Berkshire Hathaway's operating earnings increase by 28% in the fourth quarter, and its cash pile reaches a new record.

• In the fourth quarter, Berkshire Hathaway reported operating earnings of $8.481 billion, encompassing profits from various businesses in insurance, railroads, and utilities.
• In 2023, operating earnings increased by 17% from the previous year, reaching a total of $37.350 billion.
• In the fourth quarter, Berkshire had a record $167.6 billion in cash, which exceeded the $157.2 billion it held in the previous quarter.

The insurance business of the company reported huge gains, leading to a significant increase in operating earnings in the fourth quarter. Additionally, the company's cash pile reached record levels.

The conglomerate based in Omaha reported operating earnings of $8.481 billion in the quarter ending December, which is 28% higher than the $6.625 billion earned in the previous year.

In 2023, the company's operating earnings increased by 17% to $37.350 billion from $30.853 billion in the previous year.

In the fourth quarter, Berkshire's cash holdings reached a record level of $167.6 billion, exceeding the $157.2 billion it held in the previous quarter.

Berkshire Class A shares have rallied roughly 16% this year.

In 2023, Geico, Buffett's "favorite child" auto insurer, reported a profitable year with net underwriting earnings of $5.428 billion. The improved earnings were due to premium rate increases and lower claims.

Last year, BNSF reported a 14% decrease in full-year net earnings, from $5.946 billion to $5.087 billion.

The conglomerate's operating earnings surged to $848 million in the fourth quarter, up 430% from $160 million in the previous year, thanks to the surge in insurance underwriting to $848 million from $160 million.

The quarterly insurance investment income increased by 37% to $2.759 billion from $2.0 billion in the previous year.

In the fourth quarter, railroads, utilities, and energy experienced a decline in operating earnings. Railroads' operating earnings dropped to $1.355 billion, while utilities and energy's operating earnings fell to $632 million, both down from the previous year.

Berkshire's earnings, including profits from publicly traded companies, more than doubled in the quarter compared to the previous year, reaching $37.57 billion. For the year, overall profits totaled $96.22 billion.

Despite fluctuations in quarterly results, the conglomerate advised investors to look past them.

The statement in the annual report reads, "We believe that gains and losses on investments in equity securities, whether realized or unrealized, are generally meaningless in assessing our reported periodic results or evaluating the economic performance of our operating businesses."