Berkshire Hathaway Reports Record Operating Profit in 2024 Fueled by Insurance and Investment Gains

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Strong performance in underwriting and investment activities drives substantial growth / Reuters


Berkshire Hathaway, the conglomerate led by renowned investor Warren Buffett, has achieved unprecedented financial results for 2024, with significant contributions from its insurance and investment sectors. The company recorded an operating profit of $47.44 billion, reflecting a remarkable 27% increase compared to the previous year's figure of $37.35 billion. This milestone marks Berkshire Hathaway's third consecutive year of record annual operating profits, highlighting the resilience and strength of its diversified business model.

The fourth quarter of 2024 saw an extraordinary surge in operating profit, which skyrocketed by 71% to reach $14.53 billion. This translates to approximately $1,010 per Class A share, significantly up from $8.48 billion reported in the same quarter the prior year. The growth can be attributed to substantial gains in the company's insurance operations, as well as favorable shifts in foreign currency exchange rates that enhanced profitability.

In terms of net income, Berkshire Hathaway's quarterly figures totaled an impressive $19.69 billion, or $13,695 per average equivalent share. This growth was primarily driven by rising valuations of its key holdings, including major stakes in Apple and American Express. For the entire year, the company reported a net income of $89 billion, underscoring its strong performance across various investment portfolios.

Berkshire Hathaway's cash reserves also reached new heights, amounting to a record $334.2 billion by the end of 2024. This figure represents an increase of $9 billion from the previous quarter, showcasing the company's robust liquidity position. In line with its investment strategy, Berkshire reduced its holdings in prominent U.S. stocks, including Citigroup and Bank of America, while simultaneously increasing its investments in short-term Treasury bills.

These impressive results not only highlight Berkshire Hathaway's financial health but also reflect the effectiveness of its diversified investment strategies and successful insurance operations. The significant contributions from underwriting earnings and investment income serve as a testament to Warren Buffett's long-term vision and management approach, reinforcing the company's position as a leader in the financial sector.

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