Berkshire Hathaway Share Price 2024: Berkshire Hathaway just announced its second consecutive annual operating profit record, hitting a whopping $8.48 billion in the fourth quarter alone.
This success is largely attributed to improvements in its insurance sector, where smarter underwriting and increased investment income from rising interest rates played a key role.
The company’s net income reached an all-time high of $96.2 billion, thanks to the soaring stock market, especially with its $354 billion equity portfolio, half of which is invested in Apple.
Warren Buffett, the legendary investor, and Berkshire’s chairman, mentioned in his yearly letter to shareholders that the insurance segment,
including Geico, performed exceptionally well. Geico’s strategic move to write fewer risky policies and trim advertising costs turned the tide, even reversing previous losses.
Berkshire Hathaway share price 2024 Fourth Quarter Results
Under the leadership of Warren Buffett, Berkshire Hathaway showcased a remarkable 28% increase in operating earnings for the fourth quarter, primarily fueled by the stellar performance of its insurance business.
Operating earnings surged to $8.48 billion, demonstrating the conglomerate’s resilience and strategic prowess.
Berkshire Hathaway Share Price Today
As of February 25, 2024, the share price of Berkshire Hathaway (BRK.B) is USD 417.22. This reflects a positive change of +2.06 (0.50%) for the day. For the latest update watch here.
Record-Breaking Cash Reserve and Geico’s Success
The conglomerate achieved a significant milestone by setting a new record for its cash reserve, reaching an impressive $167.6 billion in the fourth quarter.
Notably, Berkshire’s Class A shares experienced a notable 16% increase in the year. Geico often hailed as Buffett’s “favorite child” in the insurance sector,
reported a profitable year with net underwriting earnings of $5.43 billion in 2023, driven by a combination of premium rate increases and a reduction in claims.
Berkshire Hathaway Share Price 2024 Sector Challenges
Despite challenges faced by the BNSF railroad and the utilities and energy sectors, including a 14% drop in BNSF net earnings,
Berkshire’s overall earnings, including investment gains, more than doubled in the quarter to a staggering $37.57 billion.
The full-year earnings for 2023 reached an impressive $96.22 billion, reflecting the conglomerate’s ability to navigate diverse market conditions.
Berkshire Hathaway Share Price 2024 Performance
Berkshire’s diverse portfolio, featuring well-known businesses such as Dairy Queen, Fruit of the Loom, and See’s candies, played a pivotal role in the conglomerate’s outperformance in the market.
In 2024, Berkshire’s stock rose by an impressive 16%, surpassing the Standard & Poor’s 500’s gain of 7%, showcasing the strength and resilience of the conglomerate’s strategic investments.
Berkshire Hathaway Share Price 2024 Target
The forecast for Berkshire Hathaway Inc Stock (BRK.A) in 2024 presents a mix of opinions.
Analysts predict an average price of $566,415.35, with a high estimate of $606,507.36 and a low estimate of $526,323.34. This suggests a potential -4.35% decrease from the current price of $628,930.18.
ALSO READ: Mic Electronic Limited Share Price Target 2024, 2025.
Berkshire Hathaway Stock Future
Many analysts are forecasting a bit of a dip for Berkshire Hathaway Inc (BRK.A) in the next year.
The average target price is $581,037.66, suggesting about a 7.61% decrease from its current value of $628,930.18. Analysts have set a high target of $619,498.49 and a low of $542,576.83.
However, when we look at technical indicators, things seem a bit more optimistic. The current sentiment is bullish, and some indicators suggest that BRK.
It could even reach $637,028.02 by 2025. This might present a good opportunity for those considering new investments, especially since navigating positive market trends is generally seen as easier.
Conclusion:
Berkshire Hathaway reported impressive fourth-quarter results, achieving record operating earnings of $8.48 billion and a net income of $96.2 billion.
The success is attributed to a strong insurance sector and a soaring stock market. Despite challenges in some sectors, Berkshire’s resilience led to a 16% stock rise in 2024, outperforming the market.
Analysts offer mixed opinions on the future stock price, but technical indicators suggest a potential positive trend, making it an interesting prospect for investors.
