Warren Buffett's conglomerate, Berkshire Hathaway, reported an impressive operating profit of $14.53 billion in the fourth quarter, marking a 71% increase from the previous year. This financial success underscores the company's robust performance as it concluded 2024 with a staggering $334.2 billion in cash reserves. Despite this substantial cash pile, Buffett did not provide much insight into his decision-making process, especially regarding the sale of $134 billion in stock throughout the year.
Amidst these developments, federal workers received emails from Elon Musk's Department of Government Efficiency, requesting a summary of their weekly accomplishments. The emails, as reported by NBC News, did not threaten employment, though employees from specific agencies like the FBI, State Department, and Defense Department were advised not to respond. Recipients were given until 11:59 p.m. ET on Monday to submit their responses. On Musk's social media platform X, a statement added urgency to this request:
"Failure to respond will be taken as a resignation."
— Elon Musk's social media platform X
In the upcoming week, the market will be closely watching as Home Depot and Lowe's are set to report their earnings on Tuesday and Wednesday, respectively. These results are anticipated to provide valuable insights into consumer spending trends and the housing market's health. Additionally, Nvidia and Salesforce.com will release their earnings after the bell on Wednesday, further influencing market dynamics.
Investors will also pay attention to the personal consumption expenditures index due on Friday, which serves as the Federal Reserve's preferred inflation measure. This index could have significant implications for monetary policy and economic outlooks.
As Berkshire Hathaway continues to thrive, Warren Buffett addressed concerns about the company's cash position in his annual letter:
"Despite what some commentators currently view as an extraordinary cash position at Berkshire, the great majority of your money remains in equities."
— Warren Buffett's annual letter
While Berkshire Hathaway flourishes, only 11% of Fortune 500 CEOs are women—a record high but still indicative of the challenges in achieving gender parity in leadership roles.
The stock market faced a challenging week, with the S&P 500 and Nasdaq Composite experiencing declines of 1.7% and 2.5%, respectively. These fluctuations highlight ongoing uncertainties within the financial markets.