Berkshire Hathaway's 2024 Revenue Surges 2% Amid Market Volatility

On May 3, 2025, the annual shareholders' meeting of Berkshire Hathaway, often referred to as the "investment industry's Spring Festival," is set to take place in Omaha, Nebraska. This year marks the 60th anniversary of Warren Buffett's acquisition of Berkshire Hathaway. The 94-year-old "Oracle of Omaha" will join his successor Greg Abel and insurance business head Ajit Jain to answer questions from shareholders.

In February, Berkshire Hathaway released its 2024 annual report, revealing a full-year revenue of $3714.33 billion, surpassing the previous year's $3644.82 billion. However, the net profit for the year was $889.95 billion, lower than the previous year's $962.23 billion. By the end of last year, Berkshire Hathaway's cash reserves reached a historic high of $3342 billion. A key focus of this year's shareholders' meeting will be how Buffett plans to utilize this massive cash reserve, as well as his recent divestments from Apple and other stocks. Additionally, investors are eager to hear Buffett's views on U.S. tariff policies and artificial intelligence.

Throughout 2024, Berkshire Hathaway made several significant divestments, including reducing its holdings in Apple and other companies. Concurrently, the company issued 900 billion yen in bonds and increased its stake in Japan's five major trading companies, boosting the market value of its holdings from $138 billion to $235 billion. Buffett's strategic moves have allowed Berkshire Hathaway to outperform the market, with its stock price showing resilience despite broader market volatility. This has positioned Buffett as the only billionaire to see an increase in net worth this year.

Buffett's investment strategy has historically involved reducing holdings in overvalued stocks and buying during market downturns. His recent divestments from Apple and other stocks are seen as a precautionary measure against potential market bubbles. According to financial analysts, Buffett's past five instances of significant divestments from the U.S. market have been followed by substantial market corrections within six months. This year, the U.S. market has already experienced significant declines, aligning with Buffett's predictive pattern.

As of December 31, 2024, 71% of Berkshire Hathaway's equity investments were concentrated in American Express, Apple, Bank of America, Chevron, and Coca-Cola. While Buffett has increased his investments in Japan's five major trading companies, his core investment principles remain focused on the U.S. market. Analysts suggest that given the current global economic climate, Buffett is unlikely to make significant investments outside the U.S.

Regarding the use of his substantial cash reserves, Buffett has several options. He could repurchase Berkshire Hathaway shares, which have outperformed the S&P 500 but have recently experienced volatility. Alternatively, he could invest in the secondary market, targeting companies with strong competitive moats, such as NVIDIA. Another possibility is to allocate capital to Berkshire Hathaway's extensive energy and manufacturing sectors, including investments in renewable energy.

Berkshire Hathaway's insurance business continues to be a significant cash generator. In his 2025 letter to shareholders, Buffett highlighted the substantial growth in the company's insurance profits, with GEICO, the fourth-largest auto insurer in the U.S., showing particularly strong performance. Over the past five years, GEICO has undergone major reforms under CEO Todd Combs, improving efficiency and updating underwriting standards. Buffett noted that over the past 20 years, Berkshire Hathaway's insurance business has generated $32 billion in after-tax profits from underwriting, amounting to approximately 3.3 cents per dollar of sales. The company's float, or the amount of premiums collected but not yet paid out in claims, has grown from $46 billion to $171 billion. This float is expected to grow slightly over time and could potentially be managed at zero cost through prudent underwriting.

At this year's shareholders' meeting, Buffett will be joined by his successor Greg Abel and insurance business head Ajit Jain. In his letter to shareholders, Buffett indicated that Abel will soon take over as CEO. The transition of leadership has raised questions about the long-term performance of Berkshire Hathaway. While Abel's background in energy suggests a potential shift towards more industrial investments, the individual nature of investment decisions means that the company's strategy may evolve under his leadership.

The global financial market and economy are currently under pressure from increased U.S. tariffs. Buffett, who has a substantial cash reserve, will need to adjust his investment strategy accordingly. Analysts suggest that the ongoing trade war could further impact Buffett's investments in the U.S. market, as he may be cautious about the continued effects of tariffs on stock prices. Buffett has historically opposed tariffs, arguing that they negatively impact global trade and the economy, ultimately affecting many companies, including those in the U.S. market.

Another key topic at this year's shareholders' meeting will be artificial intelligence. Last year, Buffett expressed concerns about the development of AI, stating that while he lacks expertise in the field, he recognizes its importance. He noted that the advancement of AI, particularly generative AI, could have significant implications, including the potential for misinformation. The emergence of DeepSeek, a Chinese AI company, has challenged the dominance of U.S. firms in the AI sector, highlighting the potential for innovation in this area. Investors are eager to hear Buffett's insights on AI and its potential impact on the investment landscape.