OMAHA (dpa-AFX) - Billionaire Warren Buffett's Berkshire Hathaway Inc. (BRK-A, BRK-B) reported that its fourth-quarter 2014 net earnings decreased 17 percent as Investment gains declined, but operating earnings increased.
Net earnings attributable to shareholders for the quarter declined to $4.16 billion, or $2,529 per Class A share, from $4.99 billion or $3,035 per Class A share in the previous year. Investment and derivative gains was $192 million, compared to $1.214 billion in the prior year.
But, operating earnings for the quarter increased to $3.96 billion from the prior year's $3.78 billion, with Operating earnings per Class A share improving to $2,412 from $2,297 last year.
At December 31, 2014, the company's book value had increased by 8.3% since year end 2013 to $146,186 per Class A equivalent share. Insurance float at December 31, 2014 was approximately $84 billion.
Berkshire is a holding company with a number of operating subsidiaries like auto insurer Geico, reinsurer General Re, railroad BNSF, lubricant maker Lubrizol, energy utilities and a host of other manufacturing and retail companies.
The next Berkshire CEO will need 'the ability to fight off the ABCs of business decay, which are arrogance, bureaucracy and complacency,' Warren Buffett, wrote in his annual letter to Berkshire shareholders posted online Saturday.
He reiterated that the Omaha, Nebraska-based company's board has the 'right person' to succeed him after he dies or steps down, and believes that future CEOs should come from Berkshire's internal ranks.
In a separate letter, the Vice Chairman of the company Charles Munger specifically praised Jain and Abel. The two managers are proof that Berkshire would continue to thrive if Buffett departed soon, Munger wrote.
BRK-A closed Friday's trading at $221,180, down $1,070 or 0.48%. In the after-hours, BRK-B was up $0.15 or 0.10% to $147.56.
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