In its Annual Report, multinational conglomerate Berkshire Hathaway reported a 28% jump in operating earnings, increasing to $8.481 billion in the quarter ending in December from $6.625 billion a year ago. This brings the operating earnings—which are the profits from businesses across utilities, railroads and insurance—in 2023 up to $37.350 billion, up 17% from the previous year.
Profits from auto insurer Geico, insurance underwriting and insurance investments all saw a rise in earnings in 2023. However, railroads, including freight railroad network Burlington Northern Santa Fe, utilities and energy reported lower operating earnings.
In a letter to investors, CEO Warren E. Buffett cited government regulations as part of the challenges faced by the railroad and utility divisions. He also wrote about tighter regulations in certain states that hurt the profits of utilities, alluding specifically to California’s Pacific Gas & Energy and Hawaiian Electric in Hawaii.
“The regulatory climate in a few states has raised the specter of zero profitability or even bankruptcy,” he wrote.
