Berkshire Hathaway (NYSE: BRK.A) soared to an all-time high on Monday, surging 4.3% to $749,611, after Warren Buffett’s conglomerate reported its highest-ever quarterly profit. The stock rally pushed Berkshire’s market value to $1.08 trillion, while Buffett’s personal net worth crossed $155 billion, according to Forbes.
Record-Breaking Earnings Drive Stock Surge
Berkshire reported a 71% surge in Q4 operating profit, reaching $14.53 billion, exceeding analyst forecasts. Full-year operating profit rose 27% to $47.44 billion, driven by strong insurance operations and rising investment income from $334.2 billion in cash and U.S. Treasury holdings.
Geico’s Turnaround Fuels Growth
📈 Geico’s underwriting profit more than doubled in 2024, despite cutting over 2,300 jobs after reducing its workforce by 7,700 in 2023.
📈 CEO Todd Combs was praised in Buffett’s annual shareholder letter for improving the insurer’s efficiency while maintaining profitability.
📈 UBS analyst Brian Meredith said Geico has “firmly turned the corner”, while KBW analyst Meyer Shields and Edward Jones analyst James Shanahan raised their 2025 forecasts for Berkshire.
Buffett’s Legacy and Future Leadership
📌 Buffett, now 94, reaffirmed that Greg Abel, 62, will take over as CEO when the time comes.
📌 Berkshire’s tax contribution totaled $26.8 billion in 2023, prompting Buffett to caution Washington to spend it wisely.
📌 Berkshire continues to hold a diverse portfolio, spanning railroad, energy, industrial, retail, and service businesses.
Stock Momentum and Market Outlook
With Berkshire Hathaway’s Class A shares breaking records, investors are closely watching the company’s cash reserves, investment strategy, and continued success in the insurance sector. The recent reduction in Apple (NASDAQ: AAPL) holdings and strength in Treasury investments highlight Buffett’s defensive strategy amid market uncertainties.
