The unusually high levels of **Cash and cash equivalents** in Q2 2023 were driven by a combination of factors. The company experienced **strong operating earnings** in its insurance operations, which generated significant pre-tax underwriting gains. In addition, there was a robust net inflow from its **investment activities**—notably, it received substantial proceeds from sales of equity securities that outweighed the cash outflows from share repurchases and a major acquisition. This strategic emphasis on liquidity management helped maintain a large cash balance despite the substantial outflows for share repurchases and the acquisition of Pilot Travel Centers.  **[0000950170-23-038705_brka-20230630.htm:3]** **[0000950170-23-038705_brka-20230630.htm:69]** **[0000950170-23-038705_brka-20230630.htm:36]** 

Why was Cash and cash equivalents unusually high in Q2 2023?

Berkshire Hathaway’s surge in short-term investments in Q3 2024 was driven by several strategic factors. The company heightened its focus on liquidity and safety by shifting more funds into U.S. Treasury Bills, which are deemed highly liquid and secure.  **[0000950170-24-120241_brka-20240930.htm:51]**  Additionally, proceeds of **$133.2 billion** generated from the sale of equity securities during the first nine months of 2024 provided the necessary capital for this reallocation.  **[0000950170-24-120241_brka-20240930.htm:68]**  Finally, a deliberate shift in investment strategy—reducing allocations in equity and fixed maturity securities—further facilitated the significant increase in Treasury Bill investments.  **[0000950170-24-120241_brka-20240930.htm:3]** **[0000950170-24-120241_brka-20240930.htm:51]** 

What drove the surge in Short-term investments in Q3 2024?

The **jump in Total Assets in Q3 2024** was driven by several factors. Notably, there was a **substantial increase in short-term investments in U.S. Treasury Bills**, growing from **$129,619 million** to **$288,031 million**. Additionally, there was **growth in loans and finance receivables** (rising from **$24,681 million** to **$27,106 million**), an **increase in other receivables** (from **$44,174 million** to **$45,458 million**), **higher cash and cash equivalents in the Railroad, Utilities, and Energy segment** (from **$4,350 million** to **$4,894 million**), and an uptick in the **property, plant, and equipment** (from **$177,616 million** to **$182,176 million**). These positive changes were partially offset by declines in **Investments in Equity Securities** and **Investments in Fixed Maturity Securities**, reflecting a strategic reallocation of capital.  **[0000950170-24-120241_brka-20240930.htm:3]** 

What factors contributed to the jump in Total Assets in Q3 2024?

The documents note that the total insurance and other liabilities increased from **$291,341 million** at the end of 2023 to **$313,796 million** as of September 30, 2024, which is an increase of **$22,455 million**.  **[0000950170-24-120241_brka-20240930.htm:3]**  However, they do not provide specific details on the reasons behind this increase; they only mention that components such as unpaid losses and loss adjustment expenses, unearned premiums, and other policyholder liabilities could have played a role.  **[0000950170-24-120241_brka-20240930.htm:3]** 

Why did Total Insurance and Other Liabilities increase significantly in Q3 2024?

53772c1e6662f487b282aa00710092bb2169f31b5885636e356a55bd3653815c

The **revenue spike in Q4 2023** was primarily driven by a significant increase in **investment and derivative gains** (rising to **$29.1 billion** from **$11.5 billion**), along with higher **insurance-investment income** (increasing to **$2.8 billion** from **$2.0 billion**) and improved **operating earnings** (growing to **$8.5 billion** from **$6.6 billion**) in Q4 2023.  **[0001193125-24-045977_d795719dex991.htm:1]** 

What drove the revenue spike in Q4 2023?

The huge swing in Q4 2023 investment gains was primarily driven by **substantial unrealized gains on equity securities**, which added approximately **$29.5 billion** to the results. This was partly offset by **after-tax realized losses of $330 million** from investment sales—a stark contrast to the favorable realized gains in the prior period—and compounded by overall **volatility in equity markets** during the quarter.  **[0001193125-24-045977_d795719dex991.htm:1]** 

What caused the huge swing in investment gains in Q4 2023?

The provided documents give the totals for Q3 and Q4 2023—**68,112.00 USD million** in Q3  **[0000950170-23-058993_brka-20230930.htm:4]**  and **48,599.00 USD million** in Q4  **[0000950170-24-019719_brka-20231231.htm:121]** —and they detail certain factors impacting Q4 costs, such as higher insurance losses, energy costs, and other expenses.  **[0000950170-24-019719_brka-20231231.htm:80]**  However, these documents do not include any clear explanation as to why the overall total costs and expenses in Q4 were notably lower relative to Q3. Therefore, based on the available information, there isn’t a definitive explanation for the lower Q4 figure.  **[0000950170-23-058993_brka-20230930.htm:4]** **[0000950170-24-019719_brka-20231231.htm:121]** **[0000950170-24-019719_brka-20231231.htm:80]** 

Why were total costs and expenses notably lower in Q4 2023?

In Q4 2023, the drastic improvement in net earnings was primarily driven by a **substantial increase in investment and derivative gains**, which jumped to **$29,093 million** from **$11,455 million** in the prior year along with **operating earnings** rising to **$8,481 million** and a significant improvement in the **insurance underwriting** segment (increasing to **$848 million** from **$160 million**) due to lower catastrophe losses and enhanced underwriting at GEICO.  **[0001193125-24-045977_d795719dex991.htm:1]** **[0000950170-24-019719_brka-20231231.htm:67]** 

What factors drove the drastic net earnings improvement in Q4 2023?

33468a44ebfd86ffafbe49072971484991bf5628e202a8a07dae3f0ae32aea67

The low **operating cash flow** in Q3 2024 was largely driven by huge **income tax payments** – specifically, **$15.3 billion** was paid during the quarter due to taxable gains on equity securities. In addition, several changes in operating assets and liabilities, such as adjustments in **unpaid losses, receivables, income taxes, investment gains/losses**, and **other liabilities**, further contributed to the significant decrease in net cash from operating activities during this period.  **[0000950170-24-120241_brka-20240930.htm:7]** **[0000950170-24-120241_brka-20240930.htm:69]** 

Why was Operating Cash Flow so low in Q3 2024?

The swing to a negative income taxes figure in Q3 2024 was driven by several factors. **Berkshire Hathaway’s lower effective income tax rate of 18.5% in Q3 2024**, compared to 25.9% in Q3 2023, played a key role. In addition, **significant investment gains** and changes in operating assets and liabilities influenced the cash flow, contributing to the negative amount reported in the cash flow from operating activities during that period.  **[0000950170-24-120241_brka-20240930.htm:7]** **[0000950170-24-120241_brka-20240930.htm:29]** 

Why did Income Taxes swing negative in Q3 2024?

35fc1f110d9a2427e667e84d7aec543a0a13d2ba384a4d0c2c149e57b4f334a9

Total Revenues (USD, millions)

Investment Gains (Losses) (USD, millions)

Total Costs and Expenses (USD, millions)

Earnings (Loss) before Income Taxes and Equity Method Earnings (USD, millions)

Equity Method Earnings (USD, millions)

Earnings (Loss) before Income Taxes (USD, millions)

Income Tax Expense (Benefit) (USD, millions)

Net Earnings (Loss) (USD, millions)

Earnings Attributable to Noncontrolling Interests (USD, millions)

Net Earnings (Loss) Attributable to Berkshire Hathaway Shareholders (USD, millions)

b5725e44bcf7bf5e8b54327e93e1fa6b8b1983283f22abbd18a4ecde05aea395

e5402dc32141a88a0c3ef4cf3b805b4ab67ef9084f0e4cbbf4f3922f3d937391

3ec9f251bb60b58d45a1c95a9b505850b777352db12ef0e24810731c6b8bfafd

Sales, Service, and Leasing

- United States

- Other Regions

Railroad, Utilities, and Energy

Property/Casualty Premiums

Life/Health Premiums

Total Revenue

041412b25397c61869a7397a103e985d14eb50086d3f3e69a45182a6139e73a5

Number of cars/units for Consumer products at BNSF (thousands)

Number of cars/units for Industrial products at BNSF (thousands)

Number of cars/units for Agricultural products at BNSF (thousands)

Number of cars/units for Coal at BNSF (thousands)

Total number of cars/units at BNSF (thousands)

Percentage change in railroad freight volumes for Consumer products at BNSF (percentage)

Percentage change in railroad freight volumes for Industrial products at BNSF (percentage)

Percentage change in railroad freight volumes for Agricultural products at BNSF (percentage)

Percentage change in railroad freight volumes for Coal at BNSF (percentage)

Percentage change in total railroad freight volumes at BNSF (percentage)

Change in new home unit sales for Clayton Homes (percentage)

Change in unit sales for Forest River (percentage)

Change in policies in force for GEICO (percentage)

e659f96a0a3e912947c1f87952488286797be775cf2835392062350d2b96d5d3

e978f5b95d2c50dc8ac645bdb5a5140decb868aaa2f1f3245194599c2e5f1732

e8ac978b7ba8ab3d7abe5d5b4bef8112cf10dfa76bd49afa5f602fa9aca561e8

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

c847bc9ac33adfa45ee55f1705498174873514da145d4e1a6d707d9e594c12ef

Insurance - GEICO

Insurance - Berkshire Hathaway Primary Group

Insurance - Berkshire Hathaway Reinsurance Group

Insurance - Investment Income

Total Insurance

BNSF (Railroad)

Berkshire Hathaway Energy (BHE)

Pilot Travel Centers (Pilot)

Manufacturing

McLane

Service and Retailing

f695cbd7b3c7240ddff5772fa4d1677e02cc0893ff5046b52c622527fbb5befc

BERKSHIRE HATHAWAY (BRK-B)

Financials