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]

Insurance Underwriting Performance - Insurance underwriting after-tax earnings decreased by $1.7 billion in Q3 2024 compared to 2023, primarily due to Hurricane Helene losses ($565 million), increased liabilities for prior claims, and foreign currency exchange losses[84] - Hurricane Milton is estimated to cause pre-tax incurred losses between $1.3 billion and $1.5 billion, which will be reflected in Q4 2024 earnings[87] - Premiums written increased by $85 million (1.7%) in Q3 2024 and $594 million (4.3%) in the first nine months of 2024 compared to 2023, driven by growth at NICO Primary, BH Direct, and BHHC[94] - Premiums earned increased by 5.3% in Q3 2024 and 9.8% in the first nine months of 2024 compared to 2023[94] - Losses and loss adjustment expenses increased by $1.3 billion (48.8%) in Q3 2024 and $1.7 billion (20.9%) in the first nine months of 2024, with the loss ratio rising by 25.4 percentage points in Q3 and 6.5 percentage points in the first nine months[94] - Underwriting expenses increased by $102 million (8.5%) in Q3 2024 and $492 million (14.7%) in the first nine months of 2024 compared to 2023[94] - Property/casualty premiums written remained relatively unchanged in Q3 and the first nine months of 2024 compared to 2023, while premiums earned decreased by 5.0% in Q3 and 1.7% in the first nine months[99] - Losses and loss adjustment expenses for property/casualty increased by $364 million (12.5%) in Q3 2024 and $301 million (3.3%) in the first nine months of 2024, with the loss ratio rising by 9.4 percentage points in Q3 and 0.9 percentage points in the first nine months[99] - Underwriting expenses for property/casualty increased by $677 million (50.8%) in Q3 2024 and $793 million (19.3%) in the first nine months of 2024, including a $490 million pre-tax charge in Q3 2024[99] - Life/health premiums earned declined by $110 million (8.3%) in Q3 2024 and $171 million (4.5%) in the first nine months of 2024 compared to 2023, primarily due to reductions in non-U.S. life business[100] - Life and health benefits decreased by $217 million (21.0%) in Q3 2024 and $240 million (8.8%) in the first nine months of 2024 compared to 2023[100] - Pre-tax underwriting earnings for life/health increased to $98 million in Q3 2024 and $279 million in the first nine months of 2024, compared to $50 million and $234 million in 2023[100] - Pre-tax underwriting earnings for Life/health increased by $48 million in Q3 2024 and $45 million in the first nine months of 2024 compared to 2023, with gains of $50 million from life contract commutations in 2024[101] - Pre-tax underwriting losses from retroactive reinsurance decreased to $498 million in the first nine months of 2024 from $622 million in 2023, primarily due to net reductions in estimated ultimate claim liabilities[101] - Unpaid losses assumed under retroactive reinsurance contracts declined by $1.6 billion to $33.1 billion at September 30, 2024, primarily due to loss payments[101] Insurance Investment Income - Insurance investment income after-tax earnings increased by $1.2 billion in Q3 2024 and $2.8 billion in the first nine months of 2024, driven by higher interest income from U.S. Treasury Bills[84] - Pre-tax net investment income increased by 56.6% in Q3 2024 and 43.5% in the first nine months of 2024 compared to 2023, driven by higher interest and other investment income[102] - Dividend income declined by 10.7% in Q3 2024 and 5.2% in the first nine months of 2024 compared to 2023, reflecting changes in equity security holdings[104] - Interest and other investment income increased by $1.8 billion in Q3 2024 and $3.8 billion in the first nine months of 2024 over 2023, driven by increased short-term investments[104] - Float approximated $174 billion at September 30, 2024, up from $169 billion at December 31, 2023[104] - Cash, cash equivalents, and U.S. Treasury Bills increased to $271.835 billion at September 30, 2024, from $121.845 billion at December 31, 2023[105] BNSF Performance - BNSF after-tax earnings increased by 13.3% in Q3 2024, benefiting from higher unit volume and improved employee productivity, but were offset by higher litigation charges[84] - BNSF's railroad operating revenues increased to $5.881 billion in Q3 2024 from $5.719 billion in Q3 2023, with operating earnings rising to $2.053 billion from $1.809 billion[108] - BNSF's net earnings increased to $1.383 billion in Q3 2024 from $1.221 billion in Q3 2023, with an effective income tax rate of 25.1%[108] - Consumer products revenue increased by 7.0% to $2.1 billion in Q3 2024 and by 8.2% to $6.2 billion in the first nine months of 2024, driven by a 16.7% volume increase in Q3 and a 16.9% increase in the first nine months[109] - Industrial products revenue decreased by 1.6% to $1.4 billion in Q3 2024 and by 1.1% to $4.2 billion in the first nine months of 2024, due to a 1.9% volume decline in Q3 and a 1.2% decline in the first nine months[109] - Agricultural products revenue increased by 14.1% to $1.4 billion in Q3 2024 and by 6.5% to $4.2 billion in the first nine months of 2024, driven by a 14.9% volume increase in Q3 and a 9.6% increase in the first nine months[109] - Coal revenue decreased by 14.7% to $795 million in Q3 2024 and by 25.2% to $2.2 billion in the first nine months of 2024, due to a 12.5% volume decline in Q3 and a 20.5% decline in the first nine months[111] - Railroad operating expenses decreased by 2.1% to $3.8 billion in Q3 2024 and by 1.5% to $11.6 billion in the first nine months of 2024, primarily due to lower fuel expenses and cost reductions[111] Berkshire Hathaway Energy (BHE) Performance - Berkshire Hathaway Energy (BHE) after-tax earnings increased by $1.1 billion in Q3 2024 and $1.3 billion in the first nine months of 2024, driven by lower litigation charges and higher earnings from natural gas pipelines[84] - BHE's net earnings increased by 218.1% to $1.778 billion in Q3 2024 and by 72.7% to $3.288 billion in the first nine months of 2024, driven by higher earnings from U.S. utilities and natural gas pipelines[113] - U.S. utilities net earnings increased by 190.6% to $926 million in Q3 2024 and by 72.7% to $1.569 billion in the first nine months of 2024, reflecting higher electric utility margins and income tax benefits[113] - Natural gas pipelines net earnings increased by 10.9% to $194 million in Q3 2024 and by 26.8% to $927 million in the first nine months of 2024, driven by higher transportation revenue and gas sales margins[113] - Other energy businesses net earnings increased by 20.9% to $358 million in Q3 2024 and by 17.4% to $1.019 billion in the first nine months of 2024, primarily due to higher earnings at Northern Powergrid[113] - Real estate brokerage net earnings decreased by 20.0% to $20 million in Q3 2024 and by 72.7% to -$96 million in the first nine months of 2024, mainly due to expense accruals related to ongoing litigation[113] Manufacturing, Service, and Retailing Performance - Manufacturing, service, and retailing after-tax earnings decreased by 5.9% in Q3 2024 and 3.5% in the first nine months of 2024, reflecting lower earnings from service and retailing businesses[84] - Manufacturing revenues increased by 2.6% in Q3 2024 and 2.6% in the first nine months of 2024 compared to 2023, with pre-tax earnings rising by 1.9% in Q3 and 4.4% in the first nine months[116] - Service and retailing revenues declined by 3.7% in Q3 2024 and 3.3% in the first nine months of 2024, with pre-tax earnings decreasing by 21.5% in Q3 and 20.4% in the first nine months[116] - Industrial products revenues increased by $289 million (3.3%) in Q3 2024 and $706 million (2.7%) in the first nine months of 2024, with pre-tax earnings rising by $62 million (4.3%) in Q3 and $322 million (7.3%) in the first nine months[118] - PCC's revenues grew by 11.9% in Q3 2024 and 12.4% in the first nine months of 2024, driven by higher demand for aerospace and power generation products, with pre-tax earnings increasing by 25.1% in Q3 and 23.4% in the first nine months[118] - Lubrizol's revenues increased by 2.8% in Q3 2024, with pre-tax earnings rising by 36.2% in Q3 and 44.7% in the first nine months of 2024, primarily due to lower raw material costs and higher sales volumes[118] - Marmon's revenues remained relatively unchanged in Q3 2024 but declined by 2.6% in the first nine months of 2024, with pre-tax earnings decreasing by 13.0% in Q3 and 9.4% in the first nine months, driven by lower revenues in the Transportation Products, Metals Services, and Retail Solutions groups[118] - Building products group revenues increased by $167 million (2.5%) in Q3 and $450 million (2.3%) in the first nine months of 2024 compared to 2023, while pre-tax earnings decreased by $97 million (8.3%) in Q3 and $135 million (4.1%) in the first nine months[119] - Clayton Homes' revenues increased by 8.7% to $3.2 billion in Q3 and 8.8% to $9.1 billion in the first nine months of 2024, with financial services revenues up 15.2% due to higher average loan balances of $26.4 billion as of September 30, 2024[121] - Clayton Homes' pre-tax earnings declined by $86 million (15.6%) in Q3 and $95 million (6.3%) in the first nine months of 2024, primarily due to increased losses from insurance claims and higher interest expenses[121] - Consumer products group revenues increased by 1.2% to $3.8 billion in Q3 and 3.0% to $11.0 billion in the first nine months of 2024, driven by higher revenues from Forest River, Jazwares, and Brooks Sports[122] - Consumer products group pre-tax earnings increased by $93 million (19.3%) in Q3 and $200 million (18.0%) in the first nine months of 2024, primarily due to higher earnings from apparel and footwear businesses and Duracell[122] - Service group revenues increased by $30 million (0.6%) in Q3 but declined by $108 million (0.7%) in the first nine months of 2024, with TTI revenues declining by 10.0% in Q3 and 12.1% in the first nine months[125] - Service group pre-tax earnings decreased by 26.3% in both Q3 and the first nine months of 2024, primarily due to lower earnings from TTI and aviation services businesses[125] - Retailing group revenues declined by 2.8% to $4.7 billion in Q3 and 2.9% to $14.0 billion in the first nine months of 2024, with BHA vehicle sales revenues decreasing by 1.4% in the first nine months[127] - Retailing group pre-tax earnings declined by $106 million (25.6%) in Q3 and $275 million (22.2%) in the first nine months of 2024, primarily due to lower vehicle gross margins[127] - McLane revenues declined by 5.6% in Q3 and 4.5% in the first nine months of 2024, but pre-tax earnings increased by $29 million (25.0%) in Q3 and $94 million (26.3%) in the first nine months due to higher gross margin rates and lower operating expenses[128] GEICO Performance - GEICO's pre-tax underwriting earnings increased to $2.033 billion in Q3 2024 and $5.747 billion in the first nine months of 2024, driven by higher average premiums per auto policy and lower claims frequencies[91] - GEICO's premiums written increased by $761 million (7.3%) in Q3 2024 and $2.5 billion (8.4%) in the first nine months of 2024, reflecting a 10.1% increase in average written premiums per auto policy[91] - GEICO's loss ratio decreased to 71.4% in Q3 2024 and 72.6% in the first nine months of 2024, down by 8.6 and 9.9 percentage points respectively, due to higher earned premiums and lower claims frequencies[91] - GEICO's expense ratio decreased to 9.1% in the first nine months of 2024, down by 0.6 percentage points, due to improved operating efficiencies and increased operating leverage[91] Investment Performance - Investment gains in Q3 2024 were $20.5 billion, compared to a loss of $29.8 billion in Q3 2023[132] - Net earnings for Q3 2024 were $16.2 billion, compared to a loss of $23.5 billion in Q3 2023[132] - Pre-tax unrealized investment gains were $18.6 billion in Q3 2024 and $45.1 billion in the first nine months of 2024[132] - Taxable gains from equity securities sales were $23.4 billion in Q3 2024 and $97.1 billion in the first nine months of 2024[132] - Berkshire's shareholders' equity increased by $67.8 billion to $629.1 billion as of September 30, 2024[134] - Berkshire repurchased $2.9 billion of its common stock in the first nine months of 2024[134] - Cash, cash equivalents, and U.S. Treasury Bills held by insurance and other businesses totaled $305.5 billion as of September 30, 2024[134] - Investments in equity and fixed maturity securities, excluding Kraft Heinz and Occidental, were $287.7 billion as of September 30, 2024[134] - Net operating cash flows for the first nine months of 2024 were $26.0 billion, including $17.5 billion in income tax payments[134] - Consolidated capital expenditures for property, plant, and equipment were $13.6 billion in the first nine months of 2024[134] - No Class A or Class B shares were repurchased in the third quarter of 2024[144] Legal and Regulatory Matters - Legal proceedings are not expected to have a material effect on financial condition or results of operations[141] - Significant business risks are described in the 2023 Form 10-K[142] - Forward-looking statements are subject to risks and uncertainties, including market price changes and catastrophic events[139] - No significant changes in internal control over financial reporting during the quarter[140] - Berkshire's disclosure controls and procedures are effective in timely alerting management to material information[140] - No material changes in market risks as of September 30, 2024[140] - Berkshire's common stock repurchase program allows repurchases when the price is below intrinsic value[144] Pilot Performance - Pilot's revenues declined by $2.5 billion (19.3%) in Q3 2024 and $6.3 billion (14.9%) in the first nine months of 2024 compared to 2023, primarily due to lower average fuel prices and reduced volumes in wholesale fuel and fuel marketing businesses[115] - Pilot's pre-tax earnings decreased by 25.4% in Q3 2024 and 30.8% in the first nine months of 2024 compared to 2023, with gross sales margins increasing 1.0% in Q3 but declining 2.3% in the first nine months[115] - Selling, general, and administrative expenses increased by 14.3% in Q3 2024 and 6.6% in the first nine months of 2024, driven by higher labor, marketing, and maintenance costs, as well as increased depreciation and amortization expenses[115] - Interest expense decreased by 41.6% in Q3 2024 and 24.3% in the first nine months of 2024, attributed to reduced borrowings and lower rates[115]

Financial Performance - Total revenues for the third quarter of 2024 were $92.995 billion, a slight decrease from $93.210 billion in the same quarter of 2023[7]. - The company reported a net income of $20.514 billion for the third quarter of 2024, compared to a net loss of $29.778 billion in the same quarter of 2023[7]. - Net earnings for the third quarter of 2024 were $26,480 million, compared to a loss of $12,567 million in the same period of 2023, representing a significant turnaround[9]. - Comprehensive income for the third quarter of 2024 was $26,674 million, compared to a loss of $12,619 million in the third quarter of 2023[9]. - Net earnings attributable to Berkshire Hathaway shareholders for the third quarter of 2024 were $26,251 million, compared to a loss of $12,767 million in the same quarter of 2023[8]. - Net earnings for the first nine months of 2024 reached $69,810 million, up from $59,389 million in 2023, representing a growth of approximately 17.5%[11]. - The effective income tax rate for the third quarter of 2024 was 18.5%, down from 25.9% in the same quarter of 2023, reflecting changes in pre-tax earnings and tax benefits[67]. Insurance Operations - Insurance premiums earned increased to $22.055 billion in Q3 2024 from $21.360 billion in Q3 2023, representing a growth of 3.3%[7]. - Total insurance revenues for the first nine months of 2024 were $77.3 billion, compared to $70.0 billion in the same period of 2023, reflecting a growth of approximately 10%[83]. - Insurance underwriting after-tax earnings decreased by $1.7 billion in Q3 2024 compared to Q3 2023, primarily due to estimated losses from Hurricane Helene[85]. - After-tax earnings from insurance investment income increased by $1.2 billion in Q3 2024, driven by higher interest income from U.S. Treasury Bills[85]. - GEICO's pre-tax underwriting earnings for the first nine months of 2024 were $5.747 billion, an increase from $2.270 billion in the same period of 2023[88]. - Premiums written by GEICO increased by $2.5 billion (8.4%) in the first nine months of 2024 compared to 2023, driven by a 10.1% increase in average written premiums per auto policy[90]. Investment Gains - Investment gains for the third quarter of 2024 were $20.5 billion, with net earnings of $16.2 billion, compared to a loss of $29.8 billion in Q3 2023[130]. - Investment gains for the third quarter of 2024 were $16.2 billion, a significant recovery from losses of $23.5 billion in Q3 2023[86]. - Investment gains from equity securities sold in the third quarter of 2024 were $23.4 billion, a significant increase from $759 million in the same period of 2023[29]. - The total proceeds from sales of equity securities in the first nine months of 2024 reached approximately $133.2 billion, compared to $32.8 billion in 2023[29]. Assets and Liabilities - Total assets as of September 30, 2024, reached $1,147.251 billion, up from $1,069.978 billion at the end of 2023, indicating a growth of approximately 7.3%[6]. - The total liabilities as of September 30, 2024, were $515.445 billion, an increase from $499.208 billion at the end of 2023, representing a growth of approximately 3.5%[6]. - The balance for future net premiums at September 30, 2024, is $38,785 million, down from $43,407 million in 2023, indicating a decrease of approximately 10.0%[54]. - Estimated liabilities for unpaid losses and loss adjustment expenses from property and casualty insurance and reinsurance contracts amounted to $148.9 billion[134]. Shareholder Equity - Shareholders' equity increased to $631.806 billion as of September 30, 2024, compared to $567.509 billion at the end of 2023, reflecting a growth of about 11.3%[6]. - The total shareholders' equity as of September 30, 2024, was $631,806 million, an increase from $531,497 million at the same date in 2023[10]. - Berkshire's shareholders' equity increased by $67.8 billion to $629.1 billion as of September 30, 2024, with net earnings of $69.3 billion for the first nine months of 2024[132]. Cash Flow and Capital Management - Cash and cash equivalents decreased to $32.287 billion from $33.672 billion at the end of 2023, a decline of approximately 4.1%[5]. - Cash and cash equivalents at the end of the third quarter of 2024 were $37,992 million, compared to $31,604 million at the end of the third quarter of 2023, an increase of approximately 20.3%[11]. - The company repurchased $2.9 billion of its common stock in the first nine months of 2024, maintaining a cash and cash equivalents balance of $305.5 billion[132]. - Berkshire repaid approximately $1.9 billion of maturing senior notes in the first nine months of 2024, demonstrating active debt management[59]. Legal and Regulatory Matters - The company anticipates that liabilities from pending legal actions will not materially affect its consolidated financial condition[76]. - National Indemnity Company recorded a pre-tax charge of $490 million related to a settlement agreement concerning bankruptcy filings[76]. - HomeServices of America, Inc. is facing antitrust claims with potential damages totaling approximately $9 billion, as indicated by plaintiffs in Texas[75]. Operational Highlights - BNSF's after-tax earnings increased by 13.3% in Q3 2024, benefiting from higher unit volume and improved employee productivity[85]. - Berkshire Hathaway Energy (BHE) reported an increase of $1.1 billion in after-tax earnings in Q3 2024 compared to Q3 2023, attributed to reduced litigation-related charges and higher earnings from natural gas pipelines[85]. - The electricity, natural gas, and fuel segment generated $49,655 million in revenue for the nine months ending September 30, 2024[79]. - Revenues from manufactured products totaled $62,048 million for Q3 2024, with significant contributions from industrial and commercial sectors at $18,347 million[78].

[Form 8-K Filing: Q2 2024 Earnings Announcement](index=1&type=section&id=Form%208-K%20Filing%3A%20Q2%202024%20Earnings%20Announcement) This Form 8-K reports Berkshire Hathaway's Q2 2024 earnings and lists related financial exhibits [Results of Operations and Financial Condition (Item 2.02)](index=2&type=section&id=ITEM%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) Berkshire Hathaway announced Q2 and first-half 2024 financial results via a press release, detailed in Exhibit 99.1 - On August 3, 2024, Berkshire Hathaway issued a press release announcing its earnings for the second quarter and the first six months ended June 30, 2024[4](index=4&type=chunk) - The earnings release is furnished as Exhibit 99.1 with this Form 8-K report[3](index=3&type=chunk) [Financial Statements and Exhibits (Item 9.01)](index=2&type=section&id=ITEM%209.01%20Financial%20Statements%20and%20Exhibits) This section formally lists the Form 8-K exhibits, including the earnings release and interactive data file, signed by the CFO - The exhibits filed with the report are Exhibit 99.1 (Earnings Release) and Exhibit 104 (Cover Page Interactive Data File)[3](index=3&type=chunk) - The report was duly signed on August 5, 2024, by Marc D. Hamburg, Senior Vice President and Chief Financial Officer[4](index=4&type=chunk)

Investment Performance - Investment gains in the first six months of 2023 included an after-tax non-cash remeasurement gain of approximately $2.4 billion related to a 38.6% interest in Pilot[86] - Investment gains in Q2 2024 were $23.9 billion, down from $33.1 billion in Q2 2023, while first six months gains were $25.7 billion compared to $67.8 billion in 2023[128] - After-tax equity earnings from non-controlled businesses decreased by $315 million in Q2 2024 and $478 million in the first six months compared to 2023[126] - Other earnings increased to $533 million in Q2 2024 from $340 million in Q2 2023, driven by higher interest income[129] Underwriting Earnings - GEICO's pre-tax underwriting earnings for Q2 2024 were $1.786 billion, a significant increase from $514 million in Q2 2023, while the first six months of 2024 saw earnings of $3.714 billion compared to $1.217 billion in 2023[87] - Berkshire Hathaway Primary Group's pre-tax underwriting earnings were $279 million in Q2 2024, up from $272 million in Q2 2023, and $765 million in the first six months of 2024 compared to $540 million in 2023[92] - Pre-tax underwriting earnings for property/casualty were $1,022 million in Q2 2024, down from $1,124 million in Q2 2023, and $2,030 million for the first six months, compared to $1,514 million in the same period last year[96] - Pre-tax earnings for BHE in Q2 2024 were $326 million, down from $624 million in Q2 2023[110] Premiums and Revenue - Premiums written by GEICO increased by $1.0 billion (10.7%) in Q2 2024 and $1.7 billion (8.9%) in the first six months of 2024 compared to 2023, driven by an 11.3% increase in average written premiums per auto policy[89] - Premiums written by Berkshire Hathaway Primary Group increased by $174 million (3.7%) in Q2 2024 and $509 million (5.7%) in the first six months of 2024 compared to 2023[92] - Property/casualty premiums earned increased by 5.3% in Q2 2024 to $5,608 million compared to $5,325 million in Q2 2023, and by 5.4% in the first six months to $11,043 million compared to $10,474 million in the same period last year[94] - Life/health premiums earned decreased by $69 million (5.4%) in Q2 2024 to $1,220 million compared to $1,289 million in Q2 2023, but increased by $100 million (4.3%) in the first six months to $2,449 million compared to $2,349 million in the same period last year[98] Loss Ratios and Expenses - Losses and loss adjustment expenses for GEICO declined by $437 million (5.3%) in Q2 2024 and $1.0 billion (6.3%) in the first six months of 2024 compared to 2023[89] - The loss ratio for Berkshire Hathaway Primary Group decreased by 1.2 percentage points in Q2 2024 and 3.1 percentage points in the first six months of 2024 compared to 2023, reflecting lower incurred losses from significant catastrophes[92] - GEICO's loss ratio was 74.1% in Q2 2024, a decrease of 10.2 percentage points compared to 2023, indicating improved claims management[89] - Underwriting expenses for GEICO declined by $80 million (7.9%) in Q2 2024 and $119 million (6.1%) in the first six months of 2024 compared to 2023[89] Tax Rates - The effective income tax rate for Berkshire Hathaway's net underwriting earnings was 20.5% in Q2 2024, down from 22.6% in Q2 2023[87] - The effective income tax rate for Q2 2024 was 18.4%, slightly down from 18.6% in Q2 2023, and 18.0% for the first six months compared to 18.1% in the same period last year[102] - The effective income tax rate for BHE in Q2 2024 was significantly negative at (133.1%), reflecting substantial production tax credits[110] - Effective income tax rate remained stable at 21.3% for both Q2 2024 and the first six months of 2024[128] Earnings and Cash Flow - Net earnings for Q2 2024 were $1,227 million, compared to $1,264 million in Q2 2023, reflecting a decrease of 2.9%[106] - Net earnings attributable to Berkshire Hathaway shareholders for Q2 2024 were $655 million, down from $785 million in Q2 2023[110] - Net earnings attributable to Berkshire shareholders for the first six months of 2024 were $43.1 billion, including after-tax investment gains of approximately $20.2 billion[130] - Operating cash flows for the first six months of 2024 were $24.2 billion, expected to be reduced by significant income tax payments in the remainder of the year[130] Revenue Trends - Operating revenues from consumer products increased by 12.0% in Q2 2024 to $2.1 billion, driven by a volume increase of 15.0%[107] - Operating revenues from coal decreased by 35.0% in Q2 2024 to $608 million, primarily due to a volume decline of 28.9%[109] - Total revenue for BHE in Q2 2024 was $6,492 million, up from $6,362 million in Q2 2023, with energy operating revenue increasing to $5,115 million[110] - Revenues for Pilot Travel Centers declined by $1.8 billion (11.9%) in Q2 2024 and $3.8 billion (12.9%) in the first six months compared to 2023[113] Capital and Investments - Berkshire's shareholders' equity increased by $40.4 billion to $601.7 billion as of June 30, 2024[130] - Berkshire repurchased $2.9 billion of its common stock in the first half of 2024[130] - Cash, cash equivalents, and U.S. Treasury Bills held by Berkshire's insurance and other businesses totaled $271.5 billion, including $237.6 billion in U.S. Treasury Bills[130] - Consolidated capital expenditures for property, plant, and equipment were $8.9 billion in the first six months of 2024, with forecasted capital expenditures for BHE and BNSF of approximately $7.4 billion for the remainder of 2024[130] Debt and Liabilities - Estimated liabilities for unpaid losses and loss adjustment expenses from property and casualty insurance and reinsurance contracts amounted to $146.3 billion as of June 30, 2024[133] - Berkshire's consolidated borrowings were $123.6 billion, with the parent company debt decreasing by $710 million to $18.1 billion[130] - BNSF's outstanding debt increased by $750 million to $24.2 billion as of June 30, 2024[130] Miscellaneous - The financial information from Berkshire Hathaway Inc.'s Quarterly Report for the quarter ended June 30, 2024, includes consolidated balance sheets and earnings statements[101] - The report is formatted in iXBRL, ensuring compliance with modern financial reporting standards[101] - The report was signed by Marc D. Hamburg, Senior Vice President and Principal Financial Officer, on August 3, 2024[145]

Cash and Investments - Cash and cash equivalents increased to $36.884 billion in June 2024 from $33.672 billion in December 2023[4] - Short-term investments in U.S. Treasury Bills surged to $234.618 billion in June 2024 from $129.619 billion in December 2023[4] - Investments in equity securities decreased to $284.871 billion in June 2024 from $353.842 billion in December 2023[4] - Cash, cash equivalents, and U.S. Treasury Bills increased to $224.2 billion at June 30, 2024, compared to $121.8 billion at December 31, 2023[98] - Purchases of U.S. Treasury Bills and fixed maturity securities in 2024 totaled $229,505 million, compared to $99,060 million in 2023[9] - Investments in fixed maturity securities as of June 30, 2024 had a fair value of $16,802 million, with 94% of foreign government holdings rated AA or higher[14][15] - Total amortized cost of investments is $16.603 billion, with $11.002 billion due within one year, $4.754 billion due after one year through five years, $577 million due after five years through ten years, and $129 million due after ten years[16] - Fair value of investments is $16.802 billion, with $10.990 billion due within one year, $4.756 billion due after one year through five years, $766 million due after five years through ten years, and $139 million due after ten years[16] - Investments in equity securities have a total fair value of $284.871 billion, with $94.926 billion in banks, insurance, and finance, $113.269 billion in consumer products, and $76.676 billion in commercial, industrial, and other sectors[18] - Approximately 72% of the aggregate fair value of equity securities is concentrated in five companies: American Express Company ($35.1 billion), Apple Inc. ($84.2 billion), Bank of America Corporation ($41.1 billion), The Coca-Cola Company ($25.5 billion), and Chevron Corporation ($18.6 billion)[18] - As of June 30, 2024, the company owns 151.6 million shares of American Express Company common stock, representing 21.3% of its outstanding common stock[19] - The company's investment in Occidental preferred stock has an aggregate liquidation value of approximately $8.5 billion as of June 30, 2024[19] - The company owns 26.9% of the outstanding Kraft Heinz common stock and 28.8% of the outstanding Occidental common stock as of June 30, 2024[20] - The carrying value of the company's investment in Occidental common stock exceeded its share of shareholders' equity by approximately $10 billion as of March 31, 2024[21] - Equity in earnings from Kraft Heinz was $242 million in the first six months of 2024, while distributions received were $260 million[22] - Equity in earnings from Occidental was $463 million in the first six months of 2024, while distributions received were $96 million[22] - Equity securities investment gains in Q2 2024 were $23.885 billion, compared to $33.077 billion in Q2 2023[27] - Taxable gains from equity securities sales in Q2 2024 were $59.6 billion, significantly higher than $2.4 billion in Q2 2023[27] - Investment gains (losses) recorded $23.9 billion in Q2 2024 and $25.7 billion in the first six months of 2024, with net earnings of $18.8 billion and $20.2 billion respectively[121] - Investment gains in Q2 2024 included after-tax realized gains of $47.0 billion from sales of investments[146] Financial Performance - Total revenues for Q2 2024 increased to $93.653 billion, up from $92.503 billion in Q2 2023[6] - Net earnings attributable to Berkshire Hathaway shareholders for Q2 2024 were $30.348 billion, compared to $35.912 billion in Q2 2023[6] - Comprehensive income attributable to Berkshire Hathaway shareholders for Q2 2024 was $30.543 billion, compared to $36.648 billion in Q2 2023[7] - Total costs and expenses for Q2 2024 decreased to $79.625 billion from $80.640 billion in Q2 2023[6] - Net earnings per average equivalent Class A share for Q2 2024 were $21,122, compared to $24,775 in Q2 2023[6] - Net earnings for the first six months of 2024 were $43,330 million, compared to $71,956 million in 2023[9] - Net cash flows from operating activities in 2024 were $24,168 million, up from $21,127 million in 2023[9] - Sales of equity securities in 2024 generated $97,123 million, significantly higher than $25,833 million in 2023[9] - Net earnings attributable to Berkshire Hathaway shareholders were $30.348 billion in Q2 2024, down from $35.912 billion in Q2 2023, with a six-month total of $43.050 billion in 2024 compared to $71.416 billion in 2023[79] - Investment gains in Q2 2024 were $18.750 billion, down from $25.869 billion in Q2 2023, with a six-month total of $20.230 billion in 2024 compared to $53.308 billion in 2023[79] - Operating earnings for Q2 2024 were $11.598 billion, up from $10.043 billion in Q2 2023[145] - Net earnings attributable to Berkshire shareholders for Q2 2024 were $30.348 billion, compared to $35.912 billion in Q2 2023[145] Insurance Operations - Insurance premiums earned in Q2 2024 rose to $21.953 billion, up from $20.561 billion in Q2 2023[6] - Insurance underwriting after-tax earnings increased by $1.0 billion in Q2 2024 and $2.7 billion in the first six months of 2024 compared to 2023, driven by improved GEICO performance[78] - GEICO's underwriting revenue increased to $10.469 billion in Q2 2024 from $9.714 billion in Q2 2023, with a total of $20.703 billion for the first six months of 2024 compared to $19.340 billion in 2023[76] - Total insurance revenue for Q2 2024 was $26.030 billion, up from $23.479 billion in Q2 2023, with a six-month total of $50.668 billion in 2024 compared to $45.667 billion in 2023[76] - GEICO's pre-tax underwriting earnings for the first six months of 2024 were $3,714 million, a significant increase from $1,217 million in 2023, driven by higher average premiums per auto policy and lower claims frequencies[83] - GEICO's premiums written increased by $1.7 billion (8.9%) in the first six months of 2024 compared to 2023, with average written premiums per auto policy rising by 11.3%[83] - GEICO's loss ratio decreased to 73.3% in the first six months of 2024, down 10.4 percentage points from 2023, reflecting lower claims frequencies and higher average earned premiums[83] - Berkshire Hathaway Primary Group's premiums written increased by $509 million (5.7%) in the first six months of 2024 compared to 2023, with premiums earned rising by 12.2%[86] - Berkshire Hathaway Primary Group's loss ratio decreased by 3.1 percentage points in the first six months of 2024 compared to 2023, due to lower incurred losses from significant catastrophes[86] - Berkshire Hathaway Reinsurance Group's property/casualty premiums earned increased to $11,043 million in the first six months of 2024, up from $10,474 million in 2023[88] - Berkshire Hathaway Reinsurance Group's pre-tax underwriting earnings for property/casualty were $2,030 million in the first six months of 2024, compared to $1,514 million in 2023[88] - GEICO's underwriting expenses declined by $119 million (6.1%) in the first six months of 2024 compared to 2023, with the expense ratio decreasing to 8.8%[83] - Berkshire Hathaway Primary Group's underwriting expenses increased by $390 million (18.2%) in the first six months of 2024 compared to 2023, reflecting higher premiums earned[86] - GEICO's claims frequencies in 2024 declined for property damage (2-3%) and collision (6-7%) coverages compared to 2023, while average claims severities increased across all coverages[83] - Premiums written declined by 5.4% in Q2 2024 and 1.1% in the first six months of 2024 compared to 2023, primarily due to reductions in property volumes[90] - Premiums earned increased by 5.3% in Q2 2024 and 5.4% in the first six months of 2024 compared to 2023[90] - Losses and loss adjustment expenses increased by $331 million (11.9%) in Q2 2024 but decreased by $63 million (1.0%) in the first six months of 2024 compared to 2023[90] - Underwriting expenses increased by $54 million (3.8%) in Q2 2024 and $116 million (4.2%) in the first six months of 2024 compared to 2023[90] - Pre-tax underwriting earnings from variable annuity guarantee reinsurance contracts were $11 million in Q2 2024 and $105 million in the first six months of 2024[95] - Insurance-underwriting earnings for Q2 2024 were $2.263 billion, up from $1.247 billion in Q2 2023[149] - Insurance-investment income for Q2 2024 was $3.320 billion, compared to $2.369 billion in Q2 2023[149] - Insurance float (net liabilities under insurance contracts) was approximately $169 billion as of June 30, 2024[150] Railroad, Utilities, and Energy - Property, plant and equipment in the Railroad, Utilities and Energy segment increased to $179.907 billion in June 2024 from $177.616 billion in December 2023[4] - Notes payable and other borrowings in the Railroad, Utilities and Energy segment decreased to $81.688 billion in June 2024 from $85.579 billion in December 2023[5] - Freight rail transportation revenues for Q2 2024 were $5.720 billion, slightly down from $5.808 billion in Q2 2023[6] - Utility and energy operating revenues for Q2 2024 were $18.048 billion, down from $19.593 billion in Q2 2023[6] - BNSF's after-tax earnings declined by 2.9% in Q2 2024 and 5.6% in the first six months of 2024 compared to 2023, reflecting litigation-related charges[78] - BHE's after-tax earnings decreased by $130 million in Q2 2024 but increased by $171 million in the first six months of 2024 compared to 2023, with mixed results across utilities and natural gas pipelines[78] - BNSF's railroad operating revenues were $5,704 million in Q2 2024, relatively unchanged from 2023, but decreased by 2.0% to $11,361 million in the first six months of 2024 compared to 2023[100] - BNSF's net earnings were $1,264 million in Q2 2024, a decrease from $1,378 million in 2023, and $2,370 million in the first six months of 2024, down from $2,511 million in 2023[100] - Consumer products volumes increased by 15.0% in Q2 2024 and 17.0% in the first six months of 2024 compared to 2023, driven by higher intermodal shipments and a new intermodal customer[101] - Industrial products volumes decreased by 1.5% in Q2 2024 and 0.9% in the first six months of 2024, primarily due to lower aggregates, taconite, minerals, and waste shipments[101] - Agricultural products volumes increased by 10.8% in Q2 2024 and 7.1% in the first six months of 2024, driven by higher grain exports, renewable fuels, and fertilizer shipments[101] - Coal volumes decreased by 28.9% in Q2 2024 and 24.7% in the first six months of 2024, primarily due to lower natural gas prices displacing coal as a fuel source[102] - BNSF's railroad operating expenses were $3,890 million in Q2 2024, a slight increase of 0.2% from 2023, and $7,818 million in the first six months of 2024, a decrease of 1.2% from 2023[102] - BHE's energy operating revenue increased to $5,115 million in Q2 2024 from $4,933 million in 2023, but decreased to $10,360 million in the first six months of 2024 from $10,404 million in 2023[103] - BHE's net earnings attributable to Berkshire Hathaway shareholders were $655 million in Q2 2024, down from $785 million in 2023, and $1,372 million in the first six months of 2024, up from $1,201 million in 2023[103] - BHE's effective income tax rate was (133.1)% in Q2 2024 and (109.1)% in the first six months of 2024, reflecting significant production tax credits from wind-powered electricity generation[103] - U.S. utilities net earnings declined by $163 million (37.9%) in Q2 2024 compared to 2023, primarily due to wildfire-related pre-tax loss accruals of $251 million[105] - Natural gas pipelines net earnings increased by $47 million (25.1%) in Q2 2024, driven by higher gas sales margin and transportation revenue[105] - Other energy businesses net earnings decreased by $10 million (2.6%) in Q2 2024, with renewable energy business earnings declining due to lower wind tax equity investments[105] - Real estate brokerage net earnings increased by $9 million (26.5%) in Q2 2024, but declined by $116 million in the first six months due to litigation-related expense accruals[105] - BNSF earnings for Q2 2024 were $1.227 billion, slightly down from $1.264 billion in Q2 2023[149] - Berkshire Hathaway Energy Company earnings for Q2 2024 were $655 million, down from $785 million in Q2 2023[149] Manufacturing, Service, and Retailing - Manufacturing revenues increased by $738 million (3.9%) in Q2 2024, with industrial products leading growth at $397 million (4.5%)[109] - Service and retailing revenues decreased by $619 million (2.7%) in Q2 2024, with pre-tax earnings declining by 20.1%[109] - Industrial products pre-tax earnings increased by $144 million (9.5%) in Q2 2024, with pre-tax margin improving to 17.9% from 17.1%[110] - Building products pre-tax earnings decreased by $144 million (11.7%) in Q2 2024, with pre-tax margin declining to 15.7% from 18.3%[110] - Consumer products pre-tax earnings increased by $26 million (7.3%) in Q2 2024, with pre-tax margin improving to 10.4% from 10.1%[110] - Industrial products group revenues increased by $397 million (4.5%) in Q2 2024 and $417 million (2.4%) in the first six months of 2024 compared to 2023[111] - PCC's revenues reached $2.7 billion in Q2 2024, a 15.0% increase, and $5.2 billion in the first six months of 2024, a 12.6% increase, driven by higher demand for aerospace products[111] - Lubrizol's revenues increased by 4.4% to $1.7 billion in Q2 2024, but decreased by 0.7% to $3.3 billion in the first six months of 2024 due to lower selling prices and unfavorable product mix[111] - Marmon's revenues decreased by 1.5% to $3.2 billion in Q2 2024 and 3.5% to $6.2 billion in the first six months of 2024, primarily due to reduced volumes in the Transportation Products group[111] - Clayton Homes' revenues increased by 8.7% to $3.1 billion in Q2 2024 and 8.9% to $5.9 billion in the first six months of 2024, driven by higher new home unit sales and increased financial services revenues[113] - Consumer products group revenues increased by $137 million (3.9%) in Q2 2024 and $278 million (4.0%) in the first six months of 2024, led by higher revenues from Forest River, Jazwares, and Brooks Sports[114] - Service group revenues increased by $30 million (0.6%) in Q2 2024 but declined by $138 million (1.3%) in the first six months of 2024, with TTI revenues declining by 10.6% in Q2 and 13.1% in the first six months[116] - Pre-tax earnings for the service group declined by $191 million (23.2%) in Q2 2024 and $437 million (26.3%) in the first six months of 2024, with TTI earnings declining by 50.8% in Q2 and 50.0% in the first six months[116] - Aviation services revenues increased by 10.4% in Q2 2024 and 9.5% in the first six months of 2024