Berkshire Hathaway 4Q Profit Soars

February 28, 2010  by in UnCategorized   

By Home Furnishings Business in Financial Reports on March 1, 2010

Fourth quarter profit for Warren Buffett's Berkshire Hathaway jumped on recovery of derivatives tied to the world's stock markets.

Net income for the company rose $3.06 billion, or $1,969 per share, from $117 million, or $76 per share, in the same period last year, according to the company's annual report released Saturday.

The profit increase was the company's third in a row.

"We've put a lot of money to work during the chaos of the last two years," Buffett said in his annual letter to shareholders. "It's been an ideal period for investors: A climate of fear is their best friend."

Since 2007 Buffett has invested in financial companies harmed by the recession. These companies, including Goldman Sachs Group, that looked to Buffett for money are paying Berkshire interest of 10 percent or more.

For fiscal 2009, Berkshire reported net income of $8.06 billion, a 61 percent increase from the previous year.

In his 19-page letter to shareholders Buffett mentions nine of chief executives at a number of his holdings, including Ron and Irv Blumkin from Omaha-based Nebraska Furniture Mart and Bill Kimbrell from Houston-based Star Furniture.

Other furniture-related companies Berkshire owns are Jordan's Furniture, R.C. Willey Home Furnishings, Shaw Inds. and Cort Business Rental.

Click here to see the company's annual report in full.