Saturday, March 06, 2004

Bershire Hathaway: Not Satisfied.

Buffet might have scaremongered after 9/11 like an greedy idiot, but he is something else:

Berkshire Gains $13.6B in Net Worth

The Associated Press
Saturday, March 6, 2004; 11:16 AM

OMAHA, Neb. - Berkshire Hathaway Inc. nearly doubled its net earnings last year to $8.1 billion, the company said Saturday, but not enough to satisfy chairman Warren Buffett.

The company's 21 percent increase in book value failed to do better than the S&P 500, which grew by 28.7 percent. Buffett said he and vice chairman Charlie Munger will have to do better.

"Our shareholders can buy the S&P through an index fund at very low cost," Buffett said in his annual report.

"Unless we achieve gains in per-share intrinsic value in the future that outdo the S&P's performance, Charlie and I will be adding nothing to what you can accomplish on your own."

Berkshire earned $5,309 per share in the year ended Dec. 31, up 89 percent from the $4.2 billion in net income in 2002, or $2,795 per share.

Berkshire owns businesses and stock in a wide variety of industries, including insurance, furniture, restaurants, candy and newspapers.

Insurance did well, with $1.7 billion in pretax underwriting profit, Buffett said. But that gain was largely offset by low interest rates the company earned on its large cash holdings.
hmmm, okay. he might want to show, in some way that the increase in bershire's increase wasn't based on nothing, like the rest of the US markets. he's increased his profits by 89%, while the rest of the market inflates its P/e ratio like a mofo.

quality earnings at berkshire are better than the bubble market that the US is into right now.

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