Berkshire Hathaway Financial Performance from 1995 to 2023
Berkshire Hathaway Financial Performance from 1995 to 2023- Under the guidance of Warren Buffett 1960s’, Berkshire Hathaway has transformed into one of world's largest holding company. 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 textile, they experienced the golden and doom era of the textile industry. Until Warren Buffett takes the control of this company and diversified 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. Along with Charlie Munger as Vice Chairman in Berkshire Hathaway, 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 the 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 Coca-Cola, Apple Computer, Kraft Heinz, Bank of America, Verizon Communications, Chevron, General Motors, American Express, BYD, and others.
The Financial Position of Assets and Liabilities of Berkshire Hathaway from 1995 to 2023
| Berkshire Hathaway Financial Conditions/ Positions | |||
|---|---|---|---|
| Years | Assets | Liabilities | Equities |
| In US. Dollar | In US. Dollar | In US. Dollar | |
| 1995 | 29.9 Billion | 12.7 Billion | 17.2 billion |
| 1996 | 43 Billion | 20 Billion | 23 billion |
| 1997 | 56.1 Billion | 24.7 Billion | 31.4 billion |
| 1998 | 122 Billion | 64.8 Billion | 57.2 billion |
| 1999 | 131.4 Billion | 73.7 Billion | 57.7 billion |
| 2000 | 135.7 Billion | 74 Billion | 61.7 billion |
| 2001 | 162.7 Billion | 104.8 Billion | 57.9 billion |
| 2002 | 169.5 Billion | 105.5 Billion | 64 billion |
| 2003 | 180.5 Billion | 103 Billion | 77.5 billion |
| 2004 | 188.8 Billion | 102.9 Billion | 85.9 billion |
| 2005 | 198.3 Billion | 106.9 Billion | 91.4 billion |
| 2006 | 248.4 Billion | 140 Billion | 108.4 billion |
| 2007 | 273.1 Billion | 152.4 Billion | 120.7 billion |
| 2008 | 267.3 Billion | 153.8 Billion | 113.5 billion |
| 2009 | 197 Billion | 161 Billion | 136 billion |
| 2010 | 372.2 Billion | 209.2 Billion | 163 billion |
| 2011 | 392.6 Billion | 223.6 Billion | 169 billion |
| 2012 | 427.4 Billion | 235.8 Billion | 191.6 billion |
| 2013 | 484.9 Billion | 260.4 Billion | 224.5 billion |
| 2014 | 526.1 Billion | 283.1 Billion | 243 billion |
| 2015 | 552.2 Billion | 293.6 Billion | 258.6 billion |
| 2016 | 620.8 Billion | 334.4 Billion | 286.4 billion |
| 2017 | 702 Billion | 350.1 Billion | 351.9 billion |
| 2018 | 707.7 Billion | 355.2 Billion | 352.5 billion |
| 2019 | 817.7 Billion | 389.1 Billion | 428.6 billion |
| 2020 | 873.7 Billion | 422.3 Billion | 451.4 billion |
| 2021 | 948 Billion | 443 Billion | 505 Billion |
| 2022 | 958 Billion | 467 Billion | 491 Billion |
| 2023 1,069 Billion 502 Billion 567 Billion Source : Berkshire Hathaway Annual Report 1995-2023 | |||
From 1995 to 2023, under the guidance of Warren Buffett, Berkshire Hathaway has experienced of some fluctuation in performance, but it is on the right track. The data was obtained from Berkshire Hathaway’s annual report from 1995 to 2023. We collected the data and analyzed the data from the Balance Sheets and Income statements of Berkshire each year.
With the development of Berkshire Hathaway under the Warren Buffett leadership, this company has experienced some fluctuation era but instilled stable conditions. The ratio of assets/ liabilities is between 1.22 and 2.35. the lowest ratio of assets/liabilities happened in 2009 and the highest ratio in 1995. The Assets of Berkshire Hathaway grew consistently from 1995 to 2023. In 1995, the assets is just 29.9 billion US. Dollar and it has grown into 1,069 billion US. Dollar in 203. It increases by thirty times.
The Financial Performance of Revenue and Net Income of Berkshire Hathaway from 1995 to 2023
| Berkshire Hathaway's Business Performance | ||
|---|---|---|
| Years | Revenue | Net Income |
| In US. Dollar | In US. Dollar | |
| 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 Source : Berkshire Hathaway Annual Report From 1995-2023 | ||
In the performance aspects of Berkshire Hathaway from 1995 to 2023, Berkshire Hathaway still have 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 assets, the net income of Berkshire Hathaway increased from 611 million US. Dollar in 1995 and becomes 97.1 billion US. Dollar in 2023. From 1995 to 2023, the Berkshire Hathaway just suffered losses in the year of 2022 with value around -22 billion USD.
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 1.15 from 1995 to 2023. This means that 1 US Dollar of equities is equivalent to 1.15 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 at 1 US Dollars of Assets is equivalent to 0.53 Dollars in Liabilities. Basically, the value of DER and DAR can be better if the value can go down from time to time.
With this incredible performance in more than 2 decades except in the year of 2022, Berkshire Hathaway has become one of the biggest companies in the world with a billion of 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 2022
Berkshire Hathaway. 2024. Annual Report 1995-2022. Accessed via https://www.berkshirehathaway.com/reports.html on February 18th, 2024.