Why I Sold My Entire Berkshire Stake

  • Berkshire’s Operating Earnings improved 21% year over year driven by higher insurance rates and higher interest rates.
  • BNSF and BHE both reported steep YoY declines in earnings, with Warren Buffett providing cautious commentary on both in his letter.
  • GEICO posted record profits, partly by cutting advertising. It lost 9.8% of its customers in 2023.
  • Berkshire’s reinvestment track record, aside from Apple, has been terrible over the past 10 years. Even with Apple, I believe it’s been poor.
  • I believe Berkshire is overvalued right now.

With what has become an enjoyable annual tradition, I spent Saturday morning drinking coffee (in Florida this year!) and reading Berkshire Hathaway’s (NYSE:BRK.A) (NYSE:BRK.B) 2023 Annual Report. After a heartfelt tribute to Charlie Munger, Warren Buffett went