Berkshire Hathaway's Q4 Profits Surge 71%, Buffett Highlights Tax Payments

Berkshire Hathaway, the multinational conglomerate led by legendary investor Warren Buffett, reported a massive surge in fourth-quarter earnings, driven in large part by its insurance business. The company's operating profit skyrocketed 71% to $14.527 billion during the final three months of 2024, led by a whopping 302% jump in insurance underwriting and a nearly 50% increase in insurance investment income. This impressive performance contributed to a 27% increase in full-year operating earnings, which came in at $47.437 billion.



Warren Buffett, the chairman and CEO of Berkshire Hathaway, attributed the company's strong performance to a predictable large gain in investment income as Treasury Bill yields improved, as well as the substantial increase in holdings of these highly liquid short-term securities. Additionally, the insurance business delivered a major increase in earnings, led by the performance of GEICO.



Buffett also took the opportunity to highlight the company's significant tax payments, noting that Berkshire Hathaway paid $26.8 billion in taxes to the U.S. government in 2024. This amount represented 5% of all taxes paid by corporate America and was more than any other company had ever paid to the U.S. government, including American tech titans with market values in the trillion. Buffett emphasized that Berkshire Hathaway paid far more in corporate income tax than any other company, even the American tech titans that commanded market values in the trillion.



Buffett's comments on taxes come at a time when the U.S. government is grappling with a rising deficit and the need to bridge the gap between federal tax receipts and spending. In December 2024, ahead of the Donald Trump administration taking over the White House, Buffett predicted that taxes would rise in America to address the rising deficit. His comments on taxes and corporate responsibility reflect his long-standing belief in the importance of paying one's fair share and contributing to the broader economy.



In conclusion, Berkshire Hathaway's Q4 profits surged 71%, driven by strong performance in its insurance business and investment income. Warren Buffett highlighted the company's significant tax payments, emphasizing that Berkshire Hathaway paid far more in corporate income tax than any other company, including American tech titans with market values in the trillion. Buffett's comments on taxes and corporate responsibility reflect his commitment to paying one's fair share and contributing to the broader economy.