Summary
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.
Financial Highlights
31 data points| Revenue | $254.62B |
| Operating Expenses | $225.70B |
| Interest Expense | $3.96B |
| Net Income | $81.42B |
Key Highlights
- 1Total revenues increased to $254.6 billion in 2019.
- 2Net earnings attributable to Berkshire Hathaway shareholders surged to $81.4 billion in 2019, primarily driven by $57.4 billion in after-tax investment and derivative gains.
- 3The insurance underwriting segment reported a net underwriting gain of $325 million, a decrease from $1.6 billion in 2018 but an improvement from a loss in 2017.
- 4Investment income from insurance operations grew by 21.4% in 2019 to $5.5 billion.
- 5BNSF, the railroad business, reported a 5.0% increase in after-tax earnings to $5.5 billion, benefiting from higher rates and cost controls despite lower freight volumes.
- 6Berkshire Hathaway Energy's after-tax earnings increased by 8.4% to $2.8 billion.
- 7The company repurchased $5.0 billion of its Class A and Class B common stock in 2019, aligning with its flexible capital allocation strategy.