In the fourth quarter, Berkshire reported earning
$29.159 billion, or $11.94 per Class B share, because
of a big improvement in the paper value of its
investments. A year ago, Berkshire lost $25.4
billion, or $10.31 per Class B share, in the fourth
quarter because of a big drop in the paper value
of several of its stock investments.
Buffett has long said Berkshire’s operating
earnings offer a better view of quarterly
performance because they exclude investments
and derivatives, which vary
widely. By that measure, Berkshire’s operating
earnings fell to $4.42 billion, or $1.81 per
B share, in the quarter, from $5.72 billion,
or $2.32 per B share, a year earlier.
The four analysts surveyed by FactSet expected
Berkshire to report operating earnings of
$2.39 per Class B share in the fourth quarter.
Berkshire Hathaway Inc. owns more than 90
companies, including BNSF railroad, Geico
insurance and utilities. The company also
has major investments in such companies
as Apple, American Express, Coca-Cola
and Bank of America.