berkshire hathaway updated february 24, 2019

Berkshire Hathaway is updated and rated Buy at $203.71.

The headline news from Berkshire’s Q4 report is hat Berkshire / Buffett lost $25 billion in the quarter and that this included a write-down and other problems as Kraft Heinz. The loss was caused mostly by the stock market plunge in Q4 and a new rules that requires unrealized gains and losses on investments to be reflected in net earnings. Previously they were reflected in “comprehensive earnings” which allowd thge loss to be reflected in book value but not in earnings.

But Q4 actually included a 71% increase in operating earnings (GAAP earnings excluding the market value losses). Operating earnings for 2018 were also up 71%. A large part of the increase came from lower income tax rates. But pre-tax operating earnings were also up substantially.

Based on the higher operating earnings Berkshire’s shares are rated a Buy. I am tempted to add to my modest position.

Scroll to Top