Berkshire Hathaway Net Earnings

Net Earnings of Berkshire Hathaway 1999-2017

The following table shows the net earnings of Berkshire Hathaway from 1999-2017. The sums are in million dollars.

Berkshire Hathaway Net Earnings 1999-2017 (Sums in Millions dollars)
YearNet Earnings ($ Mn)
2017 $       44,940 
2016 $       24,074 
2015 $       24,083 
2014 $       19,872 
2013 $       19,476 
2012 $       14,824 
2011 $       10,254 
2010 $       12,967 
2009 $         8,055 
2008 $         4,994 
2007 $       13,214 
2006 $       11,015 
2005 $         8,528 
2004 $         7,308 
2003 $         8,151 
2002 $         4,286 
2001 $             795 
2000 $         3,328 
1999 $         1,557 

Berkshire hathaway Inc. is a holding company that owns several subsidiaries engaged in a  variety of businesses. Most important among these are insurance business, freight rail transportation business and a group of utility and energy generation and distribution businesses. Berkshire also owns and operates a large number of other businesses apart from these. These businesses operate independently or on a decentralized basis which means no central HR, marketing or finance function. However, the top management participates in resource allocation, investment and selection of CEOs for each of the businesses.

The net earnings of Berkshire Hathaway jumped to $44.94 Billions rising from 24 Billion dollars previous year. However, to a large extent, it was the TCJA that  was responsible for the increase in net earnings of Berkshire Hathaway. Before TCJA arrived in December Berkshire had been expecting taxes at the corporate rate of 35%. Arrival of the new law changed it to 21%. This is how Berkshire managed to save around 29 billion dollars which went into its gains for the year.

Sources:

Berkshire Hathaway Annual Report

http://fortune.com/2018/02/24/berkshire-hathaway-warren-buffett-29-billion-new-tax-law/

Abhijeet Pratap

Abhijeet has been blogging on educational topics and business research since 2016. He graduated with a Hons. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. He likes to blog and share his knowledge and research in business management, marketing, literature and other areas with his readers.