Key Takeaways from Warren Buffett’s 2024 letter 

Buffett highlights Berkshire’s performance, liquidity strategy, and growth in Japan.

Warren Buffett’s highly anticipated annual letter is here, and as always, there’s plenty to analyze. In 2024, Berkshire Hathaway reported an operating profit of US$47 billion, a 27% increase despite more than half of its businesses experiencing a decline in earnings. 

• Liquidity Strategy: Berkshire ended the year with US$334 billion in cash. Despite speculation, Buffett reaffirmed that his focus remains on stock investments. 
  
• Beyond the U.S.: Berkshire continues to expand its presence in Japan, with investments in five major conglomerates. 
  
• Insurance Sector on the Rise: Operating profits in insurance grew 66% year-over-year, solidifying this business as the cornerstone of the firm. 

Buffett expressed optimism about the future of American businesses. While he didn’t directly address his retirement, he acknowledged that Greg Abel’s leadership transition is approaching. 

Top 10 holdings in Berkshire Hathaway’s investment portfolio 

*Figures as of December 31, 2024 – Cash position: US$334 billion.  

Source: CNBC