Warren Buffett’s Berkshire Hathaway reported a 71% year-over-year increase in operating earnings after taxes, reaching a record $14.5 billion for the fourth quarter. The company’s operating profit rose 27% to $47.4 billion in 2024, up from $37.3 billion in 2023.
Buffett attributed the strong performance to improved investment income due to increasing Treasury Bill yields and increased holdings of short-term securities. Insurance businesses, particularly Geico, contributed significantly to this growth, with a 66% increase in underwriting earnings to $9 billion in 2024.
Berkshire’s cash reserves also surged to a new high of $334.2 billion for the fourth quarter, up from $167.6 billion last year. However, Buffett acknowledged that his time at Berkshire may be nearing an end, with Greg Abel poised to take over as CEO and continue writing annual letters to investors.
In a statement, Buffett expressed confidence in Abel’s leadership and shared his commitment to transparency and honesty with shareholders. With Buffett’s expected departure, the company will now write its annual letters under new leadership, aiming to maintain the same high standards of accountability and openness that have defined Berkshire’s success.
Source: https://edition.cnn.com/2025/02/22/business/berkshire-hathaway-earnings-record/index.html