Core Insights - Warren Buffett's investment strategy focuses on buying good companies at attractive prices and holding them long-term to benefit from their growth [2][4][5] - The current market is perceived as overvalued, with limited opportunities for Berkshire Hathaway to make significant investments [6][8] - Buffett's approach emphasizes patience and the ability to wait for favorable market conditions to acquire stocks at reasonable valuations [12][13] Investment Strategy - Buffett's investment philosophy is influenced by Benjamin Graham's value investing principles and Philip Fisher's focus on long-term growth [4][5] - Iconic investments include Coca-Cola and American Express, which have demonstrated durable business models [2][5] - The strategy involves recognizing market emotional swings and capitalizing on them when the timing is right [9][12] Market Conditions - The Nasdaq Composite has recently entered correction territory, which Buffett likely anticipated [1] - In 2023, Buffett indicated a scarcity of attractive investment opportunities, leading to asset sales rather than purchases [6][7] - The cash balance of Berkshire Hathaway increased significantly, from approximately $168 billion at the end of 2023 to $334 billion a year later, indicating a strategy of holding cash for future investments [7] Current Actions - Buffett has sold assets in a perceived expensive market, including reducing stakes in Bank of America and Apple [7][8] - The company is currently focused on maintaining its holdings in strong companies while waiting for better buying opportunities [13][14] - Investors are advised to remain patient and not rush into the market, as opportunities will eventually arise [14]

Core Insights - In 2024, Berkshire Hathaway set a record by paying over $166 billion in taxes, the highest amount any company has ever paid to the U.S. government in a single year, despite lower tax rates in recent years [1] - The significant tax bill indicates substantial earnings, primarily from capital gains on the sale of publicly traded equities, with $143 billion worth of stock sold resulting in $101.1 billion in taxable gains [2] Investment Strategy - Buffett sold significant portions of financial stocks, including Bank of America and Citigroup, while maintaining a large position in Apple, which remains the largest holding despite a reduction of over two-thirds of its original stake [4][5] - The decision to sell financial stocks may stem from dissatisfaction with their performance, particularly Citigroup, which faced regulatory challenges and restructuring efforts [8] Tax Implications - The low tax rate of 21% on the $101 billion in gains in 2024 allowed Berkshire to retain more earnings compared to the previous rate of 35% before 2017, resulting in an additional $14 billion in retained capital [9] Portfolio Management - As of the end of 2024, Berkshire's portfolio was valued at $271.6 billion, with unrealized capital gains of $196 billion, indicating a strategy focused on selling high-value stocks while waiting for better investment opportunities [10] - The company has shifted its focus to short-term U.S. Treasury bills, increasing holdings by over $166 billion in 2024, as they provide safety and attractive yields, currently around 4.3% [13][12] Future Outlook - Buffett is likely to continue investing in Treasury bills in 2025 until more attractive opportunities in large-cap stocks arise, as the current market presents limited viable candidates for significant investments [15][14]

Core Viewpoint - Berkshire Hathaway is currently valued at $1.11 trillion, making it the seventh most valuable U.S.-based company, despite not being included in the Dow Jones Industrial Average [1][11]. Stock Split Considerations - A potential stock split of Berkshire's Class B shares could enhance its chances of being included in the Dow, as the index is price-weighted and favors companies with lower share prices [2][5]. - The last stock split occurred 15 years ago, and a new split could lower the share price to align with the median price of Dow components, which is around $225 [3][5][6]. - Current trading conditions, such as zero-commission trading and fractional shares, reduce the necessity for a stock split to attract investors [4][11]. Dow Jones Industrial Average Dynamics - The Dow is heavily weighted towards financial sector companies, which collectively account for 25.1% of the index, making it challenging for Berkshire to be included due to potential redundancies with existing components [7][9]. - If Berkshire were to split its stock, it might replace Travelers Companies, but its diverse business operations extend beyond insurance [8][9]. Investment Rationale - The fundamental strength of Berkshire's underlying businesses and its diversification across various markets are the primary reasons to consider it a buy, rather than the potential for a stock split or inclusion in the Dow [12][14]. - Berkshire holds a record high of $334.2 billion in cash and equivalents, providing significant resources for future investments [14][15].

Group 1: Berkshire Hathaway's Performance and Strategy - In 2024, Berkshire Hathaway's stock performed well, with class B shares generating a 27% return, outperforming the broader market's 23% return [1] - Despite strong stock performance, Berkshire hoarded cash, was a net seller of stocks, and sold significant portions of its holdings in Apple and Bank of America, indicating a belief that the market is overvalued [2][5] - The combined positions in Apple and Bank of America accounted for 39% of Berkshire's portfolio at the end of 2024, raising questions about the company's future plans for these investments [5] Group 2: Investment in Apple - Berkshire first invested in Apple in 2016, building its position to around 40% of its $296 billion portfolio, with significant purchases made when Apple shares were below $50, now trading at $240 [3] - The decision to sell parts of the Apple position may reflect concerns about a potential market correction or economic downturn [6] Group 3: Investment in Bank of America - Berkshire invested $5 billion in Bank of America in 2011, acquiring preferred stock with a 6% annual dividend and warrants for 700 million shares at a strike price of $7.14, with the stock currently trading at about $44 [4] - Similar to Apple, the selling of Bank of America shares may indicate a strategy to realize profits amid market uncertainties [6] Group 4: American Express Investment - Berkshire has a long-standing relationship with American Express, first investing in 1991 and holding approximately 151.6 million shares by the end of 2024, which has not been sold in nearly 27 years [7][8][12] - American Express represents about 15% of Berkshire's portfolio and is unique due to its strong brand and credit card network, which provides a competitive moat [9][10][11]

Group 1: Berkshire Hathaway Overview - Berkshire Hathaway reported a 25.5% increase in stock value for the year, continuing its long-term performance of nearly 20% compounded annually since Warren Buffett became CEO [1][2] - The company’s investment portfolio is closely monitored by investors, with quarterly disclosures required for institutional investors with over $100 million in assets [2] Group 2: American Express - American Express has established itself as a premium credit card provider, attracting high-earning customers with exclusive offerings like the Centurion Card and the Platinum Card [4][5] - The company reported a 10% revenue growth to $74 billion and a 25% increase in earnings per share (EPS) to $14.02 last year [7] - Despite a recent stock decline due to earnings guidance, it is viewed as a buying opportunity for long-term investors [7] Group 3: Moody's Corporation - Moody's is the second largest credit rating agency in the U.S. and has been part of Berkshire's portfolio since its spin-off from Dun & Bradstreet in 2000 [8] - The company benefits from high barriers to entry in the credit rating industry and has a competitive advantage due to established reputations [9] - Moody's Analytics segment provides steady income through a subscription-based model, helping to offset weaknesses in its credit ratings business [11][12] Group 4: Chubb - Chubb is a multinational insurance company that has recently been added to Berkshire's portfolio, with 27 million shares acquired in late 2023 and early 2024 [13] - The company has a strong track record of underwriting profitability and has increased its dividend payout for 31 consecutive years [15] - Chubb's investment portfolio of $150 billion allows it to benefit from higher interest rates, resulting in a 20% increase in net investment income to $5.9 billion last year [16][17]

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]