The US investor Warren Buffett succeeded to earn from the economic recovery and rising stock prices in 2013. His investment holding Berkshire Hathaway reported during the previous year record profit and increase of the market capitalization. The profit of Berkshire Hathaway jumped by nearly 30% to $ 19.5 billion USD (or 14.1 billion EUR), as the company reported officially today. The company’s revenues increased with 12% to a value of 182 billion USD. Berkshire Hathaway succeeded to report better deals in the insurance business and trade.
The holding cash reserves have grown only in the last quarter of the year with nearly 6 billion USD to 48.2 billion USD. The management and traders of the company succeeded to use properly the rising stock prices and the shocks from the last quarter of 2013. However, the good financial report has its negative features. The accounting value of the shares rose last year by 18.2%, which is the same result with 2012 and the company failed to reach growth in profit and market capitalization. Also the growth of the shares stayed under the rise of the USD stock index S&P 500, which grew with 32.4% in 2013. This is important for the US investor Warren Buffett, who always takes the index as important and compares his company growth with it.
In the long term, however, Buffett continues to have much luck with his investments. Since the launch of the holding company in 1965 the accounting value per share has increased by nearly 20% per year, significantly more than the overall market growth.