Berkshire Hathaway's Q4 Earnings: Hoarding Cash and Taking a Laid-back Approach, Could the Unwillingness to Buy Stocks Backfire?

TradingKey - Berkshire Hathaway (BRK_A) stock didn't react very positively to its excellent 2024Q4 report, because investors are worried that the one-time monetary gains will be difficult to sustain.

⚫ EPS: $ 10,110 in Q4, beating expectations($ 6,930）with a 72.5% YoY increase, operating profit reached $14.53 billion in Q4($9.87 billion expected). The growth was mainly driven by insurance underwriting, whose operating earnings skyrocketed more than 300% to $3.41 billion

⚫ Revenue : $ 94.9 billion in Q4, beating the expected $92.1 billion and slightly up 1.6% YoY, including investment returns which have increased substantially due to the rise in Treasury yields and highly liquid securities. The other wholly-owned subsidiaries such as railways and utilities, profit increased moderately.

Future outlook and conclusion: At the end of Q4, Berkshire holds a cash reserve of 334 billion US dollars, setting a historical record, which accounts for 53% of the company's net assets, marking the ninth consecutive quarter as a net seller of stocks. The Management stated that international trade policies, including tariffs and other trade barriers, may have a negative impact on its operating performance.

Berkshire has vast financial resources, diversified business portfolio, and good reputation, its share remains an attractive option for long-term investors. However, the management's attitude towards equity is very cautious in 2025, as well as the lack of stock repurchases and major investment actions, we believe it will be difficult for the BRK to beat expectations again.