Berkshire Hathaway (BRK.B), the holding company controlled by legendary investor Warren Buffett, bought back a record $27 billion U.S. of its own stock in 2021.
The share buybacks came as Berkshire Hathaway’s cash pile grew to a near record $146.7 billion U.S. at the end of last year.
In his annual letter to shareholders, which coincides with Berkshire Hathaway issuing its fourth quarter and full year financial results, Buffett said he continues to see few opportunities in an expensive and overheated stock market and sees buying back his own stock as the best way to create shareholder value.
Berkshire’s operating earnings surged 45% in the fourth quarter due to a continued rebound in its railroad, utilities, and energy businesses. The holding company owns a diverse number of businesses including the Dairy Queen fast food restaurant chain, the Fruit of the Loom underwear maker, and BNSF railroad.
In his shareholder letter, Buffett also singled out Berkshire Hathaway’s investment in technology giant Apple (AAPL) as a major success for the company. Buffett began accumulating Apple stock in 2016 and its stake in the iPhone maker is now worth $160 billion U.S., taking up 40% of Berkshire Hathaway’s equity portfolio.
Berkshire Hathaway is now Apple’s largest shareholder, outside of index and exchange-traded funds. Berkshire has enjoyed regular dividends from the tech giant over the years, averaging about $775 million U.S. annually.
