Berkshire's Q4 operating profit increased by 71% year-on-year, exceeding expectations, with a significant increase in insurance profits, an increase in investments in Japan, and cash reserves reaching a historic high.

On Saturday, February 22nd, Berkshire Hathaway announced its fourth quarter financial report: Berkshire Hathaway's operating profit in the fourth quarter was $14.53 billion, exceeding the expected $9.87 billion, a year-on-year increase of 71%. This growth was mainly due to a significant increase in insurance investment profit, which grew by 48% to $4.1 billion against the backdrop of rising interest rates. Insurance underwriting operating profit was $3.41 billion, insurance investment operating profit was $4.09 billion, BNSF operating profit was $1.28 billion, and Berkshire Hathaway Energy operating profit was $0.729 billion. Other holding business operating profit was $3.26 billion, and non-holding business operating profit was $0.695 billion. Net profit was $19.69 billion, down from $37.574 billion in the same period last year. The insurance float was $171 billion. Looking at the full-year performance in 2024: Operating income: Total revenue in 2024 was $371.433 billion, up from $364.482 billion in the same period last year. Net profit: Net income in 2024 was $88.995 billion, down from $96.223 billion in the same period last year. Berkshire Hathaway's financial report shows that as of December 31st, 71% of the fair value of its equity investments was concentrated in American Express, Apple, Bank of America, Chevron, and Coca-Cola. Berkshire Hathaway increased its cash position in the fourth quarter to a record high of $334.2 billion. Buffett's shareholder letter stated that in 2024, there was a significant increase in short-term US Treasury holdings, leading to foreseeable substantial investment gains. Increased investments in Japan In addition, Berkshire Hathaway's annual report stated that they increased their investments in Japan. Buffett's shareholder letter indicated that Berkshire may gradually increase its stake in Japan's five major trading companies. Buffett mentioned that Berkshire initially agreed to keep its stake in Itochu Corporation, Marubeni Corporation, Mitsui & Co., Mitsubishi Corporation, and Sumitomo Corporation below 10%. However, as their stake approached this limit, these companies agreed to "modestly relax" the ownership limits. Buffett also stated that in the future, Berkshire will seek other ways to "efficiently cooperate" with these companies. This article is translated from "Wall Street View" by Zhao Ying, edited by GMTEight, and translation by Li Cheng.