Company: BRK-A
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000950170-25-025210
Chunk: 254

Company: BERKSHIRE HATHAWAY INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 254
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 Our significant market risks are primarily associated with equity prices, interest rates, foreign currency exchange rates and commodity prices. The fair values of our investment portfolios remain subject to considerable volatility. The following sections address the significant market risks associated with our business activities.

Equity Price Risk 

Investments in equity securities represent the most significant portion of our consolidated investment portfolio. Strategically, we strive to invest in businesses that possess excellent economics and management, and we prefer to invest a meaningful amount in each company. Historically, our investments have been concentrated in relatively few issuers. At December 31, 2024, approximately 71% of the aggregate fair value of our investments in equity securities was concentrated in five companies. 

We often hold our investments for long periods and short-term price volatility has occurred in the past and will occur in the future. We also maintain significant levels of shareholder capital and ample liquidity to provide a margin of safety against short-term price volatility. 

The following table summarizes our investments in equity securities, excluding our investments in Kraft Heinz and Occidental common stocks that are accounted for under the equity method, and the estimated effects of a hypothetical 30% increase and a 30% decrease in market prices as December 31, 2024 and 2023. The selected 30% hypothetical increase and decrease does not represent the best or worst case scenario. Indeed, results from declines could be far worse due both to the nature of equity markets and the concentrations existing in our investment portfolio. Dollar amounts are in millions. 

    Fair Value

    HypotheticalPrice Change
     
    EstimatedFair Value AfterHypotheticalChange in Prices

    EstimatedIncrease(Decrease)in Net Earnings (1)

    December 31, 2024

    Investments in equity securities
     
    $
    271,588

    30% increase
     
    $
    351,020

    $
    62,615

    30% decrease

    192,323

    (62,483
    )

    December 31, 2023

    Investments in equity securities
     
    $
    353,842

    30% increase
     
    $
    457,993

    $
    82,281

    30% decrease

    249,885

    (82,129
    )

(1)The estimated increase (decrease) is after income taxes. 

K-61

Management’s Discussion and Analysis