Is Berkshire Hathaway in 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%.
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.
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%.
Berkshire Hathaway Debt to Equity Ratio: 0.2285 for Dec. 31, 2023.
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.
| Blackstone Plaza, the location of Berkshire's corporate offices in Omaha, Nebraska | |
|---|---|
| Founder | Oliver Chace |
| Headquarters | Blackstone Plaza, Omaha, Nebraska , U.S. |
| Area served | Worldwide |
| Key people | Warren Buffett (Chairman & CEO) Greg Abel (Vice chair, non-insurance) Ajit Jain (Vice chair, insurance) |
Berkshire Hathaway doesn't pay dividends
In the comparison to the S&P 500 Index above, the performance figures include reinvested dividends. That is a benefit for the S&P 500, but has no impact on Berkshire Hathaway's performance because the company doesn't pay a dividend.
Buffett has carefully built Berkshire Hathaway to last long after he's gone, always maintaining a long-term vision at the company that's helped the stock outperform the S&P 500 over the years. But this giant, worth nearly $900 billion, isn't a buy at any price.
Long-term performance means sticking around
Berkshire Hathaway doesn't pay dividends, so its return remains at 215%. But if you reinvested dividends into the S&P 500, your total return would be about 205%. Berkshire Hathaway's lead isn't quite as compelling anymore.
Why does Berkshire Hathaway have so much debt?
When it does issue debt, it does so on a long-term, fixed-rate basis. Berkshire's corporate debt load has risen the past couple of years, though, reaching $18.8 billion at the end of 2017, as the company has taken on debt to fund acquisitions. Buffett has been chairman and CEO of Berkshire Hathaway since 1970.
Berkshire Hathaway Total Long Term Debt (Quarterly): 128.27B for Dec. 31, 2023.
Berkshire Hathaway's cash-heavy balance sheet has been a hallmark of its financial strategy. The company's emphasis on maintaining high liquidity levels has often set it apart from its peers, providing it with the financial flexibility and resilience to weather market downturns and seize growth opportunities.
One of the biggest reasons why BRK. A is so expensive is because CEO Warren Buffett has decided against a stock split. A stock split is when a company splits its existing stock to create more shares, often resulting in a lower share price.
Total assets on the balance sheet as of December 2023 : $1.069 T. According to Berkshire Hathaway 's latest financial reports the company's total assets are $1.069 T. A company's total assets is the sum of all current and non-current assets, such as inventories, cash and cash equivalents, properties and equipment.
A) over the last 10 years. How much a company is worth is typically represented by its market capitalization, or the current stock price multiplied by the number of shares outstanding. Berkshire Hathaway net worth as of April 26, 2024 is $880.94B.
He teamed up with Bill and Melinda Gates in 2010 to form The Giving Pledge, an initiative that asks the world's wealthiest people to dedicate the majority of their wealth to philanthropy. Buffett himself has pledged that 99% of his wealth will go to philanthropy during his lifetime or upon his death.
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.
Berkshire has a zero-tolerance approach to harassment, discrimination, bribery, and/or corruption. We are committed to maintaining the highest ethical and legal standards in our relationships around the world, including our relationships with governments and government officials as well as with other businesses.
The 93-year-old has received $100,000 a year since 1980 — a fraction of the $18 million average pay of S&P 500 CEOs in 2021. Buffett doesn't earn much from other sources either.
How much does Greg Abel make a year?
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.
In 2021 according to Forbes Abel's net worth was estimated at $484 million mainly thanks to his 1% stake in Berkshire Hathaway Energy. In June 2022, he sold his 1% stake in Berkshire Hathaway Energy for $870 million.
LOS ANGELES (AP) — A real estate company owned by Warren Buffett's Berkshire Hathaway has agreed to pay $250 million to settle lawsuits nationwide claiming that longstanding practices by real estate brokerages forced U.S. homeowners to pay artificially inflated broker commissions when they sold their homes.
Cons to Buying Berkshire Hathaway Stock
Berkshire shares have performed better in 2021, but they had been underperforming the S&P 500 prior to that – understandably so, given that Buffett has been sitting on an ever-growing pile of cash.
Along with being more accessible to retail investors, Class B shares offer the benefit of flexibility. If an investor owns just one share of Class A and is in need of some cash, the only option is to sell that single share, even if its price far exceeds the amount of money they need to access.
