NEW YORK: Warren Buffett’s Berkshire Hathaway Inc yesterday signalled plans to make more large acquisitions to expand a conglomerate that posted a record profit in 2013, helped by a recovering US economy.
“Charlie and I have always considered a ‘bet’ on ever-rising US prosperity to be a very close to a sure thing,” Buffett, 83, said in his annual letter, referring to his 90-year-old vice chairman Charlie Munger.
“America’s best days lie ahead.” Full-year profit rose 31 percent to $19.48bn, or $11,850 per Class A share, while operating profit rose 20 percent to $15.14bn, or $9,211 per share.
For the fourth quarter, net profit rose nearly 10 percent to $4.99bn and operating profit rose 34 percent to $3.78bn. Results improved in many of the Omaha, Nebraska-based company’s more than 80 businesses, from retail to railroads, insurance to ice cream.
“On the operating front, just about everything turned out well for us last year — in certain cases very well,” the world’s fourth-richest man wrote to shareholders.
Buffett said he remains on the hunt for more big acquisitions, which he calls “elephants,” after two recent big purchases: a $5.6bn acquisition of Nevada utility NV Energy by Berkshire’s MidAmerican Energy unit, and a $12.25bn investment in ketchup maker HJ Heinz Co.
Buffett has long recommended diversified investments in basic businesses capable of steadily boosting revenue over the
long haul.
Reuters
