Berkshire Hathaway reports 71% surge in earnings, but expects $1.3B loss from wildfires

From CNBC: 2025-02-22 09:04:35

Berkshire Hathaway reported a 71% surge in fourth-quarter earnings, driven by insurance, with a record $14.527 billion profit. Buffett praised the gains, despite 53% of businesses seeing a decline. However, wildfires in Southern California are expected to cause a $1.3 billion pre-tax loss in the insurance sector.

Berkshire Hathaway ended 2024 with $334.2 billion in cash, up from $325.2 billion. Buffett defended the large cash holdings, emphasizing the majority remains in equities. Investment gains slowed to $5.167 billion in the fourth quarter, with Berkshire selling some Apple stock during the year.

Berkshire Hathaway’s Class A shares rose over 25% in 2024. Despite the decline in investment gains, Buffett remains confident in the company’s future. The conglomerate continues to prioritize equities, with Buffett assuring shareholders that the majority of their money will be deployed in this asset class.

Read more: Berkshire Hathaway (BRK.A) earnings Q4 2024