Berkshire Hathaway Financial Performance from 1995 to 2024
Berkshire
Hathaway Financial Performance from 1995 to 2024- Under the guidance of Warren Buffett
1960s’, Berkshire Hathaway has transformed into one of world's largest holding companies.
Historically, Berkshire Hathaway has a long history and journey in the textile
industry that was established by Oliver Chace in 1839. After some mergers with
other textiles, they experienced the golden and doom era of the textile
industry. Until Warren Buffett takes control of this company and diversifies
its business.
Historically, Warren Buffett bought the shares from the former stakeholder, namely Seabury Stanton. In the beginning, Berkshire Hathaway was a textile company, but it does not run well. In 1985, Warren Buffett shut down the core business of Berkshire Hathaway. Although he closed the textile business of Berkshire Hathaway, this company has enormous subsidiaries in multiple industries. Warren Buffett acknowledges that investing in Berkshire Hathaway was one of the worst mistakes, but he uses Berkshire Hathaway to conquer the world and shows his ability in investing skills. Accompanied by Gregory E. Abel as Vice Chairman of Berkshire for Non-Insurance Operations and Ajit Jain as Vice Chairman of Berkshire - Insurance Operations, he still runs Berkshire Hathaway with a modest life and simplicity.
Warren Buffett and Berkshire Hathaway Performance
Warren Edward Buffett, commonly known as Warren
Buffett or the oracle of Omaha, is the billionaire that was born in Omaha, on
August 30th, 1930. He was a student of Benjamin Graham, the father of value
investing, at Columbia University. Benjamin Graham, as we know, is popular with
the formula of valuing the stock, and he is the author of some popular
investment books, namely “The
Intelligent Investor “, “Security
Analysis”, and “The Interpretation
of The Financial Statements“. Moreover, Warren Buffett also is influenced
by Phillip Fisher, the stock investor and the author of Common Stock and
Uncommon Profits.
Nowadays, the company has diverse subsidiaries
from Berkshire Hathaway Direct Insurance Company, Berkshire Hathaway Energy
Company, Berkshire Hathaway GUARD Insurance Companies, Berkshire Hathaway Home
state Companies, and Berkshire Hathaway Specialty Insurance. Moreover, this
company still has some shares in some reputable companies. These companies are
Apple Inc, American Express Co, Bank of America Corp, Coca Cola Company,
Chevron Corporation, Occidental Petroleum Corporation, Moody's Corporation, Kraft
Heinz Co, Chubb Limited, Davita Inc, Kroger Co, Verisign Inc, Sirius Xm
Holdings Inc, Visa Inc, Amazon Com Inc and others.
You can also Check : 30 Largest Berkshire Hathaway Portfolio in 2024
The Financial Position of Total Assets and Total
Liabilities of Berkshire Hathaway from 1995 to 2024
|
Berkshire Hathaway Financial Position |
||
|
Years |
Total Assets |
Total Liabilities |
|
In the US Dollar (USD) |
||
|
1995 |
29.9 billion |
12.7 billion |
|
1996 |
43 billion |
20 billion |
|
1997 |
56.1 billion |
24.7 billion |
|
1998 |
122 billion |
64.8 billion |
|
1999 |
131.4 billion |
73.7 billion |
|
2000 |
135.7 billion |
74 billion |
|
2001 |
162.7 billion |
104.8 billion |
|
2002 |
169.5 billion |
105.5 billion |
|
2003 |
180.5 billion |
103 billion |
|
2004 |
188.8 billion |
102.9 billion |
|
2005 |
198.3 billion |
106.9 billion |
|
2006 |
248.4 billion |
140 billion |
|
2007 |
273.1 billion |
152.4 billion |
|
2008 |
267.3 billion |
153.8 billion |
|
2009 |
297 billion |
161 billion |
|
2010 |
372.2 billion |
209.2 billion |
|
2011 |
392.6 billion |
223.6 billion |
|
2012 |
427.4 billion |
235.8 billion |
|
2013 |
484.9 billion |
260.4 billion |
|
2014 |
526.1 billion |
283.1 billion |
|
2015 |
552.2 billion |
293.6 billion |
|
2016 |
620.8 billion |
334.4 billion |
|
2017 |
702 billion |
350.1 billion |
|
2018 |
707.7 billion |
355.2 billion |
|
2019 |
817.7 billion |
389.1 billion |
|
2020 |
873.7 billion |
422.3 billion |
|
2021 |
948 billion |
443 billion |
|
2022 |
958 billion |
467 billion |
|
2023 |
1,069 billion |
499 billion |
|
2024 |
1,153 billion |
502 billion |
|
Source: Berkshire Hathaway Annual Report 1995-2024 |
||
From 1995 to 2024, under the guidance of Warren Buffett, Berkshire
Hathaway experienced some fluctuation in performance, but it is on the right
track. The data was obtained from Berkshire Hathaway’s annual report from 1995
to 2024. We collected the data and analyzed the data from the Balance Sheets
and Income statements of Berkshire each year.
|
Berkshire Hathaway Financial
Position |
Ratio |
||
|
Years |
Total Assets |
Total Liabilities |
Total Assets/ Total Liabilities |
|
In a Billion US. Dollar (USD) |
|
||
|
1995 |
29.9 |
12.7 |
2.35 |
|
1996 |
43 |
20 |
2.15 |
|
1997 |
56.1 |
24.7 |
2.27 |
|
1998 |
122 |
64.8 |
1.88 |
|
1999 |
131.4 |
73.7 |
1.78 |
|
2000 |
135.7 |
74 |
1.83 |
|
2001 |
162.7 |
104.8 |
1.55 |
|
2002 |
169.5 |
105.5 |
1.61 |
|
2003 |
180.5 |
103 |
1.75 |
|
2004 |
188.8 |
102.9 |
1.83 |
|
2005 |
198.3 |
106.9 |
1.86 |
|
2006 |
248.4 |
140 |
1.77 |
|
2007 |
273.1 |
152.4 |
1.79 |
|
2008 |
267.3 |
153.8 |
1.74 |
|
2009 |
297 |
161 |
1.84 |
|
2010 |
372.2 |
209.2 |
1.78 |
|
2011 |
392.6 |
223.6 |
1.76 |
|
2012 |
427.4 |
235.8 |
1.81 |
|
2013 |
484.9 |
260.4 |
1.86 |
|
2014 |
526.1 |
283.1 |
1.86 |
|
2015 |
552.2 |
293.6 |
1.88 |
|
2016 |
620.8 |
334.4 |
1.86 |
|
2017 |
702 |
350.1 |
2.01 |
|
2018 |
707.7 |
355.2 |
1.99 |
|
2019 |
817.7 |
389.1 |
2.10 |
|
2020 |
873.7 |
422.3 |
2.07 |
|
2021 |
948 |
443 |
2.14 |
|
2022 |
958 |
467 |
2.05 |
|
2023 |
1,069 |
499 |
2.14 |
|
2024 |
1,153 |
502 |
2.30 |
|
Source :
Berkshire Hathaway Annual Report 1995-2024 |
|||
With the development of Berkshire Hathaway under
the Warren Buffett leadership, this company has experienced some fluctuation but instilled stable
conditions. The ratio of assets/ liabilities is between 1.22 and 2.35. The lowest ratio of assets/liabilities happened in 2001 and
the highest ratio in 1995. The total assets of Berkshire Hathaway grew
consistently from 1995 to 2024. In 1995, the total assets was just USD 29.9 billion and it grew into USD 1,153 billion in
2024. It increases by thirty times.
The
Financial Performance of Revenue and Net Income of Berkshire Hathaway from 1995
to 2024
|
|
||
|
Berkshire
Hathaway's Business Performance |
||
|
Years |
Total Revenue |
Net Income |
|
|
In US Dollar (USD) |
In US Dollar (USD) |
|
1995 |
4.4 billion |
611 million |
|
1996 |
10.5 billion |
2.4 billion |
|
1997 |
10.4 billion |
1.9 billion |
|
1998 |
13.8 billion |
2.8 billion |
|
1999 |
24 billion |
1.5 billion |
|
2000 |
33.9 billion |
3.3 billion |
|
2001 |
37.6 billion |
521 million |
|
2002 |
42.3 billion |
4.2 billion |
|
2003 |
63.8 billion |
8.1 billion |
|
2004 |
74.3 billion |
7.3 billion |
|
2005 |
81.6 billion |
8.5 billion |
|
2006 |
98.5 billion |
11 billion |
|
2007 |
118.2 billion |
13.2 billion |
|
2008 |
107.7 billion |
4.9 billion |
|
2009 |
112.4 billion |
8 billion |
|
2010 |
136.1 billion |
12.9 billion |
|
2011 |
143.6 billion |
10.2 billion |
|
2012 |
162.4 billion |
14.8 billion |
|
2013 |
153.3 billion |
19.47 billion |
|
2014 |
194.6 billion |
19.8 billion |
|
2015 |
210.9 billion |
24 billion |
|
2016 |
223.6 billion |
24 billion |
|
2017 |
239.9 billion |
44.9 billion |
|
2018 |
247.8 billion |
4 billion |
|
2019 |
254.6 billion |
81.4 billion |
|
2020 |
245.5 billion |
42.5 billion |
|
2021 |
276.2 billion |
90.8 billion |
|
2022 |
302 billion |
-22 billion |
|
2023 |
364 billion |
97.1 billion |
|
2024 |
371 billion |
89.5 billion |
|
Source:
Berkshire Hathaway Annual Report From 1995-2024 |
||
In the performance aspects of Berkshire Hathaway from 1995 to
2024, Berkshire Hathaway still has been consistent in generating profit / net income without any
losses except in 2022. The highest profit / net income of Berkshire Hathaway
occurs in 2023, and the lowest net income was in 2001. Along with the total
assets, the net income of Berkshire Hathaway increased from 611 million US
Dollars in 1995 and 89.1 billion US Dollars in 2024. From 1995 to 2024, Berkshire Hathaway suffered losses in the year 2022 with a value of
around -22 billion USD.
|
Berkshire Hathaway Performance From 1995 to 2024 |
|||
|
Years |
Revenue |
Net Income |
Net Profit Margin |
|
In a
Billion US. Dollar |
% |
||
|
1995 |
4.4 |
0.611 |
14% |
|
1996 |
10.5 |
2.4 |
23% |
|
1997 |
10.4 |
1.9 |
18% |
|
1998 |
13.8 |
2.8 |
20% |
|
1999 |
24 |
1.5 |
6% |
|
2000 |
33.9 |
3.3 |
10% |
|
2001 |
37.6 |
0.521 |
1% |
|
2002 |
42.3 |
4.2 |
10% |
|
2003 |
63.8 |
8.1 |
13% |
|
2004 |
74.3 |
7.3 |
10% |
|
2005 |
81.6 |
8.5 |
10% |
|
2006 |
98.5 |
11 |
11% |
|
2007 |
118.2 |
13.2 |
11% |
|
2008 |
107.7 |
4.9 |
5% |
|
2009 |
112.4 |
8 |
7% |
|
2010 |
136.1 |
12.9 |
9% |
|
2011 |
143.6 |
10.2 |
7% |
|
2012 |
162.4 |
14.8 |
9% |
|
2013 |
153.3 |
19.47 |
13% |
|
2014 |
194.6 |
19.8 |
10% |
|
2015 |
210.9 |
24 |
11% |
|
2016 |
223.6 |
24 |
11% |
|
2017 |
239.9 |
44.9 |
19% |
|
2018 |
247.8 |
4 |
2% |
|
2019 |
254.6 |
81.4 |
32% |
|
2020 |
245.5 |
42.5 |
17% |
|
2021 |
276 |
90.8 |
33% |
|
2022 |
302 |
-22 |
-7% |
|
2023 |
364 |
97.1 |
27% |
|
2024 |
245 |
42.5 |
17% |
|
Source: Berkshire Hathaway Annual Report 1995-2024 |
|||
Based on some financial ratios, Berkshire
Hathaway showed a consistent Debt Equity Ratio (DER) and Debt to Assets Ratio
(DAR). The average Debt to Equity ratio showed an average of 1.13 from 1995 to
2024. This means that 1 US Dollar of equities is equivalent to 1.13 of
liabilities. Meanwhile, in the Debt to Assets ratio, the average of Berkshire
Hathaway’s DAR average value is around 0.53. It means that 1 US Dollars of Total Assets
is equivalent to 0.53 Dollars in Liabilities. Basically, the value of DER and
DAR can be better and show positive to the company if the value can go down from time to time.
|
Years |
Debt Equity Ratio (DER) |
Debt To Assets Ratio (DAR) |
|
(Liabilities / Equities) |
(Liabilities/ Assets ) |
|
|
1995 |
0.74 |
0.42 |
|
1996 |
0.87 |
0.47 |
|
1997 |
0.79 |
0.44 |
|
1998 |
1.13 |
0.53 |
|
1999 |
1.28 |
0.56 |
|
2000 |
1.20 |
0.55 |
|
2001 |
1.81 |
0.64 |
|
2002 |
1.65 |
0.62 |
|
2003 |
1.33 |
0.57 |
|
2004 |
1.20 |
0.55 |
|
2005 |
1.17 |
0.54 |
|
2006 |
1.29 |
0.56 |
|
2007 |
1.26 |
0.56 |
|
2008 |
1.36 |
0.58 |
|
2009 |
1.18 |
0.54 |
|
2010 |
1.28 |
0.56 |
|
2011 |
1.32 |
0.57 |
|
2012 |
1.23 |
0.55 |
|
2013 |
1.16 |
0.54 |
|
2014 |
1.17 |
0.54 |
|
2015 |
1.14 |
0.53 |
|
2016 |
1.17 |
0.54 |
|
2017 |
0.99 |
0.50 |
|
2018 |
1.01 |
0.50 |
|
2019 |
0.91 |
0.48 |
|
2020 |
0.94 |
0.48 |
|
2021 |
0.88 |
0.47 |
|
2022 |
0.95 |
0.49 |
|
2023 |
0.82 |
0.49 |
|
2024 |
0.72 |
0.49 |
|
Average
|
1.13 |
0.53 |
With this incredible performance for more than 2 decades except in
the year 2022, Berkshire Hathaway has become one of the biggest companies in
the world with a billion assets and profits. Berkshire Hathaway’s performance
is the reflection of Warren Buffett’s managerial, vision, and skills that
manage the company and its subsidiaries.
Bibliography of Warren Buffett and Berkshire
Hathaway Performance from 1995 to 2024
Berkshire Hathaway. 2025. Annual Report 1995-2024. Accessed
via https://www.berkshirehathaway.com/reports.html on February 18th, 2025.