Does Berkshire Hathaway have a lot of debt?
Total debt on the balance sheet as of December 2023 : $128.27 B. According to Berkshire Hathaway 's latest financial reports the company's total debt is $128.27 B. A company's total debt is the sum of all current and non-current debts.
Berkshire Hathaway Balance Sheet Health
Berkshire Hathaway has a total shareholder equity of $570.8B and total debt of $128.3B, which brings its debt-to-equity ratio to 22.5%.
B WACC - Weighted Average Cost of Capital. The WACC of Berkshire Hathaway Inc (BRK.B) is 7.4%. The Cost of Equity of Berkshire Hathaway Inc (BRK.B) is 8.05%. The Cost of Debt of Berkshire Hathaway Inc (BRK.B) is 4.35%.
The primary driver behind Berkshire Hathaway's investment loss is its majority stake in tech giant Apple Inc. (NASDAQ:AAPL). Apple's shares declined by over 11% in the third quarter, causing Buffett to incur an investment loss of over $24 billion during this period.
Berkshire Hathaway is an excellent business with steady cash flows and is coming off another solid year of earnings. Its growing cash pile gives Buffett and his team a lot of dry powder to put to work when the time is right. BRK. B cash and short-term investments (quarterly), data by YCharts.
| Blackstone Plaza, the location of Berkshire's corporate offices in Omaha, Nebraska | |
|---|---|
| Founder | Oliver Chace |
| Headquarters | Blackstone Plaza, Omaha, Nebraska , United States |
| Area served | Worldwide |
| Key people | Warren Buffett (Chairman & CEO) Greg Abel (Vice chair, non-insurance) Ajit Jain (Vice chair, insurance) |
Still, Buffett admitted greater ambitions when asked at last year's annual meeting about prospects for the cash. “What we'd really like to do is buy great businesses,” he said. “If we could buy a company for $50 billion or $75 billion, $100 billion, we could do it.”
Berkshire Hathaway Total Long Term Debt (Quarterly): 128.27B for Dec. 31, 2023.
Berkshire Hathaway owns businesses in insurance, rail transportation, energy generation and distribution, manufacturing, and retailing. The company is also a large stakeholder in many prominent companies in the U.S., such as American Express and Coca-Cola.
Simply put, Berkshire Hathaway doesn't pay any dividends because Warren Buffet (The Chairman and CEO of BH) believes that instead of paying dividends they should allocate their profits for more reinvestment into the company. Originally Answered: Why is Berkshire Hathway's share price so high?
Will Berkshire Hathaway survive after Warren Buffett?
Greggory Warren: Well, about a decade ago, we really started noting in our research that we felt that Berkshire would survive the eventual departure of both Buffett and Munger and that there was a groundwork there for a successful transition that they really started around the new millennium.
Key Points. Berkshire shares now trade at 1.5 times book value -- a premium to historical averages. Throughout history, however, there has never been a bad time to invest in the stock. Patient investors shouldn't be scared to invest in Berkshire, even at the current premium.
Meet Greg Abel, Warren Buffett's successor and heir apparent to Berkshire Hathaway. Warren Buffett named Greg Abel, 61, as his successor at Berkshire Hathaway back in 2021.
BRK.
Berkshire's stock performance has generally been solid, increasing at a 9.5% (13.3%) CAGR during 2018-22 (2013-22), compared with a 9.4% (12.6%) average annual return for the S&P 500 TR Index. At the end of June 2023, Berkshire had approximately $166 billion in insurance float.
Berkshire created two share classes in 1996 to make investing more accessible. Both share classes offer essentially the same exposure to the company's success. Most investors are better off sticking with Class B shares for their flexibility and affordability.
Based on analyst ratings, Berkshire Hathaway B's 12-month average price target is $443.00. Berkshire Hathaway B has 8.38% upside potential, based on the analysts' average price target. Berkshire Hathaway B has a conensus rating of Moderate Buy which is based on 1 buy ratings, 1 hold ratings and 0 sell ratings.
Warren Buffett has earned a $100,000 annual salary for more than four decades. His company, Berkshire Hathaway, spends about three times that amount keeping him safe each year. Buffett's net worth is about $120 billion but the investor has a fairly modest lifestyle.
McDonald's
It's important to clarify that McDonald's stock is not directly in Buffett's Berkshire Hathaway portfolio. Rather, its position is held in New England Asset Management (NEAM), a subsidiary of Berkshire Hathaway.
Abel and Vice Chairman Ajit Jain, who respectively oversee Berkshire's non-insurance and insurance operations, were each awarded $20 million in salary. Both had been paid $19 million in 2022, including a $16 million salary plus a $3 million bonus. Buffett sets the pay for Abel and Jain.
Warren Buffett typically does not give money to individuals, although he frequently donates to charities. However, he has in the past forwarded individual requests for money to his sister, Ms. Doris Buffett, who operates an organization called the Sunshine Lady Foundation.
How much does Warren Buffett have in cash right now?
He May Have Just Revealed Why, and It Makes Total Sense. Some of the most successful and revered coaches have something in common: They are OK with taking risks, but not gambles. This is a subtle nuance that can also be applied to investing.
Berkshire still owns more than 905 million shares of the company, worth about $174 billion. That represents 6% of all Apple shares and one-fifth of Berkshire's entire portfolio. Many investors, hoping to duplicate the success of Berkshire's portfolio, closely watch and often copy Buffett's market moves.
Historical daily share price chart and data for Berkshire Hathaway since 1980 adjusted for splits and dividends. The latest closing stock price for Berkshire Hathaway as of April 24, 2024 is 613420.00. The all-time high Berkshire Hathaway stock closing price was 634440.00 on March 28, 2024.
Apple is Berkshire's largest public stock holding by far. Berkshire's $155 billion Apple stake is roughly four times larger than its second-largest holding.
- Berkshire Hathaway's portfolio's five largest positions are in Apple Inc. ( ...
- Apple is Berkshire's largest holding, accounting for about 50% of its stock portfolio. ...
- The top five holdings account for about 80% of the portfolio.
