Berkshire Hathaway's stock price rises following substantial earnings increase, bringing the company closer to a $1 trillion valuation.
On Monday, shares of the conglomerate rose after Warren Buffett's company posted strong earnings for the fourth quarter over the weekend.
Berkshire class B shares increased by 2.3% in premarket trading, contributing to their 17% growth this year. Berkshire's market value was $905.5 billion on Friday, as reported by FactSet.
Berkshire Hathaway reported a 28% increase in fourth-quarter operating earnings to $8.481 billion on Saturday, compared to $6.625 billion in the previous year. The increase was primarily due to significant gains in the insurance business. Operating earnings encompass profits from various businesses, including insurance, railroads, and utilities.
In the fourth quarter, Berkshire's cash levels reached a record high of $167.6 billion, surpassing the previous record of $157.2 billion held in the prior quarter.
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