Berkshire Hathaway, Warren Buffett’s company, announced that its cash assets reached a record high of $167.6 billion in the fourth quarter. Behind this increase lies the difficulty in finding deals at attractive valuations.
The company’s operating profit increased by 27.5% year-on-year to USD 8.48 billion. This increase was driven by higher interest rates, gains in the insurance sector and higher investment income.
Warren Buffett, the 93-year-old CEO of Berkshire Hathaway, said in the company’s annual letter: “There are only a handful of companies left in this country that can really move the needle on Berkshire, and they have been relentlessly scrutinized, both by us and by others. There are no candidates outside the U.S. that are meaningful options for capital deployment at Berkshire. As a result, we are unlikely to deliver a dazzling performance.”
Buffett’s comments were interpreted as a warning from Berkshire Hathaway that investors should not expect big gains.
