Berkshire Hathaway smashes profit record as earnings surge 71% in Q4, cash pile hits $334 billion

Warren Buffett’s Berkshire Hathaway delivered another record-breaking year, with operating profit surging 27% to $47.44 billion in 2024, up from $37.35 billion the year before. The company’s strong performance was driven by gains in insurance underwriting and investment income.

The fourth quarter was particularly strong, with operating profit jumping 71% to $14.53 billion, or about $1,010 per Class A share. Net income for the quarter reached $19.69 billion, boosted by gains in Apple, American Express, and other equity holdings. For the full year, Berkshire’s net income totaled $89 billion.

Buffett highlighted the company’s significant tax contributions, revealing that Berkshire paid $26.8 billion to the US government in 2024 — more than any other corporation, including trillion-dollar tech firms. This amounted to 5% of all corporate tax revenue collected in the country.

The Oracle of Omaha also revealed a major shift in Berkshire’s portfolio: Apple is no longer its largest holding. Despite Apple’s stock rising 30% in 2024, Berkshire’s stake in the tech giant fell by over $104 billion, making American Express its top holding.

Looking ahead, Buffett reaffirmed his preference for stocks over bonds, stating that Berkshire’s massive $334.2 billion cash reserve will be deployed into equities rather than fixed-income investments.

Warren Buffett started buying Berkshire Hathaway stock in 1962 for just $7.60 per share. Over the decades, his investment acumen and refusal to split the stock turned it into the world’s most expensive share. On Friday, Berkshire’s Class A stock closed at a staggering $718,750, while its more affordable Class B shares traded at $478.74.

To mark his 60 years at the helm, Buffett is offering shareholders a chance to purchase a special anniversary book at the annual meeting, featuring untold stories and lessons from Berkshire’s history.

(With inputs from agencies)