Berkshire Hathaway Letter 1965
1965 annual report showing first profitable year under new management
Berkshire Hathaway Letter 1965
Author: Malcolm G. Chace, Jr. & Kenneth V. Chace Date: November 9, 1965
Overview
This letter reports fiscal year ending October 2, 1965 with net earnings of $2,279,206 compared to $125,586 the prior year. This was Berkshire's first profitable year after years of losses. The letter also announces leadership transition.
Key Points
Financial Performance
| Metric | 1965 | 1964 |
|---|---|---|
| Net Earnings | $2,279,206 | $125,586 |
| Bank Loans Paid Off | $2,500,000 | - |
| Shares Repurchased | 120,231 | - |
| Outstanding Shares | 1,017,547 | - |
No federal income taxes were payable due to loss carryovers.
Leadership Transition
"After more than fifty years of service, Mr. Seabury Stanton resigned as a director and as President, and Mr. Kenneth V. Chace was elected to succeed him."
Restructuring
The company closed unprofitable King Philip Plants A and E in Fall River, Massachusetts. The remaining operations continued in Rhode Island and New Bedford, Massachusetts.
Capital Investment
$811,812 was invested in new machinery to reduce costs and improve quality.
Source
Malcolm G. Chace, Jr. & Kenneth V. Chace, November 9, 1965.