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

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

[Form 8-K Current Report](index=1&type=section&id=Form%208-K%20Current%20Report) This Form 8-K reports Berkshire Hathaway's latest financial results and accompanying exhibits Common Stock Listing Details | Title of each class | Trading Symbols | Name of each exchange on which registered | | :--- | :--- | :--- | | Class A Common Stock | BRK.A | New York Stock Exchange | | Class B Common Stock | BRK.B | New York Stock Exchange | [Results of Operations and Financial Condition](index=2&type=section&id=ITEM%202.02%20Results%20of%20Operations%20and%20Financial%20Condition.) Berkshire Hathaway announced its fourth quarter and full year 2024 financial results via a press release furnished as an exhibit - Berkshire Hathaway announced its earnings for the fourth quarter and full year ended December 31, 2024, via a press release issued on February 22, 2025[4](index=4&type=chunk) [Financial Statements and Exhibits](index=2&type=section&id=ITEM%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the exhibits filed with the Form 8-K, including the earnings release and interactive data file - The following exhibits are furnished with this report: Exhibit 99.1: Berkshire Hathaway Inc. Earnings Release Dated February 22, 2025; Exhibit 104: Cover Page Interactive Data File[5](index=5&type=chunk)

Financial Performance - Net earnings attributable to Berkshire shareholders for 2024 were $88.995 billion, a decrease of 7.8% from $96.223 billion in 2023[277]. - Investment gains for 2024 were $41.558 billion, a decrease from $58.873 billion in 2023, reflecting significant volatility in market prices[277]. - Total revenue for 2024 was $26,348 million, a slight increase of 1.3% compared to $26,008 million in 2023[358]. - Net earnings attributable to Berkshire shareholders increased to $3,730 million in 2024, up 60.0% from $2,331 million in 2023[358]. - After-tax earnings from non-controlled businesses decreased by $231 million in 2024 compared to 2023, primarily due to lower earnings from Kraft Heinz and Pilot[435]. - Investment gains in 2024 were $52.8 billion, a decrease from $74.9 billion in 2023, while net earnings were $41.6 billion[438]. - Berkshire's shareholders' equity increased by $88.1 billion to $649.4 billion as of December 31, 2024[444]. Insurance Operations - Insurance underwriting generated after-tax earnings of $9.0 billion in 2024, up from $5.4 billion in 2023, with significant improvements at GEICO[280]. - GEICO's pre-tax underwriting earnings increased to $7.813 billion in 2024 from $3.635 billion in 2023, driven by higher average premiums and lower claims frequencies[290]. - Losses and loss adjustment expenses for GEICO decreased by $1.5 billion (4.7%) in 2024, resulting in a loss ratio of 71.8% compared to 81.0% in 2023[296]. - Estimated ultimate liabilities for losses from prior accident years were reduced by $1.7 billion in 2024, compared to $1.4 billion in 2023[316]. - The Berkshire Hathaway Reinsurance Group recorded a pre-tax charge of $490 million in 2024 related to a settlement agreement concerning non-insurance affiliates[317]. - The company anticipates claims payments in 2025 of approximately $38 billion related to claims occurring prior to 2025[455]. - A one percentage point change in BI claims severities could result in a $220 million increase or decrease in recorded liabilities, impacting pre-tax earnings correspondingly[465]. Investment Income - Net investment income for 2024 was $13.67 billion, up from $9.57 billion in 2023, reflecting a significant increase in interest and other investment income[330]. - Interest and other investment income increased by $5.5 billion in 2024 compared to 2023, primarily due to increases in U.S. Treasury Bill and short-term investment balances[331]. - Dividend income declined by $302 million (5.5%) in 2024 compared to 2023, reflecting net reductions in equity security holdings[332]. Operating Segments - BNSF's after-tax earnings declined by 1.1% in 2024 compared to 2023, impacted by labor agreement charges and ongoing litigation[281]. - Railroad operating revenues decreased by 0.5% in 2024 to $23.355 billion compared to 2023, with a net volume increase of 6.5%[340]. - Operating revenues from consumer products increased by 7.1% in 2024 to $8.4 billion, driven by a volume increase of 16.2%[343]. - Manufacturing revenues reached $77,231 million in 2024, a 2.4% increase from $75,405 million in 2023[374]. - Service and retailing revenues decreased by 3.9% to $138,672 million in 2024, down from $144,342 million in 2023[374]. Expenses and Liabilities - Losses and loss adjustment expenses rose by $1.4 billion (12.8%) in 2024, with a loss ratio increase of 2.1 percentage points compared to 2023[307]. - Underwriting expenses increased by $681 million (15.0%) in 2024, resulting in an expense ratio of 27.8%, up 1.3 percentage points from 2023[308]. - The company recorded approximately $147.6 billion in consolidated claim liabilities as of December 31, 2024, with 74% related to GEICO and the Berkshire Hathaway Reinsurance Group[460]. - The gross unpaid losses and loss adjustment expenses total $51.636 billion, consisting of $16.570 billion in property and $35.066 billion in casualty[467]. Capital Management - The company repurchased $2.9 billion of its common stock in 2024, maintaining a focus on financial strength and liquidity[445]. - Cash, cash equivalents, and U.S. Treasury Bills held by insurance and other businesses totaled $318.0 billion as of December 31, 2024[446]. - Consolidated capital expenditures for 2024 were $19.0 billion, with BNSF and BHE forecasting approximately $14.0 billion in capital expenditures for 2025[452]. Miscellaneous - Float was approximately $171 billion at December 31, 2024, up from $169 billion in 2023 and $164 billion in 2022[334]. - The effective income tax rate for BNSF increased to 24.3% in 2024 from 23.1% in 2023[340]. - The methodologies for estimating IBNR liabilities involve various actuarial techniques, including paid and incurred loss development methods and Bornhuetter-Ferguson methods[473][474].

Earnings Announcement and Reporting - Berkshire Hathaway Inc. announced its earnings for the third quarter and first nine months ended September 30, 2024 [4] - The earnings release was issued on November 2, 2024 [4] - The press release is included as an exhibit to the Form 8-K filing [4] Executive Signatory - Marc D. Hamburg, Senior Vice President and Chief Financial Officer, signed the report on November 4, 2024 [5]

Earnings and Financial Performance - Net earnings attributable to Berkshire Hathaway shareholders for the third quarter of 2024 were $26.251 billion, compared to a loss of $12.767 billion in the same period in 2023[85] - Net earnings for Q3 2024 were $16.2 billion, compared to a loss of $23.5 billion in Q3 2023[132] - Net earnings attributable to Berkshire shareholders were $69.3 billion for the first nine months of 2024[134] - Investment gains in Q3 2024 were $20.5 billion, compared to a loss of $29.8 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] Insurance Operations - Insurance underwriting after-tax earnings decreased by $1.7 billion in the third quarter of 2024, primarily due to Hurricane Helene losses of $565 million[84] - Insurance investment income after-tax earnings increased by $1.2 billion in the third quarter of 2024, driven by higher interest income from U.S. Treasury Bills[84] - GEICO's pre-tax underwriting earnings increased to $2.033 billion in the third quarter of 2024, up from $1.053 billion in 2023, driven by higher average premiums and lower claims frequencies[91] - GEICO's premiums written increased by $761 million (7.3%) in the third quarter of 2024, with average written premiums per auto policy rising by 10.1%[91] - GEICO's loss ratio improved to 71.4% in the third quarter of 2024, down from 80.0% in 2023, reflecting higher average earned premiums and lower claims frequencies[91] - Hurricane Milton is estimated to cause pre-tax incurred losses between $1.3 billion and $1.5 billion, which will be reflected in the fourth quarter of 2024[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 a loss ratio increase of 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 were relatively unchanged in Q3 and the first nine months of 2024 compared to 2023, with premiums earned decreasing by 5.0% in Q3 and 1.7% in the first nine months[99] - Losses from significant catastrophe events (Hurricane Helene) were approximately $380 million in 2024, compared to $550 million in the first nine months of 2023[99] - Underwriting expenses 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 related to a settlement agreement[99] - Estimated liabilities for unpaid losses and loss adjustment expenses from insurance contracts were $148.9 billion as of September 30, 2024[137] Railroad Operations (BNSF) - BNSF after-tax earnings increased by 13.3% in the third quarter of 2024, benefiting from higher unit volume and improved employee productivity[84] - BNSF's railroad operating revenues increased to $5.881 billion in Q3 2024 from $5.719 billion in Q3 2023, with total railroad operating earnings rising to $2.053 billion in Q3 2024 from $1.809 billion in Q3 2023[108] - BNSF's net earnings for Q3 2024 were $1.383 billion, up 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 higher volumes of 16.7% and 16.9% respectively[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 lower volumes of 1.9% and 1.2% respectively[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 higher volumes of 14.9% and 9.6% respectively[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 reduced volumes of 12.5% and 20.5% respectively[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[111] Energy Operations (Berkshire Hathaway Energy) - Berkshire Hathaway Energy (BHE) after-tax earnings increased by $1.1 billion in the third quarter of 2024, reflecting lower litigation-related charges and higher earnings from natural gas pipelines[84] - BHE's net earnings attributable to Berkshire Hathaway shareholders increased to $1.629 billion in Q3 2024 and $3.001 billion in the first nine months of 2024, compared to $498 million and $1.699 billion respectively in 2023[112] - U.S. utilities net earnings increased by 190.6% to $1.569 billion in the first nine months of 2024, driven by higher retail customer rates and volumes[113] - Natural gas pipelines net earnings increased by 26.8% to $927 million in the first nine months of 2024, due to higher transportation revenue and increased margin on gas sales[113] - Other energy businesses net earnings increased by 17.4% to $1.019 billion in the first nine months of 2024, driven by higher distribution revenue and lower income tax expense[113] Manufacturing, Service, and Retailing - Manufacturing, service, and retailing after-tax earnings decreased by 5.9% in the third quarter of 2024, with lower earnings from service and retailing businesses partially offset by gains in manufacturing[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 increased 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[118] - Lubrizol's pre-tax earnings increased by 36.2% in Q3 2024 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 flat 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[118] - Building products group revenues increased by $167 million (2.5%) in Q3 2024 and $450 million (2.3%) in the first nine months of 2024 compared to 2023[119] - Clayton Homes' revenues increased by 8.7% to $3.2 billion in Q3 2024 and 8.8% to $9.1 billion in the first nine months of 2024 compared to 2023[121] - Clayton Homes' loan balances, net of allowances for credit losses, were approximately $26.4 billion as of September 30, 2024, an increase of 14.2% since September 30, 2023[121] - Consumer products group revenues increased by 1.2% to $3.8 billion in Q3 2024 and 3.0% to $11.0 billion in the first nine months of 2024 compared to 2023[122] - Forest River revenues increased by 6.5% in the first nine months of 2024, reflecting a 9.1% increase in unit sales[122] - Service group revenues increased by $30 million (0.6%) in Q3 2024 but declined by $108 million (0.7%) in the first nine months of 2024 compared to 2023[125] - Retailing group revenues declined by 2.8% to $4.7 billion in Q3 2024 and 2.9% to $14.0 billion in the first nine months of 2024 compared to 2023[127] - McLane revenues declined by 5.6% in Q3 2024 and 4.5% in the first nine months of 2024 compared to 2023[128] - Pre-tax earnings of the building products group decreased by $97 million (8.3%) in Q3 2024 and $135 million (4.1%) in the first nine months of 2024 compared to 2023[119] Investments and Cash Management - Dividend income declined by $131 million (10.7%) in Q3 2024 and $207 million (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, driven by increased short-term investments including U.S. Treasury Bills[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] - Cash, cash equivalents, and U.S. Treasury Bills held by insurance and other businesses totaled $305.5 billion as of September 30, 2024[134] - After-tax equity earnings in non-controlled businesses declined by $27 million in Q3 2024 and $505 million in the first nine months of 2024 compared to 2023[129] Legal and Regulatory Risks - Berkshire does not believe routine litigation will have a material effect on its financial condition[141] - The company faces risks from changes in market prices of equity securities, catastrophic events, and changes in laws or regulations[139] - Berkshire is involved in various legal actions, some of which may seek punitive or exemplary damages[141] - The company's forward-looking statements are subject to risks and uncertainties, including economic and market factors[139] - Berkshire's significant business risks are described in its 2023 Form 10-K, with additional risks potentially impacting operations[142] Share Repurchases and Capital Expenditures - Berkshire repurchased $2.9 billion of its common stock in the first nine months of 2024[134] - No Class A or Class B shares were repurchased in the third quarter of 2024[144] - Berkshire's common stock repurchase program allows repurchases when the price is below intrinsic value[144] - Consolidated capital expenditures for property, plant, and equipment were $13.6 billion in the first nine months of 2024[134] Internal Controls and Disclosure - 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] - The company's internal control over financial reporting has not seen significant changes during the quarter[140] Life and Health Insurance - 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, primarily due to reductions in non-U.S. life business[100] - Life and health benefits decreased to 67.1% in Q3 2024 from 77.9% in Q3 2023, and to 68.0% in the first nine months of 2024 from 74.3% in the same period of 2023[100] - Pre-tax underwriting earnings for life/health were $98 million in Q3 2024 and $279 million in the first nine months of 2024, compared to $50 million and $234 million in the respective periods of 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, driven by gains from life contract commutations and increased U.S. life business earnings[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, mainly due to loss payments[101] Real Estate and Other Businesses - Real estate brokerage net earnings decreased by $121 million in the first nine months of 2024, primarily due to expense accruals related to ongoing litigation matters[113] - 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 fuel prices and reduced wholesale fuel volumes[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 by 1.0% in Q3 but declining by 2.3% in the first nine months[115] - Pilot's 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[115] - Pilot's interest expense decreased by 41.6% in Q3 2024 and 24.3% in the first nine months of 2024, due to reduced borrowings and lower interest 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 $29.5 billion for the first nine months of 2024, compared to $25.5 billion for the same period in 2023, indicating a year-over-year increase of 15.7%[7]. - Net earnings for Q3 2024 were $26,480 million, compared to a loss of $12,567 million in Q3 2023, representing a significant turnaround[9]. - Comprehensive income for Q3 2024 was $26,674 million, compared to a loss of $12,619 million in Q3 2023[9]. - 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]. 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, reflecting a growth of 7.3%[6]. - The total liabilities as of September 30, 2024, were $515.445 billion, up from $499.208 billion at the end of 2023, an increase of 3.5%[6]. - Shareholders' equity increased to $631.806 billion as of September 30, 2024, compared to $567.509 billion at the end of 2023, marking an increase of 11.3%[6]. - The company’s retained earnings rose to $676.524 billion as of September 30, 2024, compared to $607.350 billion at the end of 2023, reflecting an increase of 11.4%[6]. Investment Gains and Securities - Investment gains for the third quarter of 2024 were $20.514 billion, a significant recovery from a loss of $29.778 billion in Q3 2023[7]. - The company reported unrealized gains on investments of $134 million in Q3 2024, up from $11 million in Q3 2023[9]. - The total fair value of equity securities as of September 30, 2024, was $271,650 million, with a cost basis of $78,112 million, resulting in net unrealized gains of $193,538 million[21]. - Investment gains on equity securities sold in Q3 2024 were $23.4 billion, a significant increase from $759 million in Q3 2023[29]. Insurance Operations - Total insurance revenues for the first nine months of 2024 were $77.3 billion, compared to $70.0 billion in 2023[83]. - GEICO's revenues for the third quarter of 2024 were $10.7 billion, up from $9.8 billion in 2023, while year-to-date revenues increased to $31.4 billion from $29.2 billion[83]. - 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]. - Losses and loss adjustment expenses for GEICO declined by $1.3 billion (5.2%) in the first nine months of 2024 compared to 2023, with a loss ratio of 72.6%, down 9.9 percentage points[90]. Cash Flow and Capital Management - Cash and cash equivalents at the end of Q3 2024 were $37,992 million, compared to $31,604 million at the end of Q3 2023, reflecting an increase of approximately 20.3%[11]. - Net cash flows from operating activities decreased to $25,971 million in 2024 from $34,796 million in 2023, a decline of about 25.5%[11]. - Berkshire repaid approximately $1.9 billion of maturing senior notes in the first nine months of 2024, demonstrating active debt management[59]. - The total borrowings of Berkshire as of September 30, 2024, amounted to $43,651 million, an increase from $42,692 million at the end of 2023[58]. 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 - Revenues from manufactured products totaled $62,048 million for Q3 2024, with significant contributions from industrial and commercial sectors at $18,347 million[78]. - The electricity, natural gas, and fuel segment generated $49,655 million in revenue for the nine months ending September 30, 2024[79]. - BNSF's railroad operating revenues for Q3 2024 were $5,881 million, a 2.8% increase from $5,719 million in Q3 2023[108]. - BHE's total revenue for Q3 2024 was $7,335 million, slightly up from $7,281 million in Q3 2023[111]. Shareholder Returns - The company repurchased 5.85% of Berkshire Hathaway Energy Company's outstanding common stock for $2,400 million and a promissory note for $600 million[14]. - In the first nine months of 2024, Berkshire repurchased $2.9 billion of its common stock and held cash and equivalents of $305.5 billion[132]. - The company’s common stock repurchase program allows for repurchases when the price is below intrinsic value, with no specified maximum number of shares[66].

[Form 8-K Current Report](index=1&type=section&id=Form%208-K%20Current%20Report) This Form 8-K reports significant events, including the announcement of financial results and the filing of related exhibits [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) Berkshire Hathaway announced its Q2 and first-half 2024 earnings via a press release furnished as Exhibit 99.1 - Berkshire Hathaway issued a press release on August 3, 2024, announcing earnings for the second quarter and first six months ended June 30, 2024[4](index=4&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section details the exhibits filed with the Form 8-K, including the earnings release and interactive data file, and confirms the report's authorization - The report furnishes Exhibit 99.1, the Earnings Release dated August 3, 2024, and Exhibit 104, the Cover Page Interactive Data File[3](index=3&type=chunk) - The report was signed and authorized by Marc D. Hamburg, Senior Vice President and Chief Financial Officer, on August 5, 2024[4](index=4&type=chunk)

Part I – Financial Information [Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents Berkshire Hathaway Inc.'s unaudited consolidated financial statements and related notes for the periods ended June 30, 2024 Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$1,108,860** | **$1,069,978** | | Cash and cash equivalents | $42,324 | $38,022 | | Short-term investments in U.S. Treasury Bills | $234,618 | $129,619 | | Investments in equity securities | $284,871 | $353,842 | | Goodwill | $84,411 | $84,626 | | **Total Liabilities** | **$500,889** | **$499,208** | | Unpaid losses and loss adjustment expenses | $146,298 | $145,729 | | Notes payable and other borrowings | $123,628 | $128,271 | | **Total Shareholders' Equity** | **$607,971** | **$567,509** | Consolidated Earnings Highlights (in millions, except per share) | Metric | Q2 2024 | Q2 2023 | First Six Months 2024 | First Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$93,653** | **$92,503** | **$183,522** | **$177,896** | | Investment gains (losses) | $23,857 | $33,061 | $25,733 | $67,819 | | **Net Earnings Attributable to BRK** | **$30,348** | **$35,912** | **$43,050** | **$71,416** | | Net earnings per avg. Class A share | $21,122 | $24,775 | $29,936 | $49,152 | Consolidated Cash Flow Highlights - First Six Months (in millions) | Cash Flow Category | 2024 | 2023 | | :--- | :--- | :--- | | **Net cash flows from operating activities** | **$24,168** | **$21,127** | | Net cash flows from investing activities | ($10,651) | $2,736 | | Net cash flows from financing activities | ($8,948) | ($9,633) | - In January 2024, Berkshire acquired the remaining noncontrolling interests in Pilot Travel Centers for **$2.6 billion**, increasing its ownership to **100%**[14](index=14&type=chunk) - As of June 30, 2024, approximately **72%** of the equity portfolio's fair value was concentrated in five companies: American Express (**$35.1 billion**), Apple (**$84.2 billion**), Bank of America (**$41.1 billion**), Coca-Cola (**$25.5 billion**), and Chevron (**$18.6 billion**)[19](index=19&type=chunk) - Significant legal contingencies exist: PacifiCorp recorded cumulative estimated probable wildfire losses of approximately **$2.7 billion** through June 30, 2024, and HomeServices agreed to a proposed nationwide class action settlement of **$250 million** related to antitrust claims[73](index=73&type=chunk)[74](index=74&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes the company's financial condition and results of operations, highlighting key drivers such as investment gains, insurance performance, and segment-specific impacts After-Tax Earnings by Segment - First Six Months (in millions) | Segment | 2024 | 2023 | | :--- | :--- | :--- | | Insurance – underwriting | $4,861 | $2,158 | | Insurance – investment income | $5,918 | $4,338 | | BNSF | $2,370 | $2,511 | | Berkshire Hathaway Energy (BHE) | $1,372 | $1,201 | | Pilot Travel Centers (Pilot) | $238 | $197 | | Manufacturing, service and retailing | $6,230 | $6,371 | | Investment gains | $20,230 | $53,308 | | **Total Net Earnings** | **$43,050** | **$71,416** | - The company emphasizes that investment gains and losses, driven by market fluctuations, are generally **meaningless** for understanding periodic operating results and cause **significant volatility** in reported earnings[86](index=86&type=chunk)[128](index=128&type=chunk) [Insurance—Underwriting](index=41&type=section&id=Insurance%E2%80%94Underwriting) This section details the significant increase in insurance underwriting earnings, primarily driven by GEICO's improved performance and the absence of major catastrophe events Pre-Tax Underwriting Earnings by Insurance Group - First Six Months (in millions) | Group | 2024 | 2023 | | :--- | :--- | :--- | | GEICO | $3,714 | $1,217 | | Berkshire Hathaway Primary Group | $765 | $540 | | Berkshire Hathaway Reinsurance Group | $1,694 | $1,058 | | **Total** | **$6,173** | **$2,815** | - GEICO's underwriting results improved dramatically due to an **11.3%** increase in average written premiums per auto policy and lower claims frequencies, with the loss ratio improving by **10.4 percentage points** to **73.3%** in the first half of 2024[89](index=89&type=chunk) - BHRG's property/casualty reinsurance business experienced **no significant catastrophe loss events** in the first half of 2024, compared to **$530 million** in losses in the same period of 2023[96](index=96&type=chunk) [Insurance—Investment Income](index=47&type=section&id=Insurance%E2%80%94Investment%20Income) This section highlights the significant increase in insurance investment income, primarily driven by higher interest rates and increased holdings of U.S. Treasury Bills Insurance Investment Income - First Six Months (in millions) | Income Source | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Dividend income | $2,690 | $2,766 | (2.7)% | | Interest and other investment income | $4,530 | $2,531 | 79.0% | | **Pre-tax net investment income** | **$7,220** | **$5,297** | **36.3%** | - The float of the insurance businesses was approximately **$169 billion** at June 30, 2024, with cash, cash equivalents, and U.S. Treasury Bills held by insurance operations increasing to **$224.2 billion** from **$121.8 billion** at year-end 2023[103](index=103&type=chunk)[104](index=104&type=chunk) [BNSF](index=49&type=section&id=BNSF) BNSF's pre-tax earnings decreased due to lower average revenue per car/unit and litigation costs, despite an increase in total car/unit volumes BNSF Key Metrics - First Six Months 2024 vs 2023 | Metric | 2024 (in millions) | 2023 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Railroad operating revenues | $11,361 | $11,592 | (2.0)% | | Railroad operating earnings | $3,543 | $3,676 | (3.6)% | | **Net earnings** | **$2,370** | **$2,511** | **(5.6)%** | - Volume changes by segment (First Six Months 2024 vs 2023): Consumer products: **+17.0%**, Industrial products: **-0.9%**, Agricultural products: **+7.1%**, Coal: **-24.7%**[107](index=107&type=chunk) - Operating expenses in Q2 and H1 2024 included **litigation costs** related to a legal case with the Swinomish Tribe, which BNSF has appealed[109](index=109&type=chunk) [Berkshire Hathaway Energy (BHE)](index=51&type=section&id=Berkshire%20Hathaway%20Energy%20%28BHE%29) BHE's net earnings were impacted by wildfire-related charges and real estate litigation, partially offset by strong performance in natural gas pipelines BHE Net Earnings by Business - First Six Months (in millions) | Business | 2024 | 2023 | | :--- | :--- | :--- | | U.S. utilities | $643 | $593 | | Natural gas pipelines | $733 | $556 | | Other energy businesses | $661 | $572 | | Real estate brokerage | ($116) | $0 | | Corporate interest and other | ($411) | ($376) | | **Total BHE Net Earnings** | **$1,510** | **$1,345** | - PacifiCorp's results were negatively affected by pre-tax loss accruals for wildfires, amounting to **$251 million** in the first six months of 2024[111](index=111&type=chunk) - The real estate brokerage business (HomeServices) recorded a **significant decline** in earnings due to expense accruals related to ongoing real estate industry litigation matters[111](index=111&type=chunk) [Pilot Travel Centers, LLC ('Pilot')](index=54&type=section&id=Pilot%20Travel%20Centers%2C%20LLC%20%28%27Pilot%27%29) Pilot's revenues and pre-tax earnings declined due to lower fuel prices, reduced volumes, and increased operating expenses - Berkshire began consolidating Pilot's results on February 1, 2023, after increasing its stake to **80%**, and acquired the remaining **20%** in January 2024[112](index=112&type=chunk) Pilot Financial Summary (in millions) | Metric | First Six Months 2024 | Five Months Ending June 30, 2023 | | :--- | :--- | :--- | | Revenues | $25,502 | $24,262 | | Pre-tax earnings | $269 | $322 | | Net earnings attributable to BRK | $238 | $197 | [Manufacturing, Service and Retailing](index=55&type=section&id=Manufacturing%2C%20Service%20and%20Retailing) The manufacturing, service, and retailing group's pre-tax earnings slightly decreased, with manufacturing strength offset by declines in service and retailing segments Pre-tax Earnings by MSR Sub-segment - First Six Months (in millions) | Sub-segment | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Manufacturing | $6,043 | $5,714 | 5.8% | | Service and retailing | $2,184 | $2,725 | (19.9)% | | **Total** | **$8,227** | **$8,439** | **(2.5)%** | - Industrial products earnings rose **8.8%** in H1 2024, driven by a **12.6%** revenue increase at PCC (aerospace) and a **48.8%** earnings jump at Lubrizol (specialty chemicals)[117](index=117&type=chunk) - Service group earnings fell **26.3%** in H1 2024, largely due to a **50.0%** earnings decline at TTI (electronics distribution) caused by lower demand and reduced margins[122](index=122&type=chunk) - Retailing group earnings dropped **20.6%** in H1 2024, with BHA's earnings down **9.8%** on lower vehicle margins and other retailers seeing a **42.3%** aggregate decline[124](index=124&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section confirms no material changes to market risks since the 2023 Annual Report on Form 10-K - There were **no material changes** in market risks since the year-ended December 31, 2023 Form 10-K filing[136](index=136&type=chunk) [Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no significant changes to internal controls over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures are **effective**[137](index=137&type=chunk) - **No significant changes** were made to internal controls over financial reporting during the second quarter[137](index=137&type=chunk) Part II – Other Information [Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings) This section addresses routine legal actions and refers to Note 23 for significant litigation involving subsidiaries - Berkshire and its subsidiaries are party to routine legal actions arising from the normal course of business, which are **not expected to have a material effect**[138](index=138&type=chunk) - Significant legal matters concerning subsidiaries are detailed in **Note 23** to the Consolidated Financial Statements[138](index=138&type=chunk) [Risk Factors](index=65&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the detailed description of significant business risks in the 2023 Annual Report on Form 10-K, with no material updates for the quarter - The report references **Item 1A of the Form 10-K** for the year ended December 31, 2023, for a description of significant business risks[139](index=139&type=chunk) [Issuer Repurchases of Equity Securities](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds%20and%20Issuer%20Repurchases%20of%20Equity%20Securities) This section details the company's Class A common stock repurchases during the second quarter of 2024, outlining the program's terms and conditions Share Repurchases in Q2 2024 | Period | Class | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | :--- | | April 2024 | A | 455 | $620,809.76 | | May 2024 | A | 100 | $626,685.61 | | June 2024 | A | — | — | | **Total Q2** | **A** | **555** | **N/A** | - The repurchase program allows for repurchases when the price is **below Berkshire's intrinsic value**, as determined by Warren Buffett, and does not specify a **maximum number of shares**[140](index=140&type=chunk) [Other Information](index=66&type=section&id=Item%205.%20Other%20Information) This section confirms that no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or executive officers during Q2 2024 - **No directors or executive officers** adopted or terminated a **Rule 10b5-1 trading arrangement** during Q2 2024[143](index=143&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 (402) 346-1400 REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐ On May 4, 2024, Berksh ...