Berkshire Hathaway Inc. News Release

Rhea-AI Summary

Berkshire Hathaway has released its financial results for Q4 and full-year 2024. The company reported significant investment fluctuations, with Q4 2024 showing after-tax gains of $2.1 billion, while the full year experienced after-tax losses of $38.1 billion. This contrasts with 2023's performance, which saw after-tax gains of $29.5 billion in Q4 and $53.0 billion for the full year.

The company's realized gains were substantial in 2024, reaching $3.1 billion in Q4 and $79.6 billion for the full year. Share repurchases totaled approximately $2.9 billion during 2024. As of December 31, 2024, there were 1,438,223 Class A equivalent shares outstanding. The company's insurance float increased by $2 billion to approximately $171 billion compared to year-end 2023.

Positive

• Insurance float increased by $2 billion to $171 billion
• Substantial realized gains of $79.6 billion for full-year 2024
• Q4 2024 showed after-tax gains of $2.1 billion

Negative

• Full-year 2024 experienced after-tax losses of $38.1 billion on unrealized investments

Insights

Financial Analyst

Berkshire Hathaway's 2024 financial results present a complex picture that requires careful interpretation beyond headline numbers. The $38.1 billion unrealized investment loss for 2024, contrasting with 2023's $53.0 billion gain, reflects market volatility rather than operational performance. More tellingly, the company realized $79.6 billion in gains during 2024, a strategic decision that suggests optimal timing in crystallizing investment returns.

The insurance float's growth to $171 billion represents a critical competitive advantage, providing Berkshire with a substantial pool of cost-effective capital for investments. This 1.2% increase in float demonstrates continued strength in insurance operations and the company's ability to maintain its capital-generation engine.

Share repurchases of $2.9 billion indicate disciplined capital allocation, though relatively modest compared to Berkshire's substantial cash reserves. This measured approach to buybacks aligns with the company's historical preference for maintaining significant liquidity for potential large acquisitions.

The stark contrast between unrealized losses and realized gains suggests a strategic portfolio rebalancing, possibly capitalizing on market conditions to optimize the investment portfolio. This active management approach, while unusual for Berkshire's typically long-term holding strategy, demonstrates adaptability in capital allocation decisions.

OMAHA, Neb.--(BUSINESS WIRE)-- (BRK.A; BRK.B) –

Berkshire’s operating results for the fourth quarter and full year of 2024 and 2023 are summarized in the following paragraphs. However, we urge investors and reporters to read our 2024 Annual Report, which has been posted at www.berkshirehathaway.com. The limited information that follows in this press release is not adequate for making an informed investment judgment.

Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the fourth quarter and full year of 2024 and 2023 are summarized below. Earnings are stated on an after-tax basis. (Dollar amounts are in millions, except for per share amounts).

		Fourth Quarter						Full Year
			2024			2023			2024			2023
Net earnings attributable to Berkshire shareholders		$	19,694		$	37,574		$	88,995		$	96,223
Net earnings includes:
Investment gains/losses			5,167			29,093			41,558			58,873
Operating earnings			14,527			8,481			47,437			37,350
Net earnings attributable to Berkshire shareholders		$	19,694		$	37,574		$	88,995		$	96,223
Net earnings per average equivalent Class A Share		$	13,695		$	26,043		$	61,900		$	66,412
Net earnings per average equivalent Class B Share		$	9.13		$	17.36		$	41.27		$	44.27
Average equivalent Class A shares outstanding			1,438,022			1,442,785			1,437,720			1,448,880
Average equivalent Class B shares outstanding			2,157,034,121			2,164,177,636			2,156,580,296			2,173,319,709
Note: Per share amounts for the Class B shares are 1/1,500th of those shown for the Class A.

Generally Accepted Accounting Principles (“GAAP”) require that we include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our earnings statements. In the table above, investment gains/losses in 2024 include after-tax gains of $2.1 billion in the fourth quarter and after-tax losses of $38.1 billion in the full year and in 2023 include after-tax gains of $29.5 billion in the fourth quarter and $53.0 billion in the full year due to changes during the fourth quarter and the full year in the unrealized gains that existed in our equity security investment holdings. Investment gains/losses in 2024 include after-tax realized gains of $3.1 billion in the fourth quarter and $79.6 billion for the full year and in 2023 include after-tax realized losses on sales of investments of $330 million in the fourth quarter and after-tax realized gains of $3.6 billion in the full year. In 2023 investment gains also include a net remeasurement gain of approximately $2.4 billion related to Berkshire’s acquisition of an additional 41.4% interest in Pilot Travel Centers.

The amount of investment gains/losses in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules.

An analysis of Berkshire’s operating earnings follows (dollar amounts are in millions).

	Fourth Quarter							Full Year
		2024			2023				2024			2023
Insurance-underwriting	$	3,409		$	848			$	9,020		$	5,428
Insurance-investment income		4,088			2,759				13,670			9,567
BNSF		1,278			1,355				5,031			5,087
Berkshire Hathaway Energy Company		729			632				3,730			2,331
Other controlled businesses		3,262			3,270				13,072			13,362
Non-controlled businesses		695			421				1,519			1,750
Other*		1,066			(804	)			1,395			(175	)
Operating earnings	$	14,527		$	8,481			$	47,437		$	37,350
* Includes foreign currency exchange gains related to non-U.S. Dollar denominated debt of approximately $1.2 billion in the fourth quarter and $1.1 billion in the full year 2024 and in 2023 includes foreign currency exchange losses of approximately $684 million in the fourth quarter and gains of approximately $211 million in the full year.

Berkshire used approximately $2.9 billion to repurchase Berkshire shares during 2024. On December 31, 2024 there were 1,438,223 Class A equivalent shares outstanding. At December 31, 2024, insurance float (the net liabilities we assume under insurance contracts) was approximately $171 billion, an increase of $2 billion since yearend 2023.

Use of Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures. The reconciliations of such measures to the most comparable GAAP figures in accordance with Regulation G are included herein.

Berkshire presents its results in the way it believes will be most meaningful and useful, as well as most transparent, to the investing public and others who use Berkshire’s financial information. That presentation includes the use of certain non-GAAP financial measures. In addition to the GAAP presentations of net earnings, Berkshire shows operating earnings defined as net earnings exclusive of investment gains/losses.

Although the investment of insurance and reinsurance premiums to generate investment income and investment gains or losses is an integral part of Berkshire’s operations, the generation of investment gains or losses is independent of the insurance underwriting process. Moreover, as previously described, under applicable GAAP accounting requirements, we are required to include the changes in unrealized gains/losses of our equity security investments as a component of investment gains/losses in our periodic earnings statements. In sum, investment gains/losses for any particular period are not indicative of quarterly business performance.

About Berkshire

Berkshire Hathaway and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, services and retailing. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.

Cautionary Statement

Certain statements contained in this press release are “forward looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guaranties of future performance and actual results may differ materially from those forecasted.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250222845036/en/

Marc D. Hamburg

402-346-1400

Source: Berkshire Hathaway Inc.

FAQ

What was Berkshire Hathaway's (BRK) insurance float value at the end of 2024?

Berkshire Hathaway's insurance float was approximately $171 billion at the end of 2024, representing an increase of $2 billion from year-end 2023.

How much did Berkshire Hathaway (BRK) spend on share repurchases in 2024?

Berkshire Hathaway spent approximately $2.9 billion on share repurchases during 2024.

What were Berkshire Hathaway's (BRK) investment gains/losses for Q4 2024?

In Q4 2024, Berkshire reported after-tax gains of $2.1 billion and realized gains of $3.1 billion.

How did Berkshire Hathaway's (BRK) full-year 2024 investment performance compare to 2023?

Berkshire reported after-tax losses of $38.1 billion for full-year 2024, compared to after-tax gains of $53.0 billion in 2023.

How many Class A equivalent shares did Berkshire Hathaway (BRK) have outstanding at the end of 2024?

As of December 31, 2024, Berkshire Hathaway had 1,438,223 Class A equivalent shares outstanding.