Berkshire Hathaway's Operating Earnings Surge 71% In Q4

Warren Buffett’s Berkshire Hathaway reported a record 71% increase in fourth-quarter operating earnings, reaching $14.5 billion, CNN reported.

Berkshire continues to stockpile cash, reaching a record $334.2 billion in Q4, up from $325.2 billion in Q3. I Photo: Na Swan So Fine Wiki

For the full year 2024, operating profit rose 27% to $47.4 billion, up from $37.3 billion in 2023. However, net income fell 7.5% year-over-year to $89 billion.

"Berkshire did better than I expected," Buffett wrote in his annual letter to investors. He credited the strong performance to higher Treasury Bill yields and a larger portfolio of short-term liquid securities.

GEICO's turnaround played a significant role in the earnings surge. Berkshire's insurance underwriting profits jumped 66% to $9 billion, up from $5.4 billion in 2023. Buffett praised Todd Combs, saying he had modernized GEICO's operations and improved efficiency.

Meanwhile, Berkshire continues to stockpile cash, reaching a record $334.2 billion in Q4, up from $325.2 billion in Q3.

This follows reductions in Apple and Bank of America holdings last year. A year ago, Berkshire had $167.6 billion in cash, nearly half of its current reserves.