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Abel’s First Berkshire Letter Signals Continuity as Q4 Operating Profit Falls and Cash Nears Record

Abel frames Berkshire’s record cash as deliberate dry powder for disciplined deployment.

Overview

  • Fourth-quarter operating earnings fell to $10.2 billion, down about 30% year over year, driven largely by weaker insurance results.
  • Berkshire recorded a $4.5 billion write-down tied to its Kraft Heinz and Occidental Petroleum stakes, and a January filing indicated it may consider selling some or all of its roughly 325 million Kraft Heinz shares.
  • Cash and U.S. Treasuries totaled about $373 billion at year-end, with no share repurchases and no plans to introduce a dividend under Abel’s stated policy.
  • Abel said he will directly oversee the equity portfolio, with Ted Weschler managing about 6% following Todd Combs’ departure to JPMorgan.
  • Shareholder-meeting Q&A will expand to panels with Ajit Jain, Katie Farmer, and Adam Johnson, and Buffett remains chairman and is active in the office.