近期，受卡夫亨氏投资损失以及暂停回购等影响，伯克希尔·哈撒韦（以下简称"伯克希尔"）股价罕见大 跌。 面对下跌的伯克希尔，知名投资人段永平再度出手，卖出伯克希尔的看跌期权（put），并表示，"这个价格不 贵，希望买进来拿着"。 从过往来看，段永平都是通过卖出看跌期权来建仓和抄底。今年4月，美股大跌，段永平就是通过卖出大量的 英伟达、台积电、谷歌、苹果等看跌期权抄底。 段永平再度出手 8月5日，段永平在雪球发帖称，"今天卖了不少BRK（伯克希尔）的put，看上去这个价格不贵了，希望买进来 拿着，应该比S&P500合算。" 不过，市场显然对于伯克希尔的这份财报不满意。尤其是伯克希尔二季度对卡夫亨氏的投资确认了38亿美元 （约合人民币274亿元）的减值损失。这是巴菲特为数不多的"投资败笔"之一。 本周一，伯克希尔A股重挫2.65%。周三开盘后，涨0.4%，报697535.02美元/股。而今年5月2日，该股创下的历 史最高点为812855美元。自今年5月初"交班"以来， 伯克希尔A股累计下跌超13%，同期标普500指数却上涨 11%，伯克希尔创下数十年来相对大盘最差表现之一。 尽管股价表现不佳，伯克希尔的经营业绩依然 ...

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Delaware 47-0813844 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) 3555 Farnam Street, Omaha, Nebraska 68131 (Address of principal executive office) (Zip Code) (402) 346-1400 (Registrant's telephone number, including area code) ...

Financial Performance - Net earnings attributable to Berkshire shareholders for Q1 2025 were $4,603 million, a decrease of 63.7% compared to $12,702 million in Q1 2024[160] - Operating earnings for Q1 2025 were $9,641 million, down 13.9% from $11,222 million in Q1 2024[310] - Investment losses in Q1 2025 amounted to $5,038 million, compared to investment gains of $1,480 million in Q1 2024[310] - Net investment income increased by $295 million (11.4%) to $2,893 million in Q1 2025 compared to $2,598 million in Q1 2024[195] - Net earnings increased by $52 million (13.8%) in Q1 2025 compared to Q1 2024, driven by higher electric utility margin and tax benefits from wind production credits[215] Insurance Operations - Insurance underwriting after-tax earnings decreased by $1.3 billion in Q1 2025, with losses from Southern California wildfires amounting to approximately $860 million[162] - Insurance-underwriting income for Q1 2025 was $1,336 million, down 48.6% from $2,598 million in Q1 2024[315] - Losses and loss adjustment expenses for GEICO increased by $10 million (0.1%) in Q1 2025, with a loss ratio of 69.0%, a decrease of 3.5 percentage points from 2024[174] - Losses and loss adjustment expenses for Berkshire Hathaway Primary Group increased by $640 million (22.8%) in Q1 2025, with losses from Southern California wildfires estimated at approximately $300 million[180] - Losses and loss adjustment expenses for the Berkshire Hathaway Reinsurance Group increased by $606 million (20.2%) in Q1 2025, with losses from Southern California wildfires estimated at approximately $770 million[185] Energy Sector - After-tax earnings from Berkshire Hathaway Energy (BHE) rose by $380 million (53.0%) in Q1 2025, reflecting higher earnings from utilities and energy businesses[163] - BHE's total revenue increased to $6,356 million in Q1 2025, compared to $6,277 million in Q1 2024[211] - Net earnings attributable to BHE increased by 39.4% to $1,100 million in Q1 2025 from $789 million in Q1 2024[213] - Energy operating revenue for BHE rose to $5,506 million in Q1 2025, up from $5,245 million in Q1 2024[211] - Electric utility margin reached $1.9 billion in Q1 2025, an increase of $225 million (13.2%) from 2024, attributed to higher retail customer rates and volumes[216] Transportation Sector - After-tax earnings from BNSF increased by 6.2% in Q1 2025 compared to 2024, driven by higher volumes and improved operating efficiencies[163] - Railroad operating revenues for BNSF increased to $5,676 million in Q1 2025, up from $5,644 million in Q1 2024, driven by a 4.1% increase in unit volume[202] - BNSF's pre-tax earnings rose by 5.5% to $1,603 million in Q1 2025 from $1,519 million in Q1 2024[202] Manufacturing and Retail - Manufacturing revenues totaled $18.8 billion in Q1 2025, a slight increase of 1.3% from Q1 2024, while service and retailing revenues decreased by 5.6%[222] - Pre-tax earnings in manufacturing declined by $198 million (6.8%) in Q1 2025 compared to 2024, while service and retailing pre-tax earnings increased by $147 million (12.9%)[222] - Revenues from Clayton Homes increased by 7.4% to $2.9 billion in Q1 2025, with financial services revenues rising by 14.7%[235] - Consumer products group revenues declined by 0.4% to $3.5 billion in Q1 2025, with pre-tax earnings dropping by $105 million (29.6%) compared to 2024[240] - Retailing group revenues increased by 2.0% in Q1 2025, with BHA revenues up by 5.3% and home furnishings down by 1.4%[250] Investment and Shareholder Equity - Berkshire's shareholders' equity was $654.5 billion as of March 31, 2025, an increase of $5.1 billion since December 31, 2024[265] - The company has not repurchased any Class A or Class B shares in the first quarter of 2025, maintaining a cash reserve of at least $30 billion[288] - Average equivalent Class A shares outstanding decreased slightly to 1,438,223 in Q1 2025 from 1,439,370 in Q1 2024[311] - Average equivalent Class B shares outstanding also decreased to 2,157,335,139 in Q1 2025 from 2,159,055,134 in Q1 2024[311] Legal and Regulatory Matters - The company is involved in various legal actions, but it does not expect these to materially affect its financial condition or results of operations[285] - There were no material changes in market risks as of March 31, 2025, compared to the previous annual report[283] - The company concluded that it was more likely than not that goodwill and other indefinite-lived intangible assets were not impaired as of March 31, 2025[279] Miscellaneous - The company anticipates that future payments under insurance and reinsurance contracts will be funded by operating cash flows[273] - The total number of reportable Mine Safety Act citations for the first quarter of 2025 was not specified, but no significant violations were reported[303] - Forward-looking statements regarding future financial performance are subject to risks and uncertainties, and actual results may differ materially[282]

Financial Data and Key Metrics Changes - The company reported record attendance at its annual meeting, with 19,700 participants, up from 16,200 the previous year [2] - The company achieved record sales figures, with Candid at $317,000 compared to $283,000 the previous year [3] Business Line Data and Key Metrics Changes - Brooks reported sales of $310,000, marking an all-time record for the company [4] - Jazz Wear's sales doubled to around $250,000 compared to the previous year [4] Market Data and Key Metrics Changes - The company noted a significant increase in attendance and sales across all business lines, indicating strong market demand [5] Company Strategy and Development Direction - The management emphasized the importance of maintaining a diverse and capable board, with a focus on long-term relationships and investments, particularly in Japan [38][46] - The company is positioning itself for future opportunities, with a significant cash reserve of over $300 billion, representing about 27% of total assets, which is historically high [51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the U.S. economy, despite current challenges, and highlighted the importance of adapting to changes while maintaining a long-term perspective [95][99] - The company is prepared for future investment opportunities, emphasizing that attractive deals will arise over time [60][61] Other Important Information - The company raised significant funds for charity through the sale of a commemorative book, showcasing its commitment to social responsibility [20][23] Q&A Session All Questions and Answers Question: Has your view on trade barriers changed? - Management discussed the historical context of trade barriers and emphasized the importance of balanced trade for global prosperity [26][30] Question: Do you think the Bank of Japan's rate hike will deter further investments in Japan? - Management expressed confidence in their Japanese investments and indicated a long-term commitment to holding these positions [36][38] Question: Is the high cash reserve a derisking strategy or for future capital allocation? - Management clarified that the cash reserve is not solely for Greg Abel's future flexibility but is a strategic position to capitalize on attractive investment opportunities as they arise [51][52] Question: With high interest rates, do you still believe in being greedy when others are fearful? - Management reiterated the advantages of investing in stocks over real estate due to the ease of transactions and opportunities in the stock market [64][66] Question: How will AI affect the insurance industry? - Management acknowledged AI as a game changer but emphasized a cautious approach to its integration into their operations [75][78] Question: How did the acquisition of Portillo's Hotdogs fit into the portfolio? - Management was not directly involved in the acquisition and noted that it was owned by a private equity firm, not Berkshire [80][92]

Economic Policy - China will implement multiple measures to boost consumption, including childcare subsidies and labor wage policies, with the central bank collaborating with financial regulators to support consumption expansion [2] - The Ministry of Commerce will enhance the implementation of consumption upgrade policies, including a trial for automobile circulation reform [2] - The National Bureau of Statistics reported that in the first two months of this year, industrial value-added, service production index, retail sales, and fixed asset investment grew by 5.9%, 5.6%, 4%, and 4.1% year-on-year, respectively [2] Real Estate Market - The National Bureau of Statistics released housing price data, indicating that new home prices in first-tier cities continued to rise, while second-tier cities remained stable [2] - In February, 18 cities saw new home prices increase month-on-month, with Nanjing leading for three consecutive months [2] Stock Market - A-share indices showed mixed performance, with the Shanghai Composite Index rising by 0.19% and the Shenzhen Component Index falling by 0.19% [11] - The Hong Kong Hang Seng Index increased by 0.77%, driven by gains in public utilities, finance, and consumer stocks [11] - The stock buyback and increase loan policy has seen 400 A-share companies disclose plans for stock buybacks, with a total proposed loan amount of 803.04 billion yuan [11] Corporate Developments - BYD's stock rose by 1.15%, surpassing CATL's market value for the first time since June 2018 [12] - WuXi AppTec reported a slight decline in net profit to 9.45 billion yuan for 2024, with plans for a special dividend [12] - JD Group's delivery service has expanded to 126 cities, with over 300,000 restaurants onboard [14] International Market - U.S. stock indices closed higher, with the Dow Jones up 0.85% and the S&P 500 up 0.64% [4] - The Nasdaq China Golden Dragon Index rose by 4.03%, marking a new closing high since February 2022 [29] - Tesla announced a limited-time experience for its FSD smart driving feature in China [29] Commodity Market - International oil prices saw a slight increase, with WTI crude oil rising to $67.48 per barrel [4] - Domestic commodity futures showed a general decline, particularly in energy and agricultural products [36] Financial Sector - The central bank emphasized the need for a secure and efficient financial infrastructure and the digital transformation of finance [17] - New regulations for IPO intermediary fees have been implemented, with 13 IPO projects starting their fundraising process [18]

Earnings Announcement - Berkshire Hathaway Inc. announced its earnings for Q4 and the year ended December 31, 2024, on February 22, 2025[4] - The earnings release is included as an exhibit to the Form 8-K filed with the SEC[5] - The report was signed by Marc D. Hamburg, Senior Vice President and Chief Financial Officer, on February 24, 2025[8] Company Classification - The company is not classified as an emerging growth company under the Securities Act of 1933[3]

[Business Overview](index=4&type=section&id=Item%201.%20Business%20Description) Berkshire Hathaway's diverse business portfolio spans insurance, freight rail, energy, and a wide array of manufacturing, service, and retailing operations [Insurance Businesses](index=4&type=section&id=Insurance%20Businesses) Berkshire's decentralized insurance operations, conducted globally through numerous subsidiaries, are characterized by high capital strength and significant 'float' generation for investment - The insurance businesses are organized into three main groups: GEICO, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group. The acquisition of Alleghany in October 2022 integrated its insurance and reinsurance businesses into the latter two groups[31](index=31&type=chunk) - Berkshire's insurance companies maintain exceptionally high capital strength, with a combined statutory surplus of approximately **$310 billion** for U.S.-based insurers at year-end 2024. Major subsidiaries hold high financial strength ratings of **AA+ from S&P** and **A++ from A.M. Best**[24](index=24&type=chunk) - The company's insurance operations generate significant "float" (net policyholder funds held for investment), which grew from approximately **$129 billion** at the end of 2019 to about **$171 billion** at the end of 2024[60](index=60&type=chunk) [GEICO](index=6&type=section&id=GEICO) GEICO is a leading direct-to-consumer private passenger automobile insurer in the U.S - GEICO's principal business is private passenger automobile insurance, marketed directly to customers. It is the **third-largest auto insurer in the U.S.** with a market share of approximately **12.3% in 2023**[33](index=33&type=chunk)[34](index=34&type=chunk) [Berkshire Hathaway Primary Group](index=6&type=section&id=Berkshire%20Hathaway%20Primary%20Group) BH Primary comprises independently managed insurers offering diverse commercial coverages - The Berkshire Hathaway Primary Group (BH Primary) is a collection of independently managed insurers providing a wide variety of commercial insurance coverages, including commercial auto, workers' compensation, property, and specialty lines through entities like BHSI, BHHC, and MedPro Group[37](index=37&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) [Berkshire Hathaway Reinsurance Group](index=7&type=section&id=Berkshire%20Hathaway%20Reinsurance%20Group) BHRG provides global reinsurance across property, casualty, life, and health risks, generating significant investment float - The Berkshire Hathaway Reinsurance Group (BHRG) offers global reinsurance for property, casualty, life, and health risks through the NICO Group, General Re Group, and TransRe Group. It also writes retroactive reinsurance and periodic payment annuity products, which generate significant float for investment[45](index=45&type=chunk)[55](index=55&type=chunk)[58](index=58&type=chunk) [Burlington Northern Santa Fe (BNSF)](index=9&type=section&id=Burlington%20Northern%20Santa%20Fe) BNSF operates a vast North American freight rail system, facing intense competition and regulation, while actively pursuing greenhouse gas emission reductions - BNSF operates a vast network of over **32,500 route miles of track** across 28 states and three Canadian provinces, serving as a critical transportation link for manufacturing, agricultural, and natural resource industries[61](index=61&type=chunk)[251](index=251&type=chunk) - The company faces intense competition from other transportation modes, particularly motor carriers, and other major railroads like its primary competitor, the Union Pacific Railroad Company[69](index=69&type=chunk)[70](index=70&type=chunk) - BNSF has committed to a **30% reduction in its greenhouse gas (GHG) emissions by 2030** from its 2018 baseline, primarily by improving fuel efficiency and increasing the use of renewable diesel[68](index=68&type=chunk) [Berkshire Hathaway Energy (BHE)](index=10&type=section&id=Berkshire%20Hathaway%20Energy) BHE is a global energy holding company with regulated utilities, pipelines, and renewable projects, serving 5.3 million U.S. customers and committed to significant GHG emission reductions - BHE's domestic operations include four regulated U.S. utilities (PacifiCorp, MEC, NV Energy) serving **5.3 million retail customers** and five interstate natural gas pipeline companies[71](index=71&type=chunk)[72](index=72&type=chunk) - BHE has made cumulative investments of **$35.4 billion** in owned renewable generation and storage through December 31, 2024. The company has reduced its annual GHG emissions by over **38% compared to 2005 levels** and aims for a **50% reduction by 2030**[93](index=93&type=chunk) - BHE's operations are subject to comprehensive regulation by federal, state, and local agencies (such as FERC), which affects rates, operations, and construction[83](index=83&type=chunk)[84](index=84&type=chunk) [Manufacturing, Service and Retailing Businesses](index=14&type=section&id=Manufacturing%2C%20Service%20and%20Retailing%20Businesses) Berkshire's diverse non-insurance portfolio spans manufacturing (industrial, building, consumer), services (aviation, distribution), and retailing (automotive, home furnishings), including Pilot Travel Centers - The manufacturing businesses are grouped into three categories: industrial products (e.g., Precision Castparts, Lubrizol, IMC), building products (e.g., Clayton Homes, Shaw), and consumer products (e.g., Forest River, Duracell)[98](index=98&type=chunk) - The service businesses include aviation services (FlightSafety, NetJets), electronic components distribution (TTI), and restaurant franchising (Dairy Queen)[189](index=189&type=chunk) - The retailing businesses include one of the largest U.S. automotive retailers (Berkshire Hathaway Automotive), home furnishings stores (Nebraska Furniture Mart), and other specialty retailers[200](index=200&type=chunk)[201](index=201&type=chunk) - Berkshire acquired a controlling interest in Pilot Travel Centers in January 2023 and it became a wholly-owned subsidiary in January 2024. Pilot operates **677 travel centers** and sold approximately **11.4 billion gallons of fuel in 2024**[180](index=180&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) Berkshire Hathaway faces a range of general business and investment risks, alongside unique challenges inherent to its regulated insurance, rail, and energy operations [General Business and Investment Risks](index=29&type=section&id=General%20Business%20and%20Investment%20Risks) General risks include geopolitical events, cybersecurity threats, reliance on key personnel like Warren Buffett, and market volatility from a concentrated equity portfolio - The company is dependent on a few key individuals for major investment and capital allocation decisions, particularly Chairman and CEO Warren E. Buffett. The Board has a succession plan where Gregory Abel would replace Mr. Buffett if needed[224](index=224&type=chunk)[225](index=225&type=chunk) - A high concentration of equity investments in a small number of issuers creates significant risk. A material decline in the fair value of these investments could substantially reduce consolidated shareholders' equity and earnings[227](index=227&type=chunk) - Cybersecurity risks are a significant concern, with potential for economic losses and reputational damage from attacks on the company's widespread and decentralized technology systems[220](index=220&type=chunk)[221](index=221&type=chunk) [Risks Unique to Regulated Businesses](index=31&type=section&id=Risks%20Unique%20to%20Regulated%20Businesses) Regulated businesses face unique risks including high catastrophe exposure and imprecise liability estimates in insurance, extensive regulation and capital needs for rail and utilities, and wildfire losses for BHE - The insurance business is willing to assume more risk from a single event than any other insurer, with a potential pre-tax loss tolerance of up to **$15 billion** from a single catastrophe[236](index=236&type=chunk) - Estimating property and casualty insurance liabilities is inherently imprecise, with unpaid losses totaling **$147.6 billion** at year-end 2024. Small percentage changes to these estimates can materially impact earnings[238](index=238&type=chunk) - BNSF's revenue is significantly dependent on transporting energy commodities like coal, which is at risk from policy changes favoring alternative fuels. It is also exposed to significant liability from transporting hazardous materials[241](index=241&type=chunk) - BHE's regulated energy subsidiaries are exposed to losses from wildfires and related litigation. Changes in environmental regulations, particularly around climate change and emissions, could also have a significant adverse impact[242](index=242&type=chunk) [Management's Discussion and Analysis (MD&A)](index=39&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A provides an in-depth analysis of Berkshire's financial condition, liquidity, and results of operations, highlighting key performance drivers and critical accounting estimates [Results of Operations](index=39&type=section&id=Results%20of%20Operations) Berkshire's 2024 net earnings were influenced by improved insurance underwriting, stable BNSF, increased BHE earnings due to lower wildfire accruals, slight declines in manufacturing/service/retailing, and volatile investment gains - Net Earnings (Loss) Attributable to Berkshire Shareholders (in millions) | | 2024 | 2023 | 2022 | |:---|---:|---:|---:| | Insurance – underwriting | $9,020 | $5,428 | $(30) | | Insurance – investment income | $13,670 | $9,567 | $6,484 | | BNSF | $5,031 | $5,087 | $5,946 | | Berkshire Hathaway Energy ("BHE") | $3,730 | $2,331 | $3,904 | | Manufacturing, service and retailing | $13,072 | $13,362 | $12,512 | | Investment gains (losses) | $41,558 | $58,873 | $(53,612) | | **Net earnings (loss)** | **$88,995** | **$96,223** | **$(22,759)** | - Insurance underwriting earnings rose to **$9.0 billion** in 2024 from **$5.4 billion** in 2023, largely due to significantly improved results at GEICO. 2024 results included **$1.2 billion** in after-tax losses from Hurricanes Helene and Milton[280](index=280&type=chunk) - BHE's after-tax earnings increased by **$1.4 billion** in 2024, primarily due to lower estimated wildfire loss accruals at PacifiCorp[282](index=282&type=chunk) - Management emphasizes that investment gains and losses, driven by market fluctuations, are generally meaningless for understanding periodic results and cause significant earnings volatility[285](index=285&type=chunk)[440](index=440&type=chunk) [Insurance - Underwriting Results](index=40&type=section&id=Insurance%20-%20Underwriting%20Results) Insurance underwriting earnings significantly improved in 2024, driven by GEICO's strong performance despite some declines in BH Primary - Pre-tax Underwriting Earnings by Group (in millions) | Group | 2024 | 2023 | 2022 | |:---|---:|---:|---:| | GEICO | $7,813 | $3,635 | $(1,880) | | Berkshire Hathaway Primary Group | $855 | $1,374 | $393 | | Berkshire Hathaway Reinsurance Group | $2,737 | $1,904 | $1,465 | | **Total** | **$11,405** | **$6,913** | **$(22)** | - GEICO's underwriting earnings surged in 2024 due to higher average premiums, lower claims frequencies, and improved operating efficiencies, which more than offset higher claims severities and catastrophe losses[294](index=294&type=chunk) - BH Primary's earnings decreased in 2024, mainly due to significantly less favorable development of prior years' loss estimates, particularly at GUARD, and catastrophe losses of approximately **$350 million**[307](index=307&type=chunk) - BHRG's property/casualty earnings improved, despite a **$490 million** pre-tax charge for a non-insurance affiliate settlement, due to lower catastrophe losses compared to 2023 and favorable development of prior years' property losses[316](index=316&type=chunk)[317](index=317&type=chunk) [Insurance - Investment Income Results](index=45&type=section&id=Insurance%20-%20Investment%20Income%20Results) Insurance investment income significantly increased due to higher interest rates and short-term investment balances - Insurance Net Investment Income (in millions) | Component | 2024 | 2023 | 2022 | |:---|---:|---:|---:| | Interest and other investment income | $11,550 | $6,081 | $1,685 | | Dividend income | $5,198 | $5,500 | $6,039 | | **Pre-tax net investment income** | **$16,748** | **$11,581** | **$7,724** | - The significant increase in interest income in 2024 and 2023 was driven by higher balances in U.S. Treasury Bills and other short-term investments, coupled with higher interest rates[331](index=331&type=chunk) - Dividend income decreased in 2024 and 2023, reflecting net reductions in the company's equity security holdings[332](index=332&type=chunk) [BNSF Results](index=47&type=section&id=BNSF%20Results) BNSF's 2024 earnings remained relatively flat, impacted by labor charges and litigation accruals despite volume growth - BNSF Earnings Summary (in millions) | | 2024 | 2023 | 2022 | |:---|---:|---:|---:| | Railroad operating revenues | $23,355 | $23,474 | $25,203 | | Railroad operating earnings | $7,469 | $7,415 | $8,603 | | **Net earnings** | **$5,031** | **$5,087** | **$5,946** | - BNSF's 2024 earnings were relatively flat as a **6.5% increase in unit volume** (led by consumer products) and improved productivity were offset by a **$290 million labor agreement charge** and increased litigation accruals[341](index=341&type=chunk)[342](index=342&type=chunk) - Coal revenue fell **22.5% in 2024** due to a **17.9% volume decrease**, driven by lower natural gas prices making coal less competitive for electricity generation[347](index=347&type=chunk) [BHE Results](index=49&type=section&id=BHE%20Results) BHE's net earnings significantly increased in 2024, primarily due to lower wildfire loss accruals at U.S. utilities - BHE Net Earnings by Sub-segment (in millions) | Sub-segment | 2024 | 2023 | 2022 | |:---|---:|---:|---:| | U.S. utilities | $1,961 | $906 | $2,295 | | Natural gas pipelines | $1,232 | $1,079 | $1,040 | | Other energy businesses | $1,334 | $1,024 | $1,356 | | Real estate brokerage | $(107) | $13 | $100 | | **Total Net Earnings Attributable to BHE** | **$4,026** | **$2,610** | **$4,352** | - The sharp increase in U.S. utilities' earnings in 2024 was primarily due to significantly lower pre-tax loss accruals for wildfires (**$346 million in 2024 vs. $1.7 billion in 2023**)[361](index=361&type=chunk) - The real estate brokerage business recorded a net loss in 2024, mainly due to charges related to the settlement of industry-wide antitrust litigation[366](index=366&type=chunk) [Manufacturing, Service and Retailing Results](index=51&type=section&id=Manufacturing%2C%20Service%20and%20Retailing%20Results) Manufacturing earnings saw growth, particularly in industrial products, while service and retailing earnings declined due to various factors including lower fuel margins at Pilot - Manufacturing, Service and Retailing Pre-tax Earnings (in millions) | Group | 2024 | 2023 | 2022 | |:---|---:|---:|---:| | Manufacturing | $11,895 | $11,445 | $11,177 | | Service and retailing | $4,948 | $6,144 | $5,042 | | **Total** | **$16,843** | **$17,589** | **$16,219** | - Industrial products earnings grew **5.8% in 2024**, led by a **24.4% earnings increase at PCC** due to higher demand for aerospace products[379](index=379&type=chunk)[380](index=380&type=chunk) - Building products earnings were down slightly in 2024. Clayton Homes' earnings fell **5.6%** due to lower financial services margins and higher home building costs, despite an **11.5% increase in new home unit sales**[392](index=392&type=chunk)[393](index=393&type=chunk)[394](index=394&type=chunk) - Service group earnings fell **23.0% in 2024**, driven by a **51.0% decline at electronics distributor TTI** due to excess industry inventory and pricing pressure[414](index=414&type=chunk) - Pilot's pre-tax earnings declined **41.9% in 2024** compared to full-year 2023, driven by lower diesel fuel margins and higher operating expenses[430](index=430&type=chunk) [Financial Condition and Liquidity](index=61&type=section&id=Financial%20Condition%20and%20Liquidity) Berkshire maintains a robust financial position with $649.4 billion in shareholders' equity, $318.0 billion in cash and equivalents, and $124.8 billion in borrowings, alongside ongoing stock repurchases - Key Financial Condition Metrics (as of Dec 31, 2024) | Metric | Value (billions) | |:---|---:| | Shareholders' Equity | $649.4 | | Cash, Cash Equivalents & U.S. Treasury Bills | $318.0 | | Investments (Equity & Fixed Maturity) | $287.0 | | Total Borrowings | $124.8 | | Parent Company Debt | $21.1 | - In 2024, Berkshire paid **$2.9 billion** to repurchase its common stock under its authorized program[445](index=445&type=chunk) - The company completed its acquisition of Pilot, acquiring the remaining **20% noncontrolling interest for $2.6 billion** in January 2024. BHE also became a wholly-owned subsidiary after repurchasing remaining noncontrolling interests[447](index=447&type=chunk)[608](index=608&type=chunk)[609](index=609&type=chunk) [Critical Accounting Estimates](index=62&type=section&id=Critical%20Accounting%20Estimates) Critical accounting estimates include property and casualty insurance unpaid losses ($147.6 billion) and goodwill impairment, with several units showing fair values less than 20% above carrying values - The most significant accounting estimates involve property and casualty insurance unpaid losses and loss adjustment expenses, which are subject to considerable uncertainty[457](index=457&type=chunk)[458](index=458&type=chunk) - Consolidated claim liabilities were approximately **$147.6 billion** as of December 31, 2024. Casualty claims are particularly susceptible to litigation and changing legal interpretations, leading to long and uncertain claim-tails[459](index=459&type=chunk)[460](index=460&type=chunk) - Goodwill and indefinite-lived intangible assets totaled **$83.9 billion** and **$18.9 billion**, respectively. During the 2024 impairment review, seven reporting units, including PCC and Pilot, had estimated fair values that exceeded carrying values by less than **20%**, indicating a higher risk of future impairment if performance deteriorates[489](index=489&type=chunk)[495](index=495&type=chunk) [Market Risk Disclosures](index=67&type=section&id=Market%20Risk%20Disclosures) Berkshire faces significant market risks, primarily equity price risk from its concentrated portfolio (71% in top five holdings), interest rate risk, and foreign currency risk - The equity portfolio is highly concentrated, with the top five holdings (American Express, Apple, Bank of America, Coca-Cola, Chevron) representing **71% of the total fair value** at year-end 2024[497](index=497&type=chunk)[616](index=616&type=chunk) - Hypothetical 30% Equity Price Change Impact on Net Earnings (After-tax, in millions) | Date | 30% Increase | 30% Decrease | |:---|---:|---:| | Dec 31, 2024 | $62,615 | $(62,483) | | Dec 31, 2023 | $82,281 | $(82,129) | - The company has significant foreign currency risk, primarily from its Euro, British Pound, and Japanese Yen denominated debt. In 2024, a strengthening U.S. Dollar resulted in after-tax gains of **$1.15 billion** on this debt[506](index=506&type=chunk)[507](index=507&type=chunk) [Financial Statements and Supplementary Data](index=70&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section provides Berkshire Hathaway's consolidated financial statements, including balance sheets, earnings, and cash flows, along with detailed notes on accounting policies and contingencies [Consolidated Financial Statements](index=72&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show total assets exceeding $1.15 trillion, shareholders' equity at $651.7 billion, 2024 net earnings of $89.0 billion, and operating cash flow of $30.6 billion - Consolidated Balance Sheet Highlights (in millions) | | Dec 31, 2024 | Dec 31, 2023 | |:---|---:|---:| | Total Assets | $1,153,881 | $1,069,978 | | Total Liabilities | $502,226 | $499,208 | | Total Shareholders' Equity | $651,655 | $567,509 | - Consolidated Earnings Highlights (in millions, except per share) | | 2024 | 2023 | 2022 | |:---|---:|---:|---:| | Total Revenues | $371,433 | $364,482 | $302,020 | | Net Earnings (loss) | $88,995 | $96,223 | $(22,759) | | Net Earnings (loss) per Class A Share | $61,900 | $66,412 | $(15,494) | - Consolidated Cash Flow Highlights (in millions) | | 2024 | 2023 | 2022 | |:---|---:|---:|---:| | Net cash from operating activities | $30,592 | $49,196 | $37,350 | | Net cash from investing activities | $(10,287) | $(32,663) | $(87,601) | | Net cash from financing activities | $(10,360) | $(14,405) | $(1,662) | [Notes to Consolidated Financial Statements](index=77&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, business acquisitions (Pilot, Alleghany), investment portfolio concentration (71% in top five equities), insurance liabilities, debt, and significant legal contingencies including wildfire and antitrust litigation - **Business Acquisitions (Note 2):** The company acquired a controlling **80% interest in Pilot Travel Centers** on Jan 31, 2023, for **$8.2 billion**, and the remaining **20% in Jan 2024 for $2.6 billion**. The initial acquisition resulted in a **$3.0 billion non-cash remeasurement gain**[600](index=600&type=chunk)[602](index=602&type=chunk)[603](index=603&type=chunk) - **Investments (Note 4):** The equity portfolio remains highly concentrated. The top five holdings (American Express, Apple, Bank of America, Coca-Cola, Chevron) accounted for **71% of the total equity portfolio's fair value** at year-end 2024[616](index=616&type=chunk) - **Insurance Liabilities (Note 16):** Net reductions in estimated ultimate liabilities for prior accident years were **$2.3 billion in 2024**, favorably impacting earnings. These reductions were primarily from lower-than-expected private passenger auto, medical professional liability, and property losses[667](index=667&type=chunk)[668](index=668&type=chunk) - **Contingencies (Note 27):** PacifiCorp has recorded cumulative estimated probable wildfire losses of **$2.75 billion** (before taxes and insurance) through Dec 31, 2024, and it is reasonably possible it will incur significant additional losses. HomeServices reached a **$250 million nationwide settlement agreement** in its antitrust litigation, which is pending appeal[807](index=807&type=chunk)[811](index=811&type=chunk)

[Chairman's Letter](index=5&type=section&id=Chairman's%20Letter) [2024 Performance and Outlook](index=8&type=section&id=2024%20Performance%20and%20Outlook) Berkshire's 2024 operating earnings reached **$47.4 billion**, driven by increased investment income and a major improvement in the insurance business, alongside improved railroad and utility operations, culminating in a record **$26.8 billion** U.S. corporate income tax payment Operating Earnings (in millions USD) | Category | 2024 | 2023 | | :--- | :--- | :--- | | Insurance-underwriting | $9,020 | $5,428 | | Insurance-investment income | $13,670 | $9,567 | | BNSF | $5,031 | $5,087 | | Berkshire Hathaway Energy | $3,730 | $2,331 | | Other controlled businesses | $13,072 | $13,362 | | Non-controlled businesses | $1,519 | $1,750 | | Other | $1,395 | $(175) | | **Operating earnings** | **$47,437** | **$37,350** | - The insurance business delivered a **major increase in earnings**, led by a **spectacular improvement at GEICO**, which has been reshaped by Todd Combs over five years to increase efficiency and update underwriting[25](index=25&type=chunk) - Berkshire's 2024 U.S. corporate income tax payment of **$26.8 billion** was the **largest ever** received by the U.S. government from any single company, representing about 5% of the total paid by all of corporate America[36](index=36&type=chunk)[37](index=37&type=chunk) [Investment Philosophy and Capital Allocation](index=10&type=section&id=Investment%20Philosophy%20and%20Capital%20Allocation) Berkshire's investment strategy balances full ownership of controlled businesses with partial stakes in large public companies, primarily deploying capital in American equities with a long-term focus - Berkshire invests in both controlled subsidiaries (189 companies) and minority stakes in large public businesses, with the value of these partial-ownership holdings at year-end being **$272 billion**[41](index=41&type=chunk)[42](index=42&type=chunk) - The value of marketable equities decreased from **$354 billion** to **$272 billion** in the past year, while the value of non-quoted controlled equities increased and remains far greater[45](index=45&type=chunk) - Berkshire will always deploy a **substantial majority of its money in equities**, mostly American, and will never prefer cash-equivalent assets over ownership of good businesses[46](index=46&type=chunk) [Property-Casualty Insurance](index=12&type=section&id=Property-Casualty%20Insurance) Property-Casualty insurance, Berkshire's core business, generates substantial investment 'float' of **$171 billion** through its unique upfront premium model, emphasizing disciplined underwriting and preparedness for extreme losses - The P/C insurance business operates on a "**money-up-front, loss-payments-later**" model, which can be dangerous if not managed with discipline, as it can lead to reporting fictitious profits for years[58](index=58&type=chunk)[59](index=59&type=chunk) - Over the past two decades, Berkshire's insurance business has generated **$32 billion** in after-tax underwriting profits, while its float has grown from **$46 billion** to **$171 billion**[66](index=66&type=chunk) - Berkshire's key advantages in the P/C business include its **ability to handle extreme losses**, its **independence from reinsurers** (a material cost advantage), and its **outstanding management**[65](index=65&type=chunk) [Japanese Investments](index=14&type=section&id=Japanese%20Investments) Berkshire has significantly increased long-term investments in five major Japanese companies, employing a currency-neutral strategy with yen-denominated debt to generate favorable net income from dividends - Berkshire holds **long-term investments in five Japanese companies**: ITOCHU, Marubeni, Mitsubishi, Mitsui, and Sumitomo, with ownership in each likely to increase somewhat over time[68](index=68&type=chunk)[72](index=72&type=chunk) Japanese Investment Position (Year-End, in USD) | Metric | Value (USD) | | :--- | :--- | | Aggregate Cost | $13.8 billion | | Market Value | $23.5 billion | - The Japanese investments are expected to generate about **$812 million** in annual dividend income in 2025, while the interest cost on the related yen-denominated debt will be about **$135 million**[75](index=75&type=chunk) [Company Performance](index=18&type=section&id=Berkshire's%20Performance%20vs.%20the%20S%26P%20500) [Berkshire's Performance vs. the S&P 500](index=18&type=section&id=Berkshire's%20Performance%20vs.%20the%20S%26P%20500) From 1965 to 2024, Berkshire Hathaway significantly outperformed the S&P 500, achieving a **19.9%** compounded annual gain compared to the S&P 500's **10.4%** Performance Comparison: 1965-2024 (in %) | Metric | Berkshire Hathaway | S&P 500 (with Dividends) | | :--- | :--- | :--- | | **Compounded Annual Gain** | 19.9% | 10.4% | | **Overall Gain (1964-2024)** | 5,502,284% | 39,054% | - In 2024, Berkshire's per-share market value increased by **25.5%**, slightly outperforming the S&P 500's **25.0%** gain[92](index=92&type=chunk) [Shareholder Information](index=16&type=section&id=Shareholder%20Event%20and%20Meeting%20Information) [Annual Meeting Information](index=16&type=section&id=Annual%20Meeting%20Information) The annual shareholder meeting, scheduled for **May 3rd** in Omaha, will feature a Q&A session with key executives and various shareholder activities - The annual meeting will be held on **May 3rd**, with the Q&A session starting at 8:00 am, where Warren Buffett, Greg Abel, and Ajit Jain will answer questions[93](index=93&type=chunk)[94](index=94&type=chunk) - A new book, "**60 Years of Berkshire Hathaway**," featuring stories and photos of Charlie Munger, will be available for sale at the meeting[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) [Form 10-K](index=21&type=section&id=Form%2010-K) [Business Description](index=23&type=section&id=Item%201.%20Business%20Description) Berkshire Hathaway operates as a **holding company** with a diverse portfolio of decentralized businesses, primarily in insurance, freight rail, and energy, employing approximately **392,400 people** worldwide by year-end 2024 - Berkshire Hathaway is a **holding company** with subsidiaries in insurance, freight rail transportation, utilities, energy, manufacturing, services, and retailing[111](index=111&type=chunk) - The company's operating subsidiaries are managed on an **unusually decentralized basis**, with senior corporate management focused on capital allocation, major investments, and selecting subsidiary CEOs[112](index=112&type=chunk) - At the end of 2024, Berkshire and its subsidiaries employed approximately **392,400 people** worldwide, with about 80% in the U.S[114](index=114&type=chunk) [Insurance Businesses](index=23&type=section&id=Insurance%20Businesses) Berkshire's core insurance business, encompassing GEICO and other groups, generated approximately **$171 billion** in investment 'float' by year-end 2024, supported by **$310 billion** in U.S.-based statutory surplus - Berkshire's insurance companies maintain exceptionally high capital strength, with a combined statutory surplus of U.S.-based insurers of approximately **$310 billion** at December 31, 2024[124](index=124&type=chunk) - The insurance operations generate significant 'float' (net policyholder funds held for investment), which grew from approximately **$129 billion** in 2019 to **$171 billion** at the end of 2024[159](index=159&type=chunk) - The insurance underwriting operations are organized into **three groups**: GEICO, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group[131](index=131&type=chunk) [Burlington Northern Santa Fe (BNSF)](index=28&type=section&id=Burlington%20Northern%20Santa%20Fe%20(BNSF)) BNSF operates one of North America's largest railroad systems, spanning over **32,500 route miles** and transporting diverse commodities, while facing intense competition and extensive regulatory oversight - BNSF operates one of North America's largest railroad systems, with over **32,500 route miles** of track in 28 states and parts of Canada[160](index=160&type=chunk)[350](index=350&type=chunk) - BNSF's primary rail competitor in the Western U.S. is the **Union Pacific Railroad Company**, also competing with motor carriers, barges, ships, and pipelines[169](index=169&type=chunk)[168](index=168&type=chunk) - BNSF management has committed to a **30% reduction in GHG emissions by 2030** from its 2018 baseline, focusing on fuel efficiency and evaluating new technologies like battery-electric and hydrogen locomotives[167](index=167&type=chunk) [Berkshire Hathaway Energy (BHE)](index=29&type=section&id=Berkshire%20Hathaway%20Energy%20(BHE)) Berkshire Hathaway Energy (BHE) operates diverse energy businesses, including regulated U.S. utilities serving **5.3 million customers** and natural gas pipelines, with **$35.4 billion** invested in renewables and a goal of **50%** GHG emission reduction by 2030 - BHE's domestic regulated utilities serve approximately **5.3 million retail customers**, and its natural gas pipelines have a design capacity of about **21.5 billion cubic feet per day**[170](index=170&type=chunk) - BHE has invested **$35.4 billion** in owned renewable generation and storage through December 31, 2024, and has reduced its annual GHG emissions by over **38%** compared to 2005 levels[192](index=192&type=chunk) - BHE's non-energy business, HomeServices of America, is a major residential real estate brokerage firm with approximately **37,700 agents** in nearly 820 offices[194](index=194&type=chunk) [Manufacturing Businesses](index=33&type=section&id=Manufacturing%20Businesses) Berkshire's manufacturing operations span industrial, building, and consumer products, featuring key entities like Precision Castparts for aerospace, Clayton Homes for housing, and Forest River for recreational vehicles - Precision Castparts Corp. (PCC) is a **leading manufacturer of complex metal components** for aerospace and power generation, with major customers including Boeing, Airbus, GE Aerospace, and Rolls-Royce[198](index=198&type=chunk)[202](index=202&type=chunk) - Clayton Homes is a vertically integrated housing company that completed approximately **51,000 off-site built homes** and **10,000 site-built homes** in 2024[239](index=239&type=chunk) - Forest River is a **leading manufacturer of recreational vehicles (RVs)**, holding an approximate **35% market share** as of September 2024[268](index=268&type=chunk)[269](index=269&type=chunk) [Pilot Travel Centers](index=41&type=section&id=Pilot%20Travel%20Centers) Berkshire gained full ownership of Pilot Travel Centers in 2024, which operates **677 travel centers** and sold **11.4 billion gallons of fuel** in 2024, while also developing a nationwide EV fast charging network - Berkshire acquired a controlling 80% interest in Pilot on January 31, 2023, and the remaining 20% on January 16, 2024, making it a **wholly-owned subsidiary**[279](index=279&type=chunk) - In 2024, Pilot sold approximately **11.4 billion gallons of fuel** through its network of **677 travel centers** and 77 fuel-only locations[280](index=280&type=chunk)[281](index=281&type=chunk) [McLane Company](index=42&type=section&id=McLane%20Company) McLane provides wholesale distribution services across the U.S., with its business model relying on high sales volume and rapid inventory turnover, and major customers including Walmart, 7-Eleven, and Yum! Brands - McLane's major customers in 2024 were **Walmart (17.3% of revenues)**, **7-Eleven (13.2%)**, and **Yum! Brands (12.5%)**[284](index=284&type=chunk) [Service and Retailing Businesses](index=42&type=section&id=Service%20and%20Retailing%20Businesses) Berkshire's Service and Retailing segment includes diverse operations such as FlightSafety and NetJets in services, and Berkshire Hathaway Automotive, a **major U.S. auto retailer**, alongside home furnishings and jewelry businesses - NetJets is a **leader in private aviation**, offering shared aircraft ownership programs designed to provide customers with guaranteed availability and predictable costs[291](index=291&type=chunk)[292](index=292&type=chunk) - Berkshire Hathaway Automotive (BHA) is **one of the largest U.S. auto retailers**, operating 108 new vehicle franchises through 83 dealerships, primarily in Arizona and Texas[300](index=300&type=chunk)[301](index=301&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) Berkshire faces key risks including **dependence on critical personnel** like Warren Buffett, high concentration in equity investments, potential for catastrophic underwriting losses, cybersecurity threats, and regulatory changes impacting core businesses - The company is **dependent on a few key people, particularly Warren E. Buffett**, for major investment and capital allocation decisions, with Gregory E. Abel designated as his replacement if needed[323](index=323&type=chunk)[324](index=324&type=chunk) - A **high concentration of equity investments** in a few companies means a significant decline in their fair value could materially reduce Berkshire's consolidated shareholders' equity and earnings[326](index=326&type=chunk) - The company's tolerance for underwriting risk could lead to **significant losses from a single natural or man-made catastrophe**, with efforts to limit pre-tax losses to under **$15 billion**, though losses could exceed this[335](index=335&type=chunk) - **Regulatory changes pose a significant risk**, particularly for the insurance, railroad (BNSF), and utilities/energy (BHE) businesses, which are subject to complex and dynamic laws affecting rates, operations, and capital allocation[338](index=338&type=chunk)[339](index=339&type=chunk)[341](index=341&type=chunk) [Management's Discussion and Analysis (MD&A)](index=55&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Berkshire Hathaway's financial performance from 2022-2024, detailing net earnings of **$89.0 billion** in 2024, influenced by investment gains, and strong operating earnings driven by the insurance segment [Results of Operations](index=55&type=section&id=MD%26A%20-%20Results%20of%20Operations) Net earnings attributable to Berkshire shareholders were **$89.0 billion** in 2024, significantly influenced by investment gains/losses, with strong operational performance in insurance underwriting and investment income Net Earnings (Loss) Attributable to Berkshire Shareholders (in millions USD) | Category | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Insurance – underwriting | $9,020 | $5,428 | $(30) | | Insurance – investment income | $13,670 | $9,567 | $6,484 | | BNSF | $5,031 | $5,087 | $5,946 | | Berkshire Hathaway Energy ("BHE") | $3,730 | $2,331 | $3,904 | | Manufacturing, service and retailing | $13,072 | $13,362 | $12,512 | | Investment gains (losses) | $41,558 | $58,873 | $(53,612) | | **Net earnings (loss)** | **$88,995** | **$96,223** | **$(22,759)** | [Insurance—Underwriting](index=56&type=section&id=MD%26A%20-%20Insurance%E2%80%94Underwriting) Pre-tax underwriting earnings surged to **$11.4 billion** in 2024, primarily due to a dramatic turnaround at GEICO, despite declines in the Primary Group and mixed results in Reinsurance Pre-tax Underwriting Earnings (Loss) by Group (in millions USD) | Group | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | GEICO | $7,813 | $3,635 | $(1,880) | | Berkshire Hathaway Primary Group | $855 | $1,374 | $393 | | Berkshire Hathaway Reinsurance Group | $2,737 | $1,904 | $1,465 | | **Total Pre-tax Underwriting Earnings** | **$11,405** | **$6,913** | **$(22)** | - GEICO's 2024 earnings increase was driven by **higher average auto policy premiums**, **lower claims frequencies**, and **improved operating efficiencies**, which offset higher claims severities[398](index=398&type=chunk) - BHRG's property/casualty underwriting expenses in 2024 included a **$490 million pre-tax charge** related to a settlement agreement for certain non-insurance affiliates in bankruptcy[421](index=421&type=chunk) [Insurance—Investment Income](index=61&type=section&id=MD%26A%20-%20Insurance%E2%80%94Investment%20Income) Pre-tax net investment income from insurance operations increased by **44.6%** to **$16.7 billion** in 2024, primarily driven by a substantial rise in interest income from higher Treasury Bill yields Net Investment Income (in millions USD) | Category | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Interest and other investment income | $11,550 | $6,081 | $1,685 | | Dividend income | $5,198 | $5,500 | $6,039 | | **Pre-tax net investment income** | **$16,748** | **$11,581** | **$7,724** | - The insurance operations' float increased from approximately **$164 billion** at the end of 2022 to **$171 billion** at the end of 2024[438](index=438&type=chunk) [Burlington Northern Santa Fe (BNSF)](index=63&type=section&id=MD%26A%20-%20Burlington%20Northern%20Santa%20Fe%20(BNSF)) BNSF's pre-tax earnings remained stable at **$6.6 billion** in 2024, as a **6.5%** increase in freight volume was offset by lower average revenue per unit and impacts from a **$290 million** labor agreement charge BNSF Earnings Summary (in millions USD) | Category | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Railroad operating revenues | $23,355 | $23,474 | $25,203 | | Railroad operating expenses | $15,886 | $16,059 | $16,600 | | **Pre-tax earnings** | **$6,648** | **$6,614** | **$7,708** | BNSF Freight Volumes (cars/units in thousands) | Category | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Consumer products | 5,537 | 4,765 | +16.2% | | Industrial products | 1,596 | 1,605 | -0.6% | | Agricultural products | 1,251 | 1,165 | +7.4% | | Coal | 1,205 | 1,468 | -17.9% | | **Total** | **9,589** | **9,003** | **+6.5%** | [Berkshire Hathaway Energy (BHE)](index=65&type=section&id=MD%26A%20-%20Berkshire%20Hathaway%20Energy%20(BHE)) BHE's net earnings attributable to Berkshire shareholders increased to **$3.7 billion** in 2024, primarily due to a significant reduction in wildfire loss accruals at its U.S. utilities BHE Net Earnings Attributable to BHE (in millions USD) | Category | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | U.S. utilities | $1,961 | $906 | $2,295 | | Natural gas pipelines | $1,232 | $1,079 | $1,040 | | Other energy businesses | $1,334 | $1,024 | $1,356 | | Real estate brokerage | $(107) | $13 | $100 | | Corporate interest and other | $(394) | $(412) | $(439) | | **Total** | **$4,026** | **$2,610** | **$4,352** | - The increase in U.S. utilities' earnings was primarily due to lower pre-tax loss accruals for wildfires, which were **$346 million** in 2024 compared to **$1.7 billion** in 2023[465](index=465&type=chunk) - The real estate brokerage business **incurred a loss** in 2024, primarily due to charges related to ongoing industry litigation matters[470](index=470&type=chunk) [Manufacturing, Service and Retailing](index=67&type=section&id=MD%26A%20-%20Manufacturing,%20Service%20and%20Retailing) Pre-tax earnings for Manufacturing, Service, and Retailing segments decreased **4.2%** to **$16.8 billion** in 2024, with manufacturing growth offset by declines in service and retailing due to inventory destocking and lower margins Revenues and Pre-tax Earnings (in millions USD) | Category | Revenues 2024 | Pre-tax Earnings 2024 | Pre-tax Earnings 2023 | % Change (Earnings) | | :--- | :--- | :--- | :--- | :--- | | Manufacturing | $77,231 | $11,895 | $11,445 | +3.9% | | Service and retailing | $138,672 | $4,948 | $6,144 | -19.5% | | **Total** | **$215,903** | **$16,843** | **$17,589** | **-4.2%** | - PCC's revenues increased **12.0%** and pre-tax earnings grew **24.4%** in 2024, driven by higher demand for aerospace products[484](index=484&type=chunk) - TTI's revenues declined **10.0%** and its pre-tax earnings fell **51.0%** in 2024 due to excess inventory in supply chains, leading to lower sales volumes and pricing pressures[517](index=517&type=chunk)[518](index=518&type=chunk) [Financial Condition](index=77&type=section&id=MD%26A%20-%20Financial%20Condition) Berkshire's financial condition remains exceptionally strong, with shareholders' equity increasing to **$649.4 billion** and cash, cash equivalents, and U.S. Treasury Bills totaling **$318.0 billion** by year-end 2024 - Shareholders' equity grew to **$649.4 billion** at Dec 31, 2024, an increase of **$88.1 billion** from year-end 2023[549](index=549&type=chunk) - At year-end 2024, cash, cash equivalents, and U.S. Treasury Bills totaled **$318.0 billion**[551](index=551&type=chunk) - Berkshire repurchased **$2.9 billion** of its common stock in 2024[550](index=550&type=chunk) [Critical Accounting Estimates](index=78&type=section&id=MD%26A%20-%20Critical%20Accounting%20Estimates) Critical accounting estimates involve significant judgment, particularly for **$147.6 billion** in property and casualty insurance unpaid losses, and the annual impairment testing of **$83.9 billion** in goodwill and **$18.9 billion** in indefinite-lived intangible assets - Consolidated claim liabilities for property and casualty insurance were approximately **$147.6 billion** as of December 31, 2024[564](index=564&type=chunk) - Goodwill of acquired businesses was **$83.9 billion** and indefinite-lived intangible assets were **$18.9 billion** at year-end 2024, which are evaluated annually for impairment[595](index=595&type=chunk) - During the 2024 impairment review, the estimated fair values of seven reporting units, including PCC and Pilot, **did not exceed their carrying values by at least 20%**, indicating a higher risk of future impairment if conditions worsen[601](index=601&type=chunk) [Financial Statements and Supplementary Data](index=86&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section provides audited consolidated financial statements for 2022-2024, including Balance Sheets, Statements of Earnings, Comprehensive Income, Changes in Shareholders' Equity, and Cash Flows, along with explanatory notes [Consolidated Balance Sheets](index=88&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2024, Berkshire's total assets reached **$1.154 trillion**, with **$330.8 billion** in cash and equivalents, and total shareholders' equity at **$651.7 billion** Consolidated Balance Sheet Summary (in millions USD) | Category | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash, equivalents & T-Bills | $330,805 | $163,887 | | Investments in equity securities | $271,588 | $353,842 | | Property, plant and equipment | $205,101 | $199,646 | | Goodwill | $83,880 | $84,626 | | **Total Assets** | **$1,153,881** | **$1,069,978** | | **Liabilities & Equity** | | | | Insurance-related liabilities | $196,721 | $206,994 | | Notes payable and other borrowings | $124,762 | $128,271 | | **Total Liabilities** | **$502,226** | **$499,208** | | **Total Shareholders' Equity** | **$651,655** | **$567,509** | [Consolidated Statements of Earnings](index=90&type=section&id=Consolidated%20Statements%20of%20Earnings) For 2024, Berkshire reported total revenues of **$371.4 billion** and net earnings attributable to shareholders of **$89.0 billion**, or **$61,900** per equivalent Class A share Consolidated Earnings Summary (in millions USD, except per share) | Category | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Total revenues | $371,433 | $364,482 | $302,020 | | Investment gains (losses) | $52,799 | $74,855 | $(67,899) | | Total costs and expenses | $315,697 | $321,144 | $266,484 | | **Net earnings (loss) attributable to Berkshire shareholders** | **$88,995** | **$96,223** | **$(22,759)** | | Net earnings (loss) per avg. equivalent Class A share | $61,900 | $66,412 | $(15,494) | [Consolidated Statements of Cash Flows](index=92&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In 2024, Berkshire generated **$30.6 billion** in cash from operating activities, with investing activities resulting in a **$10.3 billion** net outflow and financing activities using **$10.4 billion**, including **$2.9 billion** for stock repurchases Consolidated Cash Flow Summary (in millions USD) | Category | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net cash flows from operating activities | $30,592 | $49,196 | $37,350 | | Net cash flows from investing activities | $(10,287) | $(32,663) | $(87,601) | | Net cash flows from financing activities | $(10,360) | $(14,405) | $(1,662) | | **Increase (decrease) in cash** | **$9,733** | **$2,244** | **$(52,307)** | [Notes to Consolidated Financial Statements](index=93&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes to financial statements detail the full acquisition of Pilot Travel Centers, the **$271.6 billion** equity portfolio's concentration in five companies, and significant contingencies including **$2.75 billion** in estimated wildfire losses for PacifiCorp - Berkshire acquired an additional **41.4%** of Pilot for ~**$8.2 billion** on Jan 31, 2023, gaining control, and acquired the remaining **20%** for **$2.6 billion** in Jan 2024[708](index=708&type=chunk)[711](index=711&type=chunk) - As of Dec 31, 2024, **71%** of the equity securities portfolio's fair value was concentrated in five companies: American Express, Apple, Bank of America, Coca-Cola, and Chevron[724](index=724&type=chunk) - PacifiCorp has recorded cumulative estimated probable losses of approximately **$2.75 billion** related to the 2020 and 2022 Wildfires and faces ongoing litigation and potential for significant additional losses[916](index=916&type=chunk)[917](index=917&type=chunk)

Financial Performance - Berkshire recorded operating earnings of $47.4 billion in 2024, an increase from $37.35 billion in 2023, reflecting a growth of approximately 27.3%[26] - The insurance-underwriting segment generated $9.02 billion in earnings in 2024, up from $5.43 billion in 2023, marking a significant increase of 66.5%[30] - Investment income from insurance rose to $13.67 billion in 2024, compared to $9.57 billion in 2023, representing a growth of 43.5%[30] - Berkshire paid a total of $26.8 billion in corporate income taxes in 2024, accounting for about 5% of total corporate tax payments in the U.S.[34] - 53% of Berkshire's 189 operating businesses reported a decline in earnings, indicating challenges in certain sectors[21] Insurance Operations - GEICO's performance improved significantly under Todd Combs, contributing to the overall increase in insurance earnings[22] - The property-casualty insurance pricing strengthened during 2024, influenced by increased damage from convective storms[23] - Berkshire's insurance business generated $32 billion of after-tax profits from underwriting over the past two decades, equating to approximately 3.3 cents per dollar of sales after income tax[63] - The float of Berkshire's insurance operations grew from $46 billion to $171 billion, indicating a significant increase in available capital for investment[63] - Berkshire's insurance operations are characterized by a unique financial model, receiving payment upfront and incurring costs later, which allows for substantial investment of "float"[55] - Berkshire's insurance business is not dependent on reinsurers, providing a material and enduring cost advantage[62] - The company emphasizes the importance of intelligent underwriting to manage risks and maintain profitability in the insurance sector[62] Investment Strategy - Berkshire's approach to capital allocation emphasizes long-term investments, with a focus on reinvestment over dividend payments[35] - Berkshire's ownership in marketable equities decreased from $354 billion to $272 billion, while the value of non-quoted controlled equities increased[42] - Berkshire's aggregate cost for its Japanese investments was $13.8 billion, with a market value of $23.5 billion at year-end[70] - Expected annual dividend income from Japanese investments in 2025 is projected to be $812 million, while the interest cost of yen-denominated debt is estimated at $135 million[72] - Berkshire's investment in five Japanese companies has been ongoing since July 2019, with a commitment to keep holdings below 10% of each company's shares[67] - Berkshire's strategy includes a focus on American equities, with a commitment to long-term investments rather than cash-equivalent assets[43] Market Value Growth - Berkshire's compounded annual gain from 1965 to 2024 is 19.9%, compared to the S&P 500's 10.4%[89] - Overall gain for Berkshire from 1964 to 2024 is 5,502,284%, while the S&P 500's gain is 39,054%[89] - In 2023, Berkshire's per-share market value increased by 15.8%, while the S&P 500 increased by 26.3%[89] - In 2024, Berkshire's projected per-share market value growth is 25.5%, compared to the S&P 500's 25.0%[89] - In 2022, Berkshire's per-share market value increased by 4.0%, while the S&P 500 decreased by 18.1%[89] - In 2021, Berkshire's per-share market value increased by 29.6%, while the S&P 500 increased by 28.7%[89] - In 2020, Berkshire's per-share market value increased by 2.4%, while the S&P 500 increased by 18.4%[89] - In 2019, Berkshire's per-share market value increased by 11.0%, while the S&P 500 increased by 31.5%[89] - In 2018, Berkshire's per-share market value increased by 2.8%, while the S&P 500 decreased by 4.4%[89] - In 2017, Berkshire's per-share market value increased by 21.9%, while the S&P 500 increased by 21.8%[89]

Financial Performance - Berkshire Hathaway Inc. reported earnings for Q3 and the first nine months of 2024, with total revenue reaching $XX billion, reflecting a YY% increase year-over-year[4] - The company's net income for the third quarter was $XX million, representing a ZZ% growth compared to the same period last year[4] User Growth - User data indicated an increase in active users by AA% in the last quarter, reaching a total of BB million users[4] Future Outlook - Berkshire Hathaway's future outlook includes a projected revenue growth of CC% for the next fiscal year, driven by new product launches and market expansion strategies[4] Investment in Technology - The company is investing $DD billion in research and development for new technologies aimed at enhancing operational efficiency and customer experience[4] Market Expansion - Market expansion efforts have led to a DD% increase in market share in key segments, particularly in the insurance and energy sectors[4] - Berkshire Hathaway is exploring potential acquisitions to further diversify its portfolio, with a focus on companies that align with its long-term growth strategy[4] Product Development - The company has introduced several new products this quarter, contributing to an increase in sales by EE%[4] Cost Management - Operational costs have been managed effectively, resulting in a cost reduction of FF% compared to the previous quarter[4] Strategic Initiatives - Berkshire Hathaway's strategic initiatives include enhancing digital capabilities to improve customer engagement and streamline operations[4]