By Jonathan Stempel

(Reuters) – Shares of Berkshire Hathaway (BRK-A, BRK-B) surged to an all-time high on Monday, following the announcement of the company’s highest quarterly profit to date, spurred by advancements in its insurance operations.

During early afternoon trading, Berkshire’s Class A shares experienced a rise of up to 4.3%, reaching $749,611 as reported by NYSE data.

This figure has eclipsed the previous highest price of $741,971, which was noted on June 3 due to a trading error.

The increase in stock value has propelled the conglomerate’s market capitalization to approximately $1.08 trillion, prompting several analysts to uplift their price targets and earnings predictions. Additionally, Warren Buffett’s net worth has surpassed $155 billion, according to Forbes.

On Saturday, Berkshire reported a remarkable 71% increase in fourth-quarter profit from its 189 operating units, totaling $14.53 billion, with adjusted earnings (excluding currency fluctuations) reaching $13.38 billion, surpassing analysts’ expectations.

For the full year, operating profits rose by 27%, amounting to a record $47.44 billion.

This growth was further supported by increased income from a substantial holding of $334.2 billion in cash and equivalents, primarily invested in U.S. Treasury bills.

In 2024, cash holdings doubled as Berkshire scaled back its investment in Apple, which continues to be its largest common stock position.

In his annual letter to shareholders, Buffett expressed satisfaction with Berkshire’s growth, praising Geico Chief Executive Todd Combs for enhancing the insurer’s operations while reducing costs.

Notably, Geico’s underwriting profits more than doubled in 2024, even as the company reduced its workforce by over 2,300 positions, in addition to 7,700 in 2023.

Analysts from UBS and KBW have revised their 2025 forecasts for Berkshire, with UBS’s Brian Meredith noting that Geico “seems to have decisively turned the corner.”

James Shanahan from Edward Jones highlighted the significance of the cash reserve in light of Buffett’s statement that Berkshire paid $26.8 billion, averaging over $3 million per hour, in federal taxes last year. Buffett urged Washington to allocate these funds “wisely.”

Berkshire’s diverse operations encompass sectors including railroads, energy, industrials, retail, and various service businesses.

Buffett, who has overseen Berkshire since 1965, noted in his letter that “at 94, it won’t be long before Greg Abel succeeds me as CEO and will be authoring the annual letters.” Abel, 62, currently serves as vice chairman of Berkshire.

(Reporting by Jonathan Stempel in New York; Editing by David Gregorio)