Berkshire shares rise on surge in operating earnings, but questions linger about cash
Published On Feb 24, 2025, 8:48 AM
Berkshire Hathaway's shares rose 1.2% following a report detailing a significant 71% increase in operating earnings, reaching $14.5 billion for the fourth quarter, largely due to a remarkable 302% increase in insurance underwriting profits. However, the company's investment gains fell significantly from the previous year, and Berkshire continues to accumulate cash, now totaling $334.2 billion. The lack of share buybacks and explanations for the high cash reserves have left some investors anxious, although others see this as a strategic position for future buying opportunities. Berkshire's stock has performed well recently, outpacing the S&P 500.
Stock Forecasts
BRK.B
Positive
Berkshire Hathaway's solid earnings and increased operating profits indicate strong fundamentals, but the rising cash reserves and stagnant equity investments may create uncertainty among investors. The absence of buybacks and the rationale behind the cash position could lead to increased market speculation in the short term. Nonetheless, the company remains a strong player poised to capitalize on future opportunities.
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