10/8/2023 0 Comments The chosen well of souls 4k![]() As we stated in last year’s letter, neither Charlie Munger, my partner in managing Berkshire, nor I agree with that rule. It resulted from a new GAAP rule, imposed in 2018, that requires a company holding equity securities to include in earnings the net change in the unrealized gains and losses of those securities. That $53.7 billion gain requires comment. Each of those components of earnings is stated on an after-tax basis. The components of that figure are $24 billion of operating earnings, $3.7 billion of realized capital gains and a $53.7 billion gain from an increase in the amount of net unrealized capital gains that exist in the stocks we hold. To the Shareholders of Berkshire Hathaway Inc.:īerkshire earned $81.4 billion in 2019 according to generally accepted accounting principles (commonly called “GAAP”). Warren Buffett released his annual letter to Berkshire Hathaway shareholders on Saturday.
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