Warren Buffett, Image Source: Pixabay

Berkshire Hathaway released its 2022 Annual Report and Warren Buffett’s Letter to Shareholders earlier today. Let's take a closer look at the contents and highlight some of the important aspects of these texts. Ten highlights of the texts are as followed:

1. Berkshire’s operating earnings declined by 8% in Q4 2022 vs. Q4 2021, but rose by 9% for CY 2022 vs. CY 2021.
2. Cash equaled $129 billion at year-end 2022 compared to $109 billion on Sept. 30, 2022.
3. Stock buybacks equaled $2.6 billion in Q4 and $7.9 billion in CY 2022.
4. Stock repurchases in Q4 of $2.6 billion are up from $1 billion in the third quarter. The total for 2022 of $7.9 billion is down sharply from $27 billion in 2021 and $24.7 billion in 2020.
5. Berkshire repurchased its Class A shares at an average price of $468,114 and Class B shares at $303.83 in December, 2022. On Feb. 24, 2023 they closed at $461,705 and $304.02, respectively.
6. Berkshire bought back an additional $700 million of its shares in 2023 through Feb. 13.
7. Buffett defended stock buybacks: Those who criticize “all” repurchases are an “economic illiterate or a silver-tongued demagogue (characters that are not mutually exclusive).”
8. Berkshire’s portfolio at year-end 2022 was approximately 70% equity and 30% fixed income.
9. Berkshire’s stock performance over the past five years precisely equaled that of the S&P 500 (+57%). (See p. K-32 of 10-K).
10. Warren Buffett’s Letter to Shareholders was substantially truncated from previous years.

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