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Warren Buffett amasses more cash
and sells more stock, but doesn’t
explain why in annual letter
P U B L I S H E D SAT, F E B 2 2 2 0 2 5 • 9 : 3 6 A M E ST | U P DAT E D SAT, F E B 2 2 2 0 2 5 • 9 : 5 7 A M E ST
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Warren Buffett walks the oor and meets with Berkshire Hathaway shareholders ahead of their annual meeting in Omaha, Nebraska on
solo travel destination for
May 3rd, 2024.
2025—it’s not the United
David A. Grogen | CNBC 4 States
The mystery over Warren Bu ett’s surprisingly defensive stance deepened over
the weekend.
The 94-year-old CEO of Berkshire Hathaway sold more stocks in the latest
quarter and grew a record cash pile even larger to $334 billion, but failed to
explain in his highly anticipated annual letter why the investor known for his
astute equity purchases over time was seemingly battening down the hatches.
Instead Bu ett said that this posture in no way represented a move away from
his love for stocks.
“Despite what some commentators currently view as an extraordinary cash
position at Berkshire, the great majority of your money remains in equities,”
Bu ett wrote in the 2024 annual letter released Saturday. “That preference
won’t change.”
Berkshire’s monstrous ownership of cash has raised questions among
shareholders and observers especially as interest rates are expected to fall from
their multi-year highs. The Berkshire CEO and chairman in recent years has
expressed frustration about an expensive market and few buying
opportunities. Some investors and analysts have grown impatient with the lack
of action and have sought an explanation why.
Despite his repeated selling of stock, Bu ett said Berkshire will continue to
prefer equities to cash.
“Berkshire shareholders can rest assured that we will forever deploy a
substantial majority of their money in equities – mostly American equities
although many of these will have international operations of signi cance,”
Bu ett wrote. “Berkshire will never prefer ownership of cash-equivalent assets
over the ownership of good businesses, whether controlled or only partially
owned.”
Shareholders will have to wait a little longer it seems as the Omaha-based
conglomerate net sold equities for a ninth consecutive quarter in the nal
period of last year, according to the company’s annual report, which was also
released on Saturday.
All told, Berkshire sold more than $134 billion worth of stocks in 2024. This is
mainly due to the shrinking of Berkshire’s two largest equity holdings —
Apple and Bank of America.
Meanwhile, it appears Bu ett is not nding his own stock attractive either.
Berkshire continued its buyback halt, repurchasing no shares in the fourth
quarter or in the rst quarter through Feb. 10.
This is despite a massive increase in operating earnings reported by the
conglomerate on Saturday.
‘Often, nothing looks compelling’
Bu ett’s sitting on his hands amid a raging bull market that’s seen the S&P 500
gain more than 20% for two years in a row and move into the green again so far
this year. Some cracks have begun to develop in the past week, however, with
some concerns growing about a slowing economy, volatility from rapid policy
changes from new President Donald Trump and overall stock valuations.
Berkshire shares were up 25% and 16% respectively the last two years and are
up 5% so far this year.
Bu ett did o er perhaps a small hint about stock valuations being a concern in
the letter.
“We are impartial in our choice of equity vehicles, investing in either variety
based upon where we can best deploy your (and my family’s) savings,” wrote
Bu ett. “Often, nothing looks compelling; very infrequently we nd ourselves
knee-deep in opportunities.”
In this year’s letter, Bu ett did endorse designated successor Greg Abel in his
ability to pick equity opportunities, even comparing him to the late Charlie
Munger.
“Often, nothing looks compelling; very infrequently we nd ourselves knee-
deep in opportunities. Greg has vividly shown his ability to act at such times as
did Charlie,” Bu ett said.
At last year’s annual meeting, Bu ett surprised many by announcing that Abel,
vice-chairman of non-insurance operations, will have the nal say on all
Berkshire’s investing decisions, including overseeing the public stock portfolio.
Some investors and analysts have speculated Bu ett’s conservative moves in
the last year are not a market call, but him preparing the company for Abel by
paring outsized positions and building up cash for him to deploy one day.
Bu ett did signal he would be deploying capital in one area: the ve Japanese
trading houses he began buying nearly six years go.
“Over time, you will likely see Berkshire’s ownership of all ve increase
somewhat,” he wrote.
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