Berkshire Hathaway Inc. News Release

Rhea-AI Summary

Berkshire Hathaway reported its earnings for Q4 and full year 2022, reflecting net earnings attributable to shareholders of $18.2 billion in Q4 and $89.8 billion for the full year, marking a decrease from $39.6 billion in Q4 2021. Notably, the company faced significant investment losses of $53.6 billion for the year, with Q4 showing a gain of $11.5 billion. Operating earnings were $6.7 billion in Q4 2022, down from $7.3 billion in Q4 2021, while full-year operating earnings reached $30.8 billion. Berkshire repurchased approximately $2.6 billion worth of shares in Q4, totaling $7.9 billion for the year, with outstanding shares at approximately 1.46 million.

Positive

• Net earnings attributable to shareholders increased from a loss of $22.8 billion in Q4 2021 to a profit of $18.2 billion in Q4 2022.
• Operating earnings for full year 2022 reached $30.8 billion, indicating consistent operational performance.

Negative

• Net earnings for full year decreased significantly from $89.8 billion to $39.6 billion in Q4 2021.
• Investment and derivative losses totaled $53.6 billion for the entire year, raising concerns about investment performance.

OMAHA, Neb.--(BUSINESS WIRE)-- (BRK.A; BRK.B) – Berkshire’s operating results for the fourth quarter and full year of 2022 and 2021 are summarized in the following paragraphs. However, we urge investors and reporters to read our 2022 Annual Report, which has been posted at www.berkshirehathaway.com. The limited information that follows in this press release is not adequate for making an informed investment judgment.

Earnings (losses) of Berkshire Hathaway Inc. and its consolidated subsidiaries for the fourth quarter and full year of 2022 and 2021 are summarized below. Earnings (losses) are stated on an after-tax basis. (Dollar amounts are in millions, except for per share amounts).

	Fourth Quarter						Full Year
	2022			2021			2022				2021
Net earnings (loss) attributable to Berkshire shareholders	$	18,164		$	39,646		$	(22,819	)		$	89,795
Net earnings (loss) includes:
Investment and derivative gains (losses)		11,455			32,361			(53,612	)			62,340
Operating earnings		6,709			7,285			30,793				27,455
Net earnings (loss) attributable to Berkshire shareholders	$	18,164		$	39,646		$	(22,819	)		$	89,795

Net earnings (loss) per average equivalent Class A Share	$	12,412		$	26,690		$	(15,535	)		$	59,460
Net earnings (loss) per average equivalent Class B Share	$	8.27		$	17.79		$	(10.36	)		$	39.64

Average equivalent Class A shares outstanding	1,463,422		1,485,452		1,468,876		1,510,180
Average equivalent Class B shares outstanding	2,195,133,576		2,228,178,320		2,203,313,642		2,265,269,867
Note: Per share amounts for the Class B shares are 1/1,500th of those shown for the Class A.

Generally Accepted Accounting Principles (“GAAP”) require that we include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our earnings statements. In the table above, investment gains (losses) in 2022 include gains of $10.1 billion in the fourth quarter and losses of $53.8 billion in the full year and in 2021 include gains of $31.7 billion in the fourth quarter and $58.6 billion in the full year due to changes during the fourth quarter and the full year in the unrealized gains that existed in our equity security investment holdings. Investment gains (losses) in 2022 also include after-tax realized gains on sales of investments of $1.0 billion in the fourth quarter and $54 million in the full year and in 2021 include after-tax realized gains on sales of investments of $535 million in the fourth quarter and $2.9 billion in the full year.

The amount of investment gains/losses in any given quarter is usually meaningless and delivers figures for net earnings (losses) per share that can be extremely misleading to investors who have little or no knowledge of accounting rules.

An analysis of Berkshire’s operating earnings follows (dollar amounts are in millions).

	Fourth Quarter							Full Year
	2022				2021			2022				2021
Insurance-underwriting	$	244			$	372		$	(90	)		$	728
Insurance-investment income		2,000				1,219			6,484				4,807
Railroad		1,469				1,685			5,946				5,990
Utilities and energy		739				598			3,904				3,572
Other controlled businesses		2,991				2,791			12,512				11,120
Non controlled businesses*		718				174			1,528				804
Other**		(1,452	)			446			509				434
Operating earnings	$	6,709			$	7,285		$	30,793			$	27,455
* Includes certain businesses in which Berkshire had between a 20% and 50% ownership interest.   ** Includes foreign currency exchange losses related to non-U.S. Dollar denominated debt of approximately $1.2 billion in the fourth quarter and gains of approximately $1.3 billion in the full year in 2022 and in 2021 includes foreign currency exchange gains of approximately $279 million in the fourth quarter and approximately $955 million in the full year.

Approximately $2.6 billion was used to repurchase Berkshire shares during the fourth quarter bringing the total for the year to approximately $7.9 billion. On December 31, 2022 there were 1,459,733 Class A equivalent shares outstanding. At December 31, 2022, insurance float (the net liabilities we assume under insurance contracts) was approximately $164 billion, an increase of $17 billion since yearend 2021. The increase in float includes $14 billion related to Berkshire’s acquisition of Alleghany Corporation.

Use of Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures. The reconciliations of such measures to the most comparable GAAP figures in accordance with Regulation G are included herein.

Berkshire presents its results in the way it believes will be most meaningful and useful, as well as most transparent, to the investing public and others who use Berkshire’s financial information. That presentation includes the use of certain non-GAAP financial measures. In addition to the GAAP presentations of net earnings, Berkshire shows operating earnings defined as net earnings exclusive of investment and derivative gains/losses and impairments of goodwill and intangible assets.

Although the investment of insurance and reinsurance premiums to generate investment income and investment gains or losses is an integral part of Berkshire’s operations, the generation of investment gains or losses is independent of the insurance underwriting process. Moreover, as previously described, under applicable GAAP accounting requirements, we are required to include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our periodic earnings statements. In sum, investment gains/losses for any particular period are not indicative of quarterly business performance.

About Berkshire

Berkshire Hathaway and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.

Cautionary Statement

Certain statements contained in this press release are “forward looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guaranties of future performance and actual results may differ materially from those forecasted.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230225005002/en/

Marc D. Hamburg

402-346-1400

Source: Berkshire Hathaway Inc.

FAQ

What were Berkshire Hathaway's earnings for Q4 2022?

Berkshire Hathaway reported net earnings of $18.2 billion in Q4 2022.

How did Berkshire Hathaway perform in 2022 compared to 2021?

In 2022, Berkshire's net earnings were $89.8 billion, a decrease from $39.6 billion in 2021.

What were the investment gains and losses for Berkshire Hathaway in 2022?

Berkshire Hathaway experienced investment losses of $53.6 billion for the full year 2022.

What is the operating earnings trend for Berkshire Hathaway in 2022?

Operating earnings for 2022 totaled $30.8 billion, showing a decline from $27.5 billion in 2021.

How much did Berkshire Hathaway repurchase in shares during Q4 2022?

Berkshire Hathaway repurchased approximately $2.6 billion worth of shares in Q4 2022.