilities group (Berkshire owns 87.8%), and the Iscar Metalworking Companies (IMC), which was bought for $4.0 billion net of assets. Consolidating MidAmerican added roughly $16.9 billion of non-recourse utility debt to the balance sheet. The filing also flags material risks: ongoing governmental investigations of General Re's non-traditional and finite reinsurance business, including criminal charges against several former General Re executives, and a heavy dependence on Warren Buffett for investment decisions. Berkshire has not paid a cash dividend since 1967 and does not expect future book value growth to match its historical pace given the size of its capital base.
Mar 1, 2007
2005
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2005
Berkshire Hathaway Inc.'s 2005 10-K filing reveals a diversified conglomerate with a strong emphasis on its insurance and reinsurance operations, which form the core of its "float" for investment purposes. The company, led by Warren Buffett, demonstrated robust financial performance in 2005, with total revenues exceeding $81 billion. Key to its success is the decentralized management style, allowing subsidiaries significant operational autonomy while corporate headquarters focuses on capital allocation. The insurance segment, comprising GEICO, General Re, Berkshire Hathaway Reinsurance Group, and Berkshire Hathaway Primary Group, generated substantial investment income and underwriting gains, despite significant catastrophe losses from Hurricanes Katrina, Rita, and Wilma. The company's commitment to maintaining "exceptionally high" capital strength in its insurance subsidiaries, reflected in AAA and A++ ratings, underpins its competitive advantage. Beyond insurance, Berkshire Hathaway operates a wide array of non-insurance businesses, including apparel, building products, finance and financial products, flight services, McLane Company, retail operations, Shaw Industries, and utilities and energy. The company's strategic acquisitions, such as Clayton Homes and Medical Protective Company in recent years, continue to broaden its business portfolio. The filing also highlights the company's significant investments in publicly traded companies and its ongoing management of market risks, particularly those related to interest rates, equity prices, and foreign currency exchange rates.
Mar 13, 2006
2004
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2004
Berkshire Hathaway's 2004 10-K, filed March 15, 2005, shows a company whose earnings are driven by a large insurance franchise (GEICO, General Re, Berkshire Hathaway Reinsurance Group, and Primary Group) alongside a diversified non-insurance portfolio. Net earnings fell to $7.308 billion in 2004 from $8.151 billion in 2003, but the decline was largely due to lower investment gains; operating results were more mixed. Shareholders' equity rose to $85.9 billion, and book value per Class A equivalent share increased to $55,824 from $50,498. Management reported that insurance subsidiaries maintained statutory surplus of roughly $48 billion and that the parent's ratings (AAA at major subsidiaries) reflect exceptional capital strength. Underwriting results weakened sharply versus prior years. Hurricanes in the third quarter of 2004 produced substantial catastrophe losses, and General Re's North American property/casualty business earned only $11 million pre-tax, while BHRG's catastrophe exposure was highlighted as a source of potential volatility (with a $5 billion probable maximum loss from a California earthquake). Investment income declined 12.4% pre-tax to $2.824 billion, as Berkshire kept large cash balances ($40.0 billion at year end) in low-yielding instruments while awaiting acquisitions. Premium volume at General Re shrank materially, and management expects further declines in 2005, reflecting an increasingly price-competitive reinsurance market. Investors should also note several legal and regulatory matters: investigations involving General Re/General Reinsurance (Reciprocal of America, SEC and New York Attorney General inquiries on non-traditional products, and an Australian regulatory notice) and class actions at GEICO. Berkshire states it cannot predict outcomes or estimate losses. Subsequent events include the announced acquisition of Gillette by P&G, which Berkshire expects to generate an approximately $4.4 billion pre-tax gain, and the continued expansion of the Clayton Homes and finance businesses funded by medium-term notes.
Mar 15, 2005
2003
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2003
Berkshire Hathaway's 2003 10-K shows a company whose earnings are increasingly driven by insurance underwriting turning profitable and by a rapidly expanding non-insurance empire. Net earnings rose to $8.151 billion ($5,309 per Class A equivalent share) from $4.286 billion in 2002, while total revenues climbed 51% to $63.9 billion, largely due to the McLane, Clayton Homes, Fruit of the Loom and Garan acquisitions. Shareholders' equity reached $77.6 billion, or about $50,498 per Class A equivalent share, and the company carries $31.3 billion of insurance-and-other cash plus large equity holdings concentrated in a few names such as Coca-Cola, American Express, Gillette and Wells Fargo. The insurance franchise is a mixed picture. Underwriting swung to a $1.1 billion after-tax gain in 2003 from a $284 million loss in 2002, helped by the absence of major catastrophes, rate increases at General Re, and strong growth at GEICO, whose premiums earned rose 16.7%. However, management itself flags meaningful risk: General Re and BHRG carry large retroactive reinsurance reserves with heavy exposure to casualty and asbestos/environmental claims, prior-year reserve charges of $480 million were recorded, and the company estimates a single California earthquake could produce a $6.7 billion pre-tax loss. Investors should also note that the reported earnings include substantial realized investment gains ($2.7 billion after tax), which management explicitly says have no predictive value, and that roughly $3.8 billion of after-tax underwriting and investment results are sensitive to equity market prices. The 10-K also signals balance-sheet changes that matter for future reporting: Berkshire will consolidate Value Capital L.P. starting in 2004, adding roughly $18.5 billion of assets and liabilities without changing earnings, and it has taken on rising debt through Berkshire Hathaway Finance Corp. to fund Clayton Homes' lending. Berkshire has not paid a cash dividend since 1967, so shareholder returns continue to come entirely from share price appreciation and retained-earnings compounding.
Mar 12, 2004
2002
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2002
Berkshire Hathaway Inc.'s 2002 10-K filing reveals a strong financial performance, driven primarily by its diverse insurance operations and a growing stable of non-insurance businesses. The company demonstrates robust growth in both premiums earned and investment income, highlighting the effectiveness of its underwriting and investment strategies. Significant acquisitions in the apparel and building products sectors have broadened the company's revenue streams. Despite the impact of the September 11th terrorist attacks on the insurance industry, Berkshire Hathaway's substantial capital reserves and prudent risk management have enabled it to navigate these challenges effectively. The company's financial statements show a substantial increase in total revenues and net earnings, reflecting successful integration of acquired businesses and organic growth. Shareholder equity continues to grow, underscoring the company's long-term value creation strategy. The management's discussion and analysis emphasizes the strength of Berkshire's balance sheet, ample liquidity, and a disciplined approach to capital allocation, positioning the company for continued success.
Mar 27, 2003
2001
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2001
Berkshire Hathaway Inc.'s 2001 annual report highlights a year marked by significant acquisitions and the profound impact of the September 11th terrorist attacks on its insurance and reinsurance businesses. While the non-insurance segments, bolstered by recent acquisitions in building products, Shaw Industries, and other sectors, showed revenue growth and strong operating profits, the insurance underwriting results were severely impacted. General Re, in particular, experienced substantial underwriting losses, largely due to the terrorist attacks and prior-year reserve deficiencies. Despite these challenges, Berkshire maintained strong capital levels across its insurance operations, with major subsidiaries retaining top financial strength ratings. The company's investment portfolio remained substantial, though impacted by equity market fluctuations. Management emphasizes a focus on long-term value creation and prudent capital allocation, with ongoing strategic acquisitions signaling confidence in future growth despite short-term economic headwinds.
Mar 29, 2002
2000
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 2000
Berkshire Hathaway Inc. (BRK-B) presented a robust financial position in its 2001 10-K filing, reflecting the period ending December 30, 2000. The company's core insurance and reinsurance operations, significantly expanded by the acquisitions of GEICO and General Re, demonstrated substantial growth. Despite underwriting losses in some insurance segments, particularly General Re, strong investment income and significant realized investment gains contributed to overall net earnings. The company's diverse non-insurance businesses, spanning retail, flight services, manufacturing, and finance, also showed revenue and profit growth, bolstered by recent acquisitions and ongoing contributions from established operations. Berkshire Hathaway maintained exceptional capital strength across its insurance subsidiaries, a key differentiator in the industry. The significant increase in "float"—policyholder funds available for investment—from $3.8 billion in 1995 to $27.9 billion by the end of 2000, fueled substantial investment income. The filing also highlighted significant equity investments in major corporations such as American Express, Coca-Cola, and Gillette, underscoring the company's strategic approach to value creation through long-term holdings and disciplined capital allocation under the leadership of Warren E. Buffett.
Mar 30, 2001
1999
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 1999
Berkshire Hathaway's 1999 Form 10-K shows a company whose core earnings power weakened sharply while its balance sheet and float base expanded. Net earnings fell to $1,557 million ($1,025 per equivalent Class A share) from $2,830 million in 1998, but this decline is largely due to realized investment gains dropping from $2,415 million to $1,365 million (after-tax contribution $886 million vs. $1,553 million). Management explicitly cautions that realized gains have no predictive value. Earnings before realized investment gains fell to $671 million from $1,277 million, driven by an insurance underwriting loss of $897 million after tax, centered on General Re's pre-tax underwriting loss of $1,184 million, the worst annual result in its 15-year history. Goodwill amortization and purchase-accounting charges rose to $648 million after tax, further pressuring reported results. The investment engine remained strong. Insurance investment income after tax rose to $1,764 million from $731 million, reflecting the General Re acquisition and float growth to about $25.3 billion. Shareholders' equity was essentially flat at $57.8 billion, with book value per equivalent Class A share of $37,987 versus $37,801 a year earlier, because unrealized appreciation on equity holdings fell by roughly $0.8 billion. Year-end equity securities are carried at $39.5 billion, with Coca-Cola, American Express, and Gillette as the largest positions, and the company disclosed that about 60% of equity investments are concentrated in three investees. Total assets rose to $131.4 billion. For investors, the key tension is between a deteriorating reinsurance underwriting record, particularly in General Re's North American and international lines and BHRG's catastrophe and retroactive contracts, and a growing pool of low-cost float plus a large equity portfolio. The filing also flags a pending $1.24 billion investment in MidAmerican Energy Holdings, expected to close by March 31, 2000, and GEICO's expectation that underwriting results will decline further in 2000 as it spends to grow policy count.
Mar 29, 2000
1998
BERKSHIRE HATHAWAY INC Annual Report, Year Ended Dec 31, 1998
Berkshire Hathaway's 1998 10-K reflects a transformational year driven by the December 21, 1998 merger with General Re, which roughly doubled the size of the balance sheet. Total assets rose to $122.2 billion from $56.1 billion, and shareholders' equity reached $57.4 billion (about $37,801 per Class A equivalent share, up from $25,488). Net earnings were $2.83 billion, or $2,262 per Class A equivalent share, compared with $1.90 billion in 1997. However, roughly $1.55 billion of 1998 net earnings came from realized investment gains, and management explicitly states these have no predictive value. Earnings before realized gains rose modestly to $1.28 billion from $1.20 billion. Operationally, the insurance franchise is the core: GEICO grew net premiums written to $4.18 billion, and the Reinsurance Group posted an underwriting loss of $21 million as catastrophe reinsurance pricing weakened. General Re adds meaningful scale, but only its final ten days were consolidated in 1998, so 1999 results should look materially different. Float grew to $22.8 billion, about two-thirds of it from General Re, and the non-insurance segments contributed $635 million in operating profit, led by Flight Services (NetJets) and Dairy Queen. Shoe Group profitability continued to erode. Investors should note the concentration of the equity portfolio (about 60% in three holdings: American Express, Coca-Cola, and Gillette, with Citigroup exposure via the Exchange Notes), the 30% equity price sensitivity of roughly 12.8% of shareholders' equity, and the $600 million after-tax single-event catastrophe exposure in the Reinsurance Group. Berkshire has not paid a cash dividend since 1967, and capital remains very strong, with U.S. statutory surplus of about $45 billion.
Mar 30, 1999