From Financial Modeling Prep: 2025-02-23 05:43:41

Warren Buffett’s Berkshire Hathaway achieved record operating earnings in 2024, reaching $47.4 billion for the year and $14.5 billion in Q4. The conglomerate’s cash reserves hit an all-time high of $334.2 billion, with insurance businesses leading the growth, doubling underwriting profit to $9 billion. Investment income surged 43% to $13.7 billion.

Despite a 7.5% decline in net earnings, Berkshire’s strong operating performance showcased its financial strength. Railroad and utility divisions saw moderate growth, while the company paid a record $26.8 billion in U.S. corporate income taxes. With Greg Abel set to take over as CEO, investors are keen on Berkshire’s future strategies.

Berkshire’s cash reserves signal patience in deploying capital, with potential buybacks or large-scale investments expected in 2025. The strength of its insurance business and higher investment income offset weaknesses in other segments, positioning the company well in the current rate environment. Investors are closely monitoring key metrics for future performance.

Despite challenges in some operating businesses, Berkshire Hathaway’s record operating profits demonstrate its resilience. With Greg Abel’s leadership transition, strong cash reserves, and insurance gains, Berkshire remains a stable long-term investment. The focus now shifts to capital deployment in 2025 and sustaining momentum in a changing economic landscape.



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