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Here are 5 highlights of Warren Buffett’s Letter to Shareholders and Berkshire’s 2023 Annual Report.

1. Berkshire’s operating earnings rose 28% in Q4 and cash rose to $167.6 billion from $157.2 billion at end of Q3. Profit increases in insurance underwriting and investment income handily offset declines at BNSF (railroad) and BHE (energy).
2. Berkshire bought back $2.2 billion of stock in Q4 up from $1.1 billion in Q3. Total repurchases in 2023 were $9.2 billion vs. $7.9 billion in 2022 and $27.1 billion in 2021. It also purchased about $600 million of its shares in Q1 2024 through Feb. 12.
3. Warren Buffett was very pleased with the performance in Berkshire’s insurance businesses, but he was disappointed with that of BNSF and BHE.
4. Berkshire’s Class A closing price of $628,930 equals 1.6 times its book value of about $389,000, slightly above its historic average of 1.4 to 1.5.
5. For the second year in a row, Warren Buffett did not reveal Berkshire’s largest equity holdings (although he discussed a few of them, with emphasis on Occidental Petroleum and 5 large Japanese trading companies).

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