Berkshire Hathaway (BRK.B, Financials) surged 5% to $502.89 as of 2:45 p.m. ET on Monday, pushing its market capitalization past $1.08 trillion for the first time.

Driven by solid success in its insurance operations, the stock rise followed the company's outstanding fourth-quarter results, which saw operating profits leap 71% to $14.5 billion. Operating results for the 2024 full-year rose 27%; meanwhile, Berkshire's cash reserves surged to a record $334 billion. CEO Warren Buffett (Trades, Portfolio) confirmed the company's commitment to equity investments even with the significant cash build-up.

The response of the stock market has been mostly favorable. Rising 3.1% to $741,090, Class A shares (BRK.A, Financials) also showed notable increases; Class B shares soared 5.04% to $502.89. Citing the company's earnings progress and solid cash situation, UBS analyst Brian Meredith boosted his price objective for Class A shares to $836,135.

In his annual shareholder letter, 94-year-old Buffett stated that Greg Abel would be appointed CEO. Acknowledging his age, Buffett said that the leadership change will happen shortly to guarantee consistency in the management of the business.

Also revealed by Berkshire was a record $26.8 billion in corporate income tax payments for 2024. Reiterating the company's conservative investing strategy, Buffett urged the government to distribute this money sensibly. Though market values are high, Berkshire intends to keep its cash reserves intact while still making equity investments.

The corporation has also eliminated mentions of diversity and inclusion from its 2025 annual report, therefore departing from past years when such programs were emphasized. The shift captures a larger trend among American companies lowering public focus on DEI initiatives in reaction to legislative constraints.