Berkshire Hathaway's stock soared 5.04% on Monday after the conglomerate reported record operating earnings for the fourth quarter and full year 2024. The surge was driven by Warren Buffett's strategic decision to hoard cash instead of making major investments amid a lack of compelling opportunities.

In the fourth quarter, Berkshire's operating earnings surged 71% year-over-year to $14.5 billion, primarily fueled by strength in the insurance business and higher investment income. For the full year, operating earnings jumped 27% to $47.4 billion, setting a new record for the company.

However, what really caught investors' attention was Berkshire's massive cash pile, which reached a staggering $334 billion by the end of 2024. In his annual letter to shareholders, Buffett defended this strategy, stating that the company will never prefer cash over "good businesses," but admitted that "often, nothing looks compelling" in the hunt for equity investments.

The legendary investor also revealed that Berkshire paid a record $26.8 billion in corporate income tax to the IRS in 2024, largely due to realized gains from stock sales, including a significant reduction in its stake in Apple.

Analysts were quick to react, with UBS and KBW raising their price targets on Berkshire's shares, citing the company's strong financial performance and Buffett's disciplined approach to capital allocation. The surge in Berkshire's stock price on Monday suggests that investors are confident in Buffett's ability to navigate the market and deploy the company's massive cash hoard when the right opportunities arise.