Berkshire Hathaway: Navigating Investment Gains and Losses in 2024 and 2023

Berkshire Hathaway, the multinational conglomerate led by renowned investor Warren Buffett, has reported its operating results for the second quarter and first six months of 2024 and 2023. This article delves into the key aspects of Berkshire Hathaway's investment gains and losses, the role of its subsidiaries, and the impact of acquisitions on its operating earnings.


Berkshire Hathaway's investment gains and losses have significantly contributed to its operating earnings. In 2024, the company reported investment gains of $18.75 billion in the second quarter and $20.23 billion in the first six months. These gains were primarily driven by realized gains on sales of investments, totaling $47.0 billion in the second quarter and $58.2 billion in the first six months. However, the company also incurred losses of $28.2 billion in the second quarter and $37.9 billion in the first six months due to changes in unrealized gains in its equity security investment holdings.

In 2023, Berkshire Hathaway reported investment gains of $25.87 billion in the second quarter and $53.31 billion in the first six months. These gains were primarily a result of realized gains on sales of investments, totaling $1.6 billion in the second quarter and $3.3 billion in the first six months. Additionally, the company experienced gains of $24.2 billion in the second quarter and $47.6 billion in the first six months due to changes in unrealized gains in its equity security investment holdings. Notably, the first six months of 2023 also included a net remeasurement gain of approximately $2.4 billion related to Berkshire's acquisition of an additional 41.4% interest in Pilot Travel Centers.


Berkshire Hathaway's subsidiaries have played a significant role in driving operating earnings in the past two years. The company's diverse portfolio includes businesses such as Geico, Duracell, Dairy Queen, Fruit of the Loom, and BNSF. These subsidiaries contribute to the company's overall earnings and provide a stable foundation for its growth.

Changes in unrealized gains or losses in equity security investments have impacted Berkshire Hathaway's operating earnings in 2024 and 2023. The company's investment portfolio is subject to market fluctuations, which can result in gains or losses. These changes are reflected in the company's operating earnings, as required by Generally Accepted Accounting Principles (GAAP).

Berkshire Hathaway's acquisition of an additional 41.4% interest in Pilot Travel Centers in the first six months of 2023 had a significant impact on its operating earnings. The net remeasurement gain of approximately $2.4 billion related to this acquisition contributed to the company's overall investment gains for the period.

In conclusion, Berkshire Hathaway's investment gains and losses, the role of its subsidiaries, and the impact of acquisitions have all played a crucial role in shaping the company's operating earnings in the past two years. As the company continues to navigate the dynamic investment landscape, its ability to adapt and capitalize on opportunities will be key to its ongoing success.