Warren Buffett’s company achieved record profits

The financial statements of the company said the operating profit in the fourth quarter of 2024 was at 14.53 billion USD, up 71% over the same period of 2023, marking a new record for the fourth quarter. In 2024, operating profits reached 47.44 billion USD, the highest ever and the third consecutive year the group broke the record.

Positive results thanks to improved insurance segment and investment income increased sharply. The 94 -year -old billionaire evaluated the Group “did better than expected” despite 53% of the 189 subsidiaries recorded a decrease in profit. According to him, profit increased in part thanks to the higher interest rate of American treasury bonds and improved results from Geico car insurance company.

Geico benefits thanks to better price adjustment, tightening the risk appraisal process and loss rate due to decreasing accidents. Under the guidance of CEO Todd Combs, Geico has “strongly restructured” through cutting more than 2,300 personnel last year, bringing the total number of workers cut to about 10,000 people (equivalent to 26% of the labor force). From the end of 2022.

Geico’s profit before tax increased by 29% in the fourth quarter and more than doubled in 2024 when the compensation payment rate on the premium decreased from 81% in 2023 to 71.8%. However, Berkshire predicted that the loss of US $ 1.3 billion due to forest fires in Los Angeles area in January.

Thomas Russo, an expert at Gardner Russo & Quinn, the company owns Berkshire shares since the 1980s, saying the results showed the true power of Berkshire’s insurance and investment activities “. Incredibly, “he commented.

In addition, most of the profit comes from the huge amount of cash of Berkshire, reaching a record of 334.2 billion USD at the end of 2024, double the previous year. In the letter to the Annual Shareholder, Warren Buffett confirmed that he still prioritizes investing in businesses rather than keeping cash.

In 2024, Berkshire sold a total of 143.4 billion USD of stocks, including 62% of the shares in Apple and one -third of the stake in Bank of America. This is the 9th consecutive quarter of the group net selling shares.

On the contrary, they only spend $ 2.9 billion to acquire treasury stocks in 2024 and have not made any transactions since May. Mr. Buffett said the group “is very rare” to find steaming investment opportunities. guide.

Another bright spot is the annual profit of Berkshire Hathaway Energy increased by more than 50% thanks to improved profit margin and reduced provision for lawsuits related to forest fires in Oregon and California by 2020. At the end of 2024, Berkshire Spending $ 3.9 billion to acquire 8% of the remaining shares at Berkshire Hathaway Energy, thereby owning the entire company.

But some areas are difficult. BNSF railway interest has decreased by 1% in the past year. The retail and weak service segment due to profit margin at the Pilot stop chain and the automotive agent system narrow. Clayton Home, specializing in mobile houses, reduces profits due to increased insurance costs and forecast losses from loans.