Buffett’s Berkshire Hathaway Soars 2024 Value Up 25.5% 60-Year Gain Hits 55000x!

Omaha, Nebraska – Warren Buffett, the legendary investor and chairman and CEO of Berkshire Hathaway, has released his annual letter to shareholders, accompanied by the company’s 2024 financial results. The report reveals a robust performance, with Berkshire Hathaway’s per-share market value increasing by 25.5% in 2024, outpacing the S&P 500’s 25% gain. Over the long term, from 1965 to 2024, Berkshire’s per-share market value has compounded at an impressive annual rate of 19.9%, significantly exceeding the S&P 500’s 10.4%.

Key Financial Highlights of 2024:

Revenue: $371.433 billion (approximately 2.69 trillion RMB), slightly below market expectations of $371.953 billion.
Net Profit: $88.995 billion (approximately 645.673 billion RMB), surpassing market expectations of $60.706 billion.
Fourth-Quarter Operating Profit: $14.53 billion, a substantial increase from $8.48 billion in the same period last year.

Berkshire’s Investment Strategy Remains Focused on Long-Term Value:

The report highlights that as of December 31, 2024, 71% of Berkshire Hathaway’s total equity investments were concentrated in American Express, Apple, Bank of America, Chevron, and Coca-Cola. This demonstrates Buffett’s continued conviction in established, high-quality companies.

In his annual letter, the 94-year-old Buffett addressed the shift in Berkshire’s portfolio, noting that the value of its marketable stock holdings decreased from $354 billion to $272 billion. However, he emphasized that the value of Berkshire’s non-publicly traded, controlled equity holdings has increased and remains significantly higher than the value of its marketable stock portfolio.

Buffett reaffirmed his commitment to investing in equities, particularly American stocks, despite the international operations of many of these companies. We will forever allocate the overwhelming portion of our money to equities – and, for us, that means equities whose home is the U.S., Buffett stated in his letter. He further emphasized that Berkshire would never favor holding cash equivalents over owning quality businesses, whether through controlling stakes or partial ownership.

A Legacy of Extraordinary Growth:

The numbers speak for themselves. From 1964 to 2024, Berkshire Hathaway’s market value has increased by a staggering 5,502,284%, or 55,022 times, while the S&P 500 has grown by 39,054%, or 390 times. This remarkable performance underscores Buffett’s unparalleled investment acumen and long-term investment philosophy.

Looking Ahead:

Buffett’s annual letter serves as a valuable resource for investors worldwide, offering insights into his investment strategies and his perspective on the global economy. As Berkshire Hathaway continues to navigate the ever-changing financial landscape, its commitment to value investing and long-term growth remains unwavering. The company’s 2024 results and Buffett’s insights provide a compelling case study for investors seeking to build sustainable wealth over the long term.

References: