On February 24, Berkshire Hathaway's shares reached a record high following the conglomerate's announcement of its highest quarterly profit ever. The company, overseen by Warren Buffett, saw a significant increase driven by improvements in its insurance sector.
The Class A shares of the conglomerate closed up 4% at $747,485.49 after reaching a peak of $755,968 earlier in the day, surpassing previous records. Meanwhile, the more commonly traded Class B shares closed 4.1% higher at $498.42, pushing Berkshire's market value to $1.08 trillion, with Buffett's personal fortune rising to $155.5 billion.
Recent financial reports showed a 71% increase in fourth-quarter profit to $14.53 billion, exceeding expectations. Full-year operating profit also reached a record high of $47.44 billion, partly due to increased income from investments in U.S. Treasury bills as cash reserves doubled. Berkshire's net income for the year totaled $89 billion, including gains and losses from stocks.
Geico, under the leadership of CEO Todd Combs, significantly improved its underwriting profitability, despite cutting over 2,300 jobs in 2024 and 7,700 in 2023. Analysts like UBS's Brian Meredith and KBW's Meyer Shields have raised their outlooks for Berkshire due to Geico's turnaround.
Buffett, acknowledging Berkshire's success, mentioned a potential successor, Greg Abel, age 62, as a future CEO. The conglomerate's wide-ranging operations span railroad, energy, industrial, retail, and service sectors.
At 94, Buffett has led Berkshire since 1965 and hinted in his letter that a leadership transition is on the horizon, highlighting Abel as a prominent figure in the company's future plans.