Berkshire Hathaway’s stock reached an all-time high on Monday after reporting its largest-ever fourth-quarter earnings. Class A shares surged 4%, closing at $747,485.49, after briefly hitting $755,968.
Buffett’s Wealth Jumps by $6 Billion
With the stock’s rise, Warren Buffett’s net worth increased by $6 billion, bringing his total fortune to $155 billion, making him the sixth richest person in the world, according to Forbes. However, he remains $225 billion behind Elon Musk.
Berkshire’s Market Value Crosses $1 Trillion
Berkshire’s stock surpassed its previous record of $741,971, set in June due to a trading error. Its Class B shares rose 4.1%, closing at $498.42, pushing the company’s total valuation to $1.08 trillion. Analysts had already predicted a rise in Berkshire’s stock price and earnings.
Cash Reserves and Earnings Boom
The company’s cash and investments swelled to $334.2 billion, largely due to holdings in U.S. Treasury bills. After reducing its stake in Apple, Berkshire’s cash reserves nearly doubled. The company’s net income, including gains from stock investments, reached $89 billion.
Buffett’s Annual Letter and Leadership Plans
In his annual letter to shareholders, Buffett acknowledged that Berkshire outperformed his expectations. He praised Geico’s CEO, Todd Combs, for improving operations and cutting costs. Despite laying off 2,300 employees in 2024, following 7,700 job cuts in 2023, Geico’s underwriting profit more than doubled.
At 94 years old, Buffett admitted he won’t be CEO for much longer. He hinted that Greg Abel, Berkshire’s 62-year-old vice chairman, may soon take over and start writing the annual letters himself.
