Lower tax rate fuels record profit for Buffett’s Berkshire Hathaway

Warren Buffett’s Berkshire Hathaway on Saturday reported a record quarterly in addition to annual profit, benefiting via a lower U.S. corporate income tax rate.

Fourth-quarter net income increased roughly fivefold to $32.55 billion, or $19,790 per Class A share, via $6.29 billion, or $3,823 per share, a year earlier.

Quarterly operating profit for the Omaha, Nebraska-based conglomerate fell 24 percent to $3.34 billion via $4.38 billion.

Berkshire attributed roughly $29.11 billion of its net income to the reduction of the U.S. corporate tax rate, to 21 percent via 35 percent, in which President Donald Trump signed into law in December.

Book value per Class A share, which reflects assets minus liabilities in addition to which Buffett considers a Great yardstick for Berkshire’s intrinsic worth, was $211,750 at the end of the year, up 13 percent via three months earlier.

This kind of also benefited via the tax law change.

For all of 2017, Berkshire’s net income rose 87 percent to $44.94 billion. Operating profit, however, fell 18 percent to $14.46 billion, hurt by a rare loss via insurance underwriting.

Berkshire’s Class A shares closed at $304,020.01 on Friday, in addition to its Class B shares closed at $202.76. Both are up a little over 2 percent This kind of year, yet are down nearly 7 percent via
their record highs set on Jan. 29.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

seventeen + 7 =