Warren Buffett’s Berkshire Hathaway Amasses $334 Bln Cash Pile, Pays Most US Corporate Taxes In 2024

Billionaire Warren Buffett's company, Berkshire Hathaway, reported a record-breaking cash reserve of $334.2 billion for the year 2024, marking the 10th straight quarter of rising cash reserves.

The company had an exceptional year, with operating profits growing 27 per cent to $47.44 billion, compared to $37.35 billion in 2023. The strong performance was primarily driven by higher profits from insurance underwriting and investment income.

Berkshire's net income for the fourth quarter reached $19.69 billion, boosted by its investments in Apple, American Express, and other stocks. For the full year, the company recorded $89 billion in net income, with total revenue rising to $371.43 billion from $364.48 billion in the previous year.

Record Tax Payments

In his annual letter to shareholders on February 22, 2025, Buffett revealed that Berkshire Hathaway paid $26.8 billion in corporate taxes to the U.S. government in 2024-more than any other company. This represented about 5 per cent of all corporate tax revenue collected in the country.

"If Berkshire had sent the Treasury a $1 million check every 20 minutes throughout all of 2024 - visualize 366 days and nights because 2024 was a leap year - we still would have owed the federal government a significant sum at yearend," Buffett noted.

"Indeed, it would be well into January before the Treasury would tell us that we could take a short breather, get some sleep, and prepare for our 2025 tax payments," he added.

Berkshire's Rise in Value

Buffett first bought Berkshire stock for $7.60 per share in 1962. Today, it is one of the most expensive stocks in the world, thanks to his remarkable leadership and decision not to split the stock.

Looking Ahead: Investing In Stocks, Not Bonds

Buffett emphasized that Berkshire's $334.2 billion in cash will be invested in stocks rather than bonds, reaffirming his confidence in equities over fixed-income investments.

He also praised Greg Abel, the man set to succeed him as CEO, saying that Abel is fully prepared to lead and seize investment opportunities when the time is right.

Mistakes & Lessons Learned

Buffett admitted that he has made mistakes over the years, particularly in assessing the abilities and trustworthiness of some managers.

"The fidelity disappointments can hurt beyond their financial impact, a pain that can approach that of a failed marriage," said the Berkshire CEO.

He also acknowledged that before he took over in 1965, Berkshire paid no income tax for a decade, which he now sees as a sign that it was not a great investment at the time. But over the years, as the company grew, so did its tax payments-hitting $26.8 billion in 2024.

A Message To The Trump. Government

Buffett generally avoided discussing political topics in his letter but in the latest one he urged the government to spend tax revenues wisely.

"Thank you, Uncle Sam. Someday your nieces and nephews at Berkshire hope to send you even larger payments than we did in 2024. Spend it wisely. Take care of the many who, for no fault of their own, get the short straws in life. They deserve better. And never forget that we need you to maintain a stable currency and that result requires both wisdom and vigilance on your part," Buffett wrote.