Berkshire Hathaway, the conglomerate led by Warren Buffett, announced an impressive surge in operating earnings during the fourth quarter of the year. The Omaha-based company reported operating earnings of $8.481 billion, marking a 28% increase from the year-ago period. For the full year 2023, operating earnings rose to $37.350 billion, up 17% from the previous year's figure of $30.853 billion.

The conglomerate also noted a significant increase in its cash reserves, with a record level of $167.6 billion held in the fourth quarter. This amount surpassed the $157.2 billion held in the prior quarter. Berkshire Class A shares experienced a rally of around 16% over the course of the year.

Geico, a key subsidiary of Berkshire Hathaway and considered Buffett's "favorite child," reported a profitable year with net underwriting earnings of $5.428 billion in 2023. The improved earnings were attributed to premium rate increases and lower claims made last year.

In contrast, Burlington Northern Santa Fe (BNSF) reported a 14% drop in full-year net earnings to $5.087 billion from the previous year's $5.946 billion. However, insurance underwriting for the conglomerate surged to $848 million in the fourth quarter, a significant increase from $160 million in the year-ago period.

Despite the positive growth in operating earnings, operating earnings from railroads and utilities and energy saw declines in the fourth quarter. Operating earnings from railroads decreased to $1.355 billion from $1.469 billion a year ago, while earnings from utilities and energy fell to $632 million from $739 million in the prior year.

Overall, Berkshire Hathaway's earnings more than doubled in the quarter, reaching $37.57 billion, and totaled $96.22 billion for the full year. The company emphasized in its annual report that fluctuations in quarterly results should be considered alongside its operating businesses' economic performance.

The conglomerate continues to demonstrate resilience and strong financial performance across its diverse business segments.