Posted 2/26/2024, 3:10:58 PM
Berkshire Posts Record Profits After Munger's Passing, But Faces Questions on Capital Allocation Without Legendary Leaders
- Berkshire Hathaway reported record annual profits and fourth-quarter cash balances in Warren Buffett's annual letter following Vice Chair Charlie Munger's death
- Morningstar analyst says Berkshire has had high cash balances, earning a lot on that now with high interest rates, making it less concerning
- Berkshire has struggled to find good acquisition deals to put excess cash to work in
- A dividend or increased share repurchases may come under next leadership to return more capital to shareholders
- Berkshire designed to decentralize operations to run without Buffett/Munger, but their capital allocation expertise still key