Berkshire Hathaway reported a significant increase in fourth-quarter earnings from its operating businesses, largely driven by its insurance sector, while its cash reserves reached an all-time high. The conglomerate, led by Warren Buffett, announced that its operating profit surged 71% to $14.527 billion in the last quarter of 2024. This growth was primarily due to a 302% increase in insurance underwriting to $3.409 billion and a nearly 50% rise in insurance investment income to $4.088 billion compared to the same period the previous year. For the full year, operating earnings rose by 27% to $47.437 billion. Buffett highlighted that improved Treasury Bill yields and increased holdings of short-term securities contributed to a predictable gain in investment income. Additionally, the insurance business, particularly GEICO, significantly boosted earnings. However, Berkshire anticipates a pre-tax loss of approximately $1.3 billion for its insurance segment due to wildfires in Southern California. By the end of 2024, Berkshire Hathaway’s cash holdings reached $334.2 billion, up from $325.2 billion at the end of the third quarter. Buffett defended the substantial cash position, emphasizing that the majority of shareholders’ funds remain invested in equities. Investment gains slowed in the fourth quarter to $5.167 billion from $29.093 billion the previous year, partly due to reduced stock investments, including a sale of a portion of its Apple stake. Total earnings for the quarter were $19.694 billion, a 47% decrease from the previous year, with the annual bottom line at $88.995 billion, down 7.5% from 2023. — news from CNBC
