(BRK.A), (BRK.B)
Berkshire Hathaway, the conglomerate led by Warren Buffett, reported a substantial increase in its annual earnings for 2024, driven by strong performance in its insurance businesses and foreign currency gains. The company’s operating earnings surged to $47.4 billion, marking a significant rise from $37.35 billion in 2023.
The standout performer was the insurance underwriting segment, which saw its profits jump to $9.02 billion, up from $5.43 billion the previous year. This increase was fueled by improved underwriting results and disciplined risk management. Additionally, insurance investment income rose sharply to $13.67 billion, compared to $9.57 billion in 2023, benefiting from higher interest rates and strong investment performance.
Berkshire’s railroad subsidiary, BNSF, remained relatively stable, generating $5.03 billion in earnings, slightly down from $5.09 billion in 2023. Meanwhile, Berkshire Hathaway Energy posted an impressive rise, contributing $3.73 billion, up from $2.33 billion, thanks to improved utility earnings and renewable energy investments.
Among Berkshire’s other controlled businesses, including manufacturing, retail, and services, earnings held steady at $13.07 billion, a marginal decrease from the previous year’s $13.36 billion. However, earnings from non-controlled businesses, which include stakes in Kraft Heinz and Occidental Petroleum, declined to $1.52 billion from $1.75 billion.
A notable boost came from foreign currency exchange gains, which added approximately $1.1 billion to the bottom line in 2024, compared to just $211 million in 2023. This helped drive a category labeled “Other” from a loss of $175 million in 2023 to a positive $1.4 billion in 2024.
Berkshire’s operating earnings were particularly strong in the fourth quarter, soaring 71% compared to the same period in 2023. Additionally, the company’s cash position reached an all-time high of $334 billion, reflecting Buffett’s disciplined approach to capital allocation and the firm’s strong cash flow generation.
Berkshire Hathaway’s strong performance in 2024 underscores its ability to capitalize on interest rate movements, sound investment strategies, and operational efficiencies across its diverse business portfolio. With a robust balance sheet and a disciplined approach to capital allocation, the conglomerate remains well-positioned for future growth.
© 2025 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.