Berkshire Hathaway reports record cash as earnings pop in Q4

Berkshire Hathaway Inc (NYSE: BRK.B) says its operating earnings increased significantly on the back strength in its insurance business in the fourth quarter. The stock has gained a little under 30% since late October.

Berkshire’s operating earnings up 28%

The conglomerate holding company of the legendary investor Warren Buffett saw operating earnings climb a whopping 28% in to $8.481 billion in Q4.

At $37.35 billion, its full-year operating earnings also came in up 17% on Saturday. Berkshire’s usual disclaimer read:

Overall earnings of the multinational more than doubled to $37.57 billion in the recently concluded quarter. You can read Warren Buffett's 2024 annual letter to shareholders on this link.

Insurance underwriting jumped 430% in Q4

Berkshire Hathaway ended the quarter with a record $167.6 billion in cash – down from $157.2 billion a year ago, as per the earnings report.

Lower claims and an increase in premium rate saw net underwriting earnings attributed to Geico print at $5.42 billion in 2023. Insurance underwriting at large jumped a whopping 430% to $848 million in Q4.

On the downside, though, operating earnings in utilities and energy as well as the railroads segment decline on a year-over-year basis in the fourth quarter.

Warren Buffett also told investors today that Berkshire Hathaway may only perform slightly between than an average U.S. company partially because buying opportunities are rather limited at present.