Summary
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.
Financial Highlights
30 data points| Revenue | $276.19B |
| Operating Expenses | $243.75B |
| Interest Expense | $4.17B |
| Net Income | $89.94B |
Key Highlights
- 1Net earnings attributable to Berkshire Hathaway shareholders significantly increased to $89.8 billion in 2021, up from $42.5 billion in 2020, driven by strong investment gains.
- 2The insurance underwriting businesses reported net underwriting earnings of $728 million in 2021, an improvement from $657 million in 2020, despite significant catastrophe losses.
- 3The railroad business (BNSF) saw pre-tax earnings rise 15.7% to $7.9 billion in 2021, benefiting from higher freight volumes and increased average revenue per car.
- 4Utilities and energy (BHE) reported a 15.9% increase in net earnings attributable to Berkshire Hathaway shareholders, reaching $3.5 billion in 2021, boosted by utility margin increases and acquisitions.
- 5Manufacturing, service, and retailing businesses collectively delivered strong performance, with pre-tax earnings up 33.6% to $14.6 billion in 2021.
- 6Berkshire Hathaway repurchased $27.1 billion of its Class A and B common stock in 2021, demonstrating its commitment to returning capital to shareholders when intrinsic value is deemed attractive.
- 7The company maintained a strong financial position, with $506.2 billion in consolidated shareholders' equity at year-end 2021 and significant liquidity, including $90.7 billion in cash, cash equivalents, and U.S. Treasury Bills.