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Berkshire’s Abel Vows Continuity as Q4 Operating Earnings Drop 29% and Company Books $4.5 Billion Write-Down

He assumes direct oversight of the equity portfolio to reinforce Buffett’s framework of capital discipline.

Overview

  • Operating earnings fell to $10.2 billion for the quarter, down more than 29% year over year, largely reflecting weaker insurance results.
  • Berkshire recorded a $4.5 billion write-down related to its holdings in Kraft Heinz and Occidental Petroleum.
  • Cash and Treasury holdings reached roughly $373 billion at year-end, with Abel reiterating Berkshire’s longstanding stance against paying a dividend.
  • Abel said he will directly manage the equity portfolio, while Ted Weschler now oversees about 6% after taking on part of Todd Combs’ former responsibilities following Combs’ move to JPMorgan.
  • A January filing indicated Berkshire is considering selling some or all of its roughly 325 million Kraft Heinz shares, and Buffett remains chairman as Abel leads the May shareholder meeting Q&A.