Berkshire Hathaway reports record operating profit for 2024
Warren Buffett’s Berkshire Hathaway posted its third consecutive record annual operating earnings on Saturday, strengthened by gains in underwriting profits and investment income in its insurance businesses.
The company’s reserves soared to a record $334.2 billion, doubling from the previous year, largely due to stock sales.
Record-Setting Financial Performance
- Annual operatingcompany’s$47.44 billion, a 27% increase from $37.35 billion in 2023.
- Q4 operating profit: $14.53 billion, a 71% rise from $8.48 billion in the previous year.
- Annual net income: $89 billion, bolstered by gains in Apple, American Express, and other investments.
Buffett attributed much of the success to higher U.S. Treasury yields and Geico’s improved performance, as loss rates from accidents declined.
Berkshire’s Insurance Strength and Cash Reserves
The company’s insurance segment, including Geico, playeGeico’scial role in boosting profits. Buffett emphasized that BerkshiBerkshire’sinvesting in businesses over holding cash,company’sgnificant portion of profits still stemmed from interest earned on its large cash reserves.
The firm has been a net seller of stocks for nine consecutive quarters, offloading $143.4 billion in stocks in 2024.
- Major sales included:
- 62% of its Apple holdings
- One-third of its Bank of America stake
Meanwhile, Berkshire Hathaway spent only $2.9 billion on stock buybacks in 2024, and no repurchases have occurred since May 2024.
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Diversified Business Portfolio
Beyond insurance and investments, Berkshire Hathaway’s diverse holdings include:
- BNSF Railroad
- Industrial and chemical companies
- Retail brands like Dairy Queen, Fruit of the Loom, and See’s Candies
Buffett’s PerspectiHathaway’sannual letter to shareholders, Buffett acknowledged that while 53% of Berkshire’s 189 operating businesses saw lower earnings, theSee’sany stillBuffett’sd better than expected.
Thomas Russo, a longtime Berkshire investor, praised the results:
Berkshire’s incredible numbers. You really saw the power of Berkshire’s insurance operations and investments.”
Looking Ahead
Berkshire’s record cash reserves and strategic d”vestments position the company for future opportunities. HoBerkshire’sett’s preference for investing in busi”esses over stocBerkshire’sh suggests the company may seek new acquisitions or strategic investments in 2025.
Buffett’s