Warren Buffett’s Berkshire Hathaway reported record operating earnings of $47.4 billion in 2024. Despite this strong performance, more than half of the company’s 189 operating businesses saw a decline in earnings. Buffett attributed the overall success to increased investment income from improved Treasury Bill yields and larger holdings in short-term securities.
At the end of 2024, Berkshire’s cash and cash-like securities totaled $334.2 billion, nearly double the previous year’s amount. However, the value of the company’s equity portfolio fell to $272 billion from $354 billion, largely due to major sales of Berkshire’s stake in Apple. In his annual letter to shareholders, Buffett defended the company’s growing cash pile, stating, “Despite what some commentators currently view as an extraordinary cash position at Berkshire, the great majority of your money remains in equities.” He reassured investors of Berkshire’s continued commitment to investing in equities, primarily American companies.
Buffett also acknowledged mistakes made over the years in assessing the future economics of acquired businesses and the abilities or fidelity of managers hired by Berkshire.
Berkshire’s record $47.4B operating earnings
He noted that Greg Abel, who will soon take over as CEO, shares the company’s credo and will maintain transparency in future letters to shareholders.
Berkshire Hathaway’s total revenues for 2024 reached $371.4 billion, up from $364.5 billion in the previous year. Investment gains totaled $41.6 billion, down from $58.9 billion in 2023. The company reported net earnings, including investment gains, of $89 billion, a decrease from $96.2 billion in 2023.
Buffett highlighted Berkshire’s significant tax contributions, noting the $26.8 billion paid to the US government in 2024, which accounted for about 5% of what all corporate America paid. He also emphasized the long-term benefits of reinvesting rather than distributing dividends. The annual shareholders’ meeting, scheduled for May 3, will feature a slightly altered schedule, with the Q&A session starting at 8:00 a.m. and concluding around 1:00 p.m. Buffett will be joined by vice chairmen Greg Abel and Ajit Jain for part of the session.
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