Famed investor Warren Buffett still has it.
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Buffett, age 94, saw his holding company Berkshire Hathaway beat the benchmark S&P 500 index during 2024 and post its best annual performance since 2021. The Class A shares of the Nebraska-based conglomerate increased 25.5% last year, narrowly beating the S&P 500′s 23.3% gain. Berkshire’s Class A stock posted its ninth consecutive year of positive returns in 2024.
The strong performance was largely driven by Berkshire Hathaway’s solid operating earnings and hefty investment income. The company also benefitted from strong underwriting earnings in its insurance unit, notably from insurer Geico.
An Eventful Year
The year 2024 was an eventful one for Berkshire Hathaway. The company scaled back its stock buyback program as its share price rose, and raised a mindboggling $325 billion of cash by selling down two of its biggest stock positions, in Apple (AAPL) and Bank of America (BAC).
At the same time, Berkshire added to its existing holding of Occidental Petroleum (OXY) as the share price fell and opened new positions in stocks such as Domino’s Pizza (DPZ) and legacy internet domain registry VeriSign (VRSN).
Despite beating the benchmark S&P 500 last year, Buffett has tempered expectations for the future performance of Berkshire Hathaway, saying the company’s size is likely to make future gains difficult. Still, Berkshire has doubled the average annual return of the S&P 500 since Buffett took control of the company in the 1960s.
Is Berkshire Hathaway Stock a Buy?
The Class A stock of Berkshire Hathaway has a consensus Moderate Buy rating among one Wall Street analyst who rates the shares a Buy. The price target on BRK.A stock of $796,021 implies 17.84% upside from current levels.
