Berkshire Hathaway, spearheaded by Warren Buffett, witnessed unprecedented stock growth, with Class A shares soaring to a record-breaking $647,039 and Class B shares peaking at $430. This surge ensued following Berkshire’s announcement of a historic annual operating profit of $96 billion and a substantial cash reserve of $168 billion. Despite these remarkable achievements, Buffett cautioned about the potential end of “eye-popping performance” due to the company’s size and market concentration. Nonetheless, Berkshire’s long-term performance remains impressive, boasting an 18% year-to-date return, outpacing the S&P 500’s 7% gain. Over the past decade, Berkshire has yielded a remarkable return of 271%, while over the last 40 years, it surged by an astonishing 50,799%, significantly outperforming the S&P 500’s respective gains of 232% and 4,213%.Buffett’s annual letter to investors emphasized the challenges of maintaining high growth rates as Berkshire nears a $1 trillion market valuation. He stressed the company’s focus on longevity and stability over major deals and extraordinary performance. Berkshire’s substantial cash reserves and strategic investments, particularly in five prominent Japanese companies, reflect its deliberate approach to growth and potential international collaborations.Despite the initial surge to record highs, Berkshire Hathaway’s shares experienced a slight retreat, with Class A shares declining by 0.7% to approximately $625,000 and Class B shares also falling by 0.7% to around $415. This downturn occurred despite the company reporting a 28% increase in fourth-quarter operating earnings, primarily driven by gains in its insurance sector. Analysts suggest that the current stock price already incorporates the positive earnings outlook, while Buffett himself has tempered expectations for future performance, indicating that Berkshire is likely to marginally outperform the average American corporation in the future.Berkshire Hathaway’s annual report unveiled a staggering profit of $97 billion for the previous year, marking its highest-ever annual profit. This exceptional success was attributed to its robust insurance operations and investment income, which witnessed a nearly 48% increase. The conglomerate’s diverse business portfolio, which includes substantial stakes in companies like Apple, Bank of America, American Express, Coca-Cola, and Chevron, solidifies its status as a cornerstone of the American economy.Buffett also lauded Japanese trading houses for their shareholder-friendly policies, highlighting Berkshire Hathaway’s investments in Marubeni Corp., Mitsubishi Corp., Itochu Corp., Mitsui & Co., and Sumitomo Corp. These investments underscore Buffett’s admiration for the governance and performance of these firms, emphasizing Berkshire’s strategic approach to international investment.