Berkshire Rail, Insurance Units Earnings Slip on Weak Demand
- Conglomerate still reported record operating earnings for year
- Buffett takes issue with critiques of share buybacks in letter
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Warren Buffett’s Berkshire Hathaway Inc. reported weaker results in some of its key businesses, underscoring fears the US economy is facing a bumpy road ahead. But that didn’t dent the billionaire investor’s optimism about America.
The conglomerate saw operating earnings fall 14% to $6.7 billion in the fourth quarter, as higher prices for materials and labor hit the firm’s rail road and insurance operations. Still, Buffett reminded investors to keep the faith in America’s economy, just as he touted Berkshire’s record operating earnings of $30.8 billion for the year.