Warren Buffett’s Berkshire Hathaway outperformed the S&P 500 in 2024 and had its best year since 2021. Class A shares gained 25.5% last year, outpacing the S&P 500’s 23.3% return. Berkshire’s stock price exceeded US$700,000 during the year, rising for the ninth consecutive year. BRK.A 1Y mountain Berkshire Hathaway The company’s strong performance remains despite the “Oracle of Omaha” halting Berkshire’s stock buyback program as the stock price became increasingly expensive. Instead, the group is relying on solid operating income this year, supported by strong investment income and underwriting income from auto insurer Geico. $325 billion Cash interest and other investment income reached $8 billion in the first three quarters of 2024, compared with $4.2 billion the year before. One important factor is Berkshire’s massive war chest – about $325 billion as of the end of September, nearly double the $168 billion level at the end of 2023. Able to obtain competitive returns. The 94-year-old legendary investor surprised many by amassing an eye-popping amount of cash in 2024 by selling off two of his largest companies – Apple and Bank of America. He spent much of 2024 in a selling mood, selling $133 billion worth of stocks in the first three quarters of the year. The crown jewel of Berkshire Hathaway Insurance, Geico, which Buffett calls his “favorite child”, won and will continue to turn a profit in 2024. The $2.3 billion total is more than double the same period in 2023. Telematics software programs allow insurance companies to collect customers’ driving data, including mileage and speed, to help set policy pricing. Geico helped offset weakness in Berkshire’s other insurance businesses, including Berkshire Hathaway Junior Group and Berkshire Hathaway Reinsurance Group, both of which experienced underwriting losses in the third quarter of 2024 . He noted that it would be difficult to make progress on any investment because Berkshire is using so much cash. Buffett said Berkshire Hathaway’s diversified, high-quality conglomerates – from BNSF Railroad to See’s Candy – should do “slightly better” than the average for U.S. companies, but it’s unlikely to be anything more than that. big. Buffett said in his 2023 annual letter, “Based on our current business portfolio, Berkshire should do better than the average U.S. company, and more importantly, the risk of permanent loss of capital in operations should also be significantly reduced. ” Still, Buffett’s long-term track record is unmatched, spanning 40 industries and 60 companies, with Berkshire Hathaway’s average annual return being twice that of the S&P 500 since Buffett first took the reins. In the 1960s.
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