Berkshire Hathaway Annual Letter to Shareholders 2024

Warren Buffett argued in his 2024 annual letter that Berkshire will always prefer owning good businesses over cash equivalents, warning that "paper money can see its value evaporate if fiscal folly prevails" and that fixed-coupon bonds offer no protection against runaway currency. He framed equities — mostly American — as the only reliable long-term store of value for savers, and said that preference will not change regardless of Berkshire's current cash position. Buffett highlighted GEICO's turnaround under Todd Combs as the standout operational story of 2024, calling the improvement "spectacular" after five years of restructuring. He also detailed Berkshire's growing Japanese investments in five trading houses — ITOCHU, Marubeni, Mitsubishi, Mitsui, and Sumitomo — where aggregate cost reached $13.8 billion against a market value of $23.5 billion at year-end. He increased Berkshire's ownership of its utility operation to 100% at a cost of roughly $3.9 billion. Berkshire recorded $47.4 billion in operating earnings in 2024, up from $37.4 billion in 2023, driven by insurance underwriting gains and higher investment income from Treasury Bills. The company paid $26.8 billion in federal income taxes — approximately 5% of all U.S. corporate tax receipts — while its partial-ownership equity portfolio stood at $272 billion at year-end. Buffett noted that 53% of Berkshire's 189 operating businesses reported a decline in earnings.