Berkshire Hathaway’s stock surged to an all-time high Monday, as Wall Street digested the company’s fourth-quarter earnings report, which revealed record operating profits. Class A shares of the conglomerate rose 4%, closing at $747,765.75, while Class B shares climbed 4.2% to $498.97—both breaking previous all-time highs set in late November.
The strong gains were driven by impressive earnings figures from Berkshire’s Q4 and full-year performance. Operating earnings (excluding investment gains) for 2024 reached $47.4 billion, a 27% increase from 2023. Q4 alone saw a 71% year-over-year increase in operating earnings, totaling $14.5 billion. This marked one of Berkshire’s best days in months, adding $40 billion to its market capitalization, which soared to a record $1.08 trillion.
This rally propelled Berkshire Hathaway above Tesla, making it the seventh-most valuable public American company, with a market value surpassing $1 trillion.
Buffett’s Wealth Grows by $6 Billion
The stock surge also translated into a significant boost for Berkshire’s legendary CEO, Warren Buffett. As a result of the company’s rally, Buffett’s net worth increased by $6 billion, making him the biggest gainers among billionaires on Forbes’ real-time ranking. With a fortune now at $155 billion, Buffett holds the position of the sixth-wealthiest person globally. However, he’s still approximately $225 billion behind Elon Musk, the world’s wealthiest individual.
A Strong Start to 2025
Year-to-date, Berkshire Hathaway has outperformed the broader market, up 10% compared to the S&P 500’s 2% gain. Over the past 25 years, Berkshire has outperformed the S&P 500 in 16 of those years, reinforcing its status as a top performer in the stock market.
Buffett’s Cash Pile and Investment Strategy
Berkshire Hathaway’s sizable cash reserves, totaling $334 billion by the end of 2024, also buoyed investor confidence. Despite some analysts questioning the size of this cash pile, Buffett reassured shareholders in his 2025 letter, stating that the company will continue to deploy the majority of its funds into equities.
Apple Boosts Berkshire’s Portfolio
A major contributing factor to Berkshire’s strong performance was a rally in shares of Apple, which accounts for around 25% of Berkshire’s public portfolio. Apple’s stock reached a 2025 high following the company’s announcement of a $500 billion investment in the U.S. over the next four years. This further fueled optimism about Berkshire’s holdings.
A Record Tax Payment
In his annual letter, Buffett proudly highlighted that Berkshire had paid a record $26.8 billion in taxes to the U.S. government in 2024, the largest tax bill ever paid by a single company. According to Buffett, this represented 5% of all corporate taxes paid in the country. Buffett expressed gratitude for paying the hefty bill, noting that Berkshire’s success would not have been possible without the United States. “So thank you, Uncle Sam,” he added.
Closing Thoughts
Berkshire Hathaway’s continued strong performance and Warren Buffett’s shrewd investment decisions have solidified the company’s position as a dominant force in the global market. With robust earnings, a massive cash reserve, and continued growth from its top investments like Apple, Berkshire Hathaway is poised to remain a key player in both the stock market and the wider economy.
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