Berkshire Hathaway gains $1.6 bln from its huge bite of Apple

Andrew Cummings
February 25, 2017

Net income rose to US$6.29 billion, or US$3,823 per Class Ashare, from US$5.48 billion, or US$3,333 per share, in the comparable quarter the previous year. That's up from $5.48 billion, or $3.65 per Class B share.

The Omaha, Neb., conglomerate runs a large insurance operation as well as railroad, utilities, industrial manufacturers, retailers and even auto dealerships. One research analyst has rated the stock with a hold rating and four have assigned a buy rating to the company's stock.

Berkshire added two companies in 2016 - metal components maker Precision Castparts Corp., its biggest acquisition ever, and battery maker Duracell - which helped boost results.

Berkshire Hathaway Inc is a holding company owning subsidiaries engaged in various business activities. (BRKa) reported that its fourth quarter profit improved almost 15 percent from the year-ago quarter. Smead said the 86-year-old Buffett and his investing partner, 93-year-old Charlie Munger, seem concerned about their legacies and how Berkshire is perceived.

Buffett said that if the dividend rate on Bank of America common stock, now at 30 cents annually, rises above 44 cents before 2021, Berkshire would anticipate making a cashless exchange of its preferred shares into common.

Buffett said Saturday that Berkshire recorded a 10.7 percent increase in book value and a 23.4 percent gain in stock price in 2016. Mr. Buffett has also frequently used the letters to express his optimism about the future of the USA, through recessions and market turmoil.

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