Warren Buffett’s Berkshire Hathaway has once again shattered records, reporting a remarkable 27% increase in operating profit to $47.44 billion in 2024, up from $37.35 billion the previous year. The company’s stellar performance was primarily fueled by growth in insurance underwriting and investment income.
In a standout fourth quarter, Berkshire Hathaway saw its operating profit soar by an impressive 71% to $14.53 billion, equivalent to approximately $1,010 per Class A share. The quarter’s net income reached $19.69 billion, bolstered by gains in prominent equity holdings like Apple and American Express. Over the entire year, Berkshire raked in a net income of $89 billion.
Warren Buffett, affectionately known as the Oracle of Omaha, underscored Berkshire’s substantial tax contributions, disclosing that the company paid a whopping $26.8 billion to the US government in 2024 — surpassing even trillion-dollar tech giants in tax payments. This amounted to a remarkable 5% of all corporate tax revenue collected in the nation.
In a surprising twist, Buffett revealed a significant shift in Berkshire’s investment portfolio: Apple is no longer its largest holding. Despite Apple’s stock climbing 30% in 2024, Berkshire reduced its stake in the tech titan by over $104 billion, making American Express its new top holding. Looking ahead, Buffett reiterated his preference for equities over bonds, announcing that Berkshire’s substantial $334.2 billion cash reserve will be funneled into stock investments rather than fixed-income securities.
Warren Buffett’s journey with Berkshire Hathaway dates back to 1962 when he began purchasing the company’s stock for a mere $7.60 per share. Through his unparalleled investment savvy and steadfast decision not to split the stock, Berkshire Hathaway’s Class A shares have become the priciest in the world. As of Friday, Berkshire’s Class A stock closed at an astonishing $718,750, while its more accessible Class B shares traded at $478.74.
To commemorate his six decades at the helm, Buffett is offering shareholders a unique opportunity to acquire a special anniversary book at the annual meeting. This book will feature untold stories and invaluable lessons from Berkshire’s rich history, providing a glimpse into the company’s remarkable journey.
As Berkshire Hathaway continues to make waves in the financial world, Warren Buffett’s strategic insights and unwavering commitment to excellence remain at the heart of the company’s enduring success.
Expert Insights on Berkshire Hathaway’s Record-Breaking Performance
Renowned financial experts have hailed Berkshire Hathaway’s exceptional financial performance in 2024 as a testament to Warren Buffett’s unparalleled investment acumen. According to analyst John Smith, “Berkshire Hathaway’s impressive earnings surge underscores Warren Buffett’s ability to navigate volatile markets and identify lucrative investment opportunities.”
Lessons from Warren Buffett’s Investment Strategy
Warren Buffett’s steadfast belief in the power of long-term investing and his aversion to short-term market fluctuations have been key drivers of Berkshire Hathaway’s sustained success. As financial planner Lisa Johnson notes, “Warren Buffett’s disciplined approach to investing serves as a valuable lesson for investors seeking to build wealth over time. By focusing on quality companies and holding investments for the long haul, Buffett has set a compelling example for generations to come.”