Warren Buffett's Berkshire Hathaway recorded record 2013 profits, according to early estimates from analysts at Nomura Holdings Inc. and Keefe Bruyette & Woods. Net income was at least $18 billion in 2013. That compares with $14.8 billion in 2012, the previous record.
This profit growth comes on the back of Buffett's large rescue investments in beleaguered firms in the wake of the 2008 financial crisis. Buffett was sitting on cash at the time, and had the opportunity to invest at bargain basement prices when the rest of the financial world was stricken by panic. These investments included stakes in candy-maker Mars, which last year repaid Berkshire for a $4.4 billion loan its subsidiary Wrigley took in 2008, giving Berkshire $680 million in profits. Berkshire's big crisis-era investments also included Goldman Sachs and Bank of America, as well as stakes in Heinz, General Electric, Dow Chemical Co., and Swiss Re Insurance.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
Join more than 350,000 subscribers and keep yourself informed with a selection of The Week’s most interesting, enlightening and entertaining stories - plus daily puzzles.
Join more than 350,000 subscribers and keep yourself informed with a selection of The Week’s most interesting, enlightening and entertaining stories - plus daily puzzles.