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Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).
For the three months ended in Dec. 2023, Berkshire Hathaway spent $5,708 Mil on purchasing property, plant, equipment. It gained $0 Mil from selling property, plant, and equipment. It spent $40 Mil on purchasing business. It gained $0 Mil from selling business. It spent $63,824 Mil on purchasing investments. It gained $62,144 Mil from selling investments. It paid $0Mil for net Intangibles purchase and sale. And it received $77 Mil from other investing activities. In all, Berkshire Hathaway spent $7,351 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Dec. 2023.
The historical data trend for Berkshire Hathaway's Cash Flow from Investing can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Berkshire Hathaway Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Cash Flow from Investing | Get a 7-Day Free Trial | -5,621.00 | -37,757.00 | 29,392.00 | -87,601.00 | -32,663.00 |
Berkshire Hathaway Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
Cash Flow from Investing | Get a 7-Day Free Trial | -6,092.00 | -7,919.00 | 10,655.00 | -28,048.00 | -7,351.00 |
Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).
If a company spends cash on property, plant and equipment (PPE), this will reduce their cash position. This is called Capital Expenditures (CPEX).
Likewise, if a company buys another company for cash, this will reduce their cash position.
Berkshire Hathaway's Cash Flow from Investing for the fiscal year that ended in Dec. 2023 is calculated as:
Cash Flow from Investing | (A: Dec. 2023 ) | ||||
= | Purchase Of Property, Plant, Equipment | + | Sale Of Property, Plant, Equipment | + | Purchase Of Business |
= | -19409 | + | 0 | + | -8604 |
+ | Sale Of Business | + | Purchase Of Investment | + | Sale Of Investment |
+ | 0 | + | -251469 | + | 246134 |
+ | Net Intangibles Purchase And Sale | + | Cash From Discontinued Investing Activities | + | Cash From Other Investing Activities |
+ | 0 | + | 0 | + | 685 |
= | -32,663 |
Berkshire Hathaway's Cash Flow from Investing for the quarter that ended in Dec. 2023 is calculated as:
Cash Flow from Investing | (Q: Dec. 2023 ) | ||||
= | Purchase Of Property, Plant, Equipment | + | Sale Of Property, Plant, Equipment | + | Purchase Of Business |
= | -5708 | + | 0 | + | -40 |
+ | Sale Of Business | + | Purchase Of Investment | + | Sale Of Investment |
+ | 0 | + | -63824 | + | 62144 |
+ | Net Intangibles Purchase And Sale | + | Cash From Discontinued Investing Activities | + | Cash From Other Investing Activities |
+ | 0 | + | 0 | + | 77 |
= | -7,351 |
Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-32,663 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Berkshire Hathaway (NYSE:BRK.B) Cash Flow from Investing Explanation
Cash flow from investing contains nine items:
1. Purchase Of Property, Plant, Equipment:
Purchase of PPE indicates the amount used to purchase property, plant, and equipment.
Berkshire Hathaway's purchase of property, plant, equipment for the three months ended in Dec. 2023 was $-5,708 Mil. It means Berkshire Hathaway spent $5,708 Mil on purchasing property, plant, equipment.
In the capital spending for property, plant and equipment (PPE), some part of spending may be from the expansion of business. The business needs more property, plant and equipment (PPE) as it grows. Another part may be from replacement of the property, plant and equipment (PPE) of existing business. For some companies, the cash spent on replacing of the property, plant and equipment (PPE) of the existing business will be close to the depreciation of property, plant and equipment (PPE) reported in the income statement.
In Warren Buffett's definition of Owner's Earnings, he deducts the estimate of the cost of replacing the property, plant and equipment (PPE) of the existing business from cash flow from operations. The cash spent on the new property, plant, and equipment is not deducted. The reason is because these are not costs of the existing business. In his 1986 letter to shareholders, Warren Buffett wrote this about owner earnings:
"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume....Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."
2. Sale Of Property, Plant, Equipment:
Sale of PPE indicates the amount gained from selling property, plant, and equipment.
Berkshire Hathaway's sale of property, plant, equipment for the three months ended in Dec. 2023 was $0 Mil. It means Berkshire Hathaway gained $0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
Berkshire Hathaway's purchase of business for the three months ended in Dec. 2023 was $-40 Mil. It means Berkshire Hathaway spent $40 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
Berkshire Hathaway's sale of business for the three months ended in Dec. 2023 was $0 Mil. It means Berkshire Hathaway gained $0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
Berkshire Hathaway's purchase of investment for the three months ended in Dec. 2023 was $-63,824 Mil. It means Berkshire Hathaway spent {stock_data.stock.currency_symbol}}63,824 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
Berkshire Hathaway's sale of investment for the three months ended in Dec. 2023 was $62,144 Mil. It means Berkshire Hathaway gained $62,144 Mil from selling investments.
7. Net Intangibles Purchase And Sale:
Net Intangibles purchase and sale means the net cash inflow received by a company that comes from the purchase and sale of intangibles. It equals the cash received from sale of intangibles minus the cash spent on purchasing intangibles.
Berkshire Hathaway's net Intangibles purchase and sale for the three months ended in Dec. 2023 was $0 Mil. It means Berkshire Hathaway paid $0 Mil for net Intangibles purchase and sale.
8. Cash From Discontinued Investing Activities:
Cash from discontinued investing activities means the cash received by a company that comes from the discontinued investing activities.
Berkshire Hathaway's cash from discontinued investing activities for the three months ended in Dec. 2023 was 0 Mil. It means Berkshire Hathaway paid $0 Mil for discontinued investing activities.
9. Cash From Other Investing Activities:
Cash from other investing activities means the cash received by a company that comes from other investing activities.
Berkshire Hathaway's cash from other investing activities for the three months ended in Dec. 2023 was $77 Mil. It means Berkshire Hathaway received $77 Mil from other investing activities.
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Ajit Jain | director, officer: Vice Chairman | 100 FIRST STAMFORD PLACE, BHRG, STAMFORD CT 06902 |
Murphy Thomas S Jr | director | C/O CRESTVIEW ADVISORS, 667 MADISON AVENUE, 10TH FLOOR, NEW YORK NY 10021 |
Warren E Buffett | director, 10 percent owner, officer: Chairman and CEO | 3555 FARNAM ST, STE 1440, OMAHA NE 68131 |
Charlotte Guyman | director | 3324 78TH PL. N.E., MEDINA WA 98004 |
Susan A. Buffett | director | 808 CONAGRA DRIVE, OMAHA NE 68102 |
Christopher C Davis | director | C/O GRAHAM HOLDINGS COMPANY, 1300 NORTH 17TH STREET, SUITE 1700, ARLINGTON VA 22209 |
Ronald L Olson | director | EDISON INTERNATIONAL, 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770 |
Kenneth I Chenault | director | C/O GENERAL CATALYST, 20 UNIVERSITY ROAD, 4TH FLOOR, CAMBRIDGE MA 02138 |
Gregory Abel | director, officer: Vice Chairman | 666 GRAND AVE., STE.500, DES MOINES IA 50309 |
Meryl B Witmer | director | 655 THIRD AVENUE, 11TH FLOOR, NEW YORK NY 10017 |
Thomas S Murphy | director | C/O WALT DISNEY CO, 500 S BUENA VISTA STREET, BURBANK CA 91521-1010 |
Bill & Melinda Gates Foundation Trust | 10 percent owner | 2365 CARILLON POINT, KIRKLAND WA 98033 |
Stephen B Burke | director | 41 CENTRAL PARK WEST - APT 11A, NEW YORK NY 10023 |
Susan L Decker | director | C/O YAHOO INC, 701 FIRST AVE, SUNNYVALE CA 94089 |
Gates William H Iii | director | 2365 CARILLON POINT, KIRKLAND WA 98033 |
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