The 94-year-old CEO of Berkshire Hathaway has not only hoisted cash levels to a record $334 billion but also continued net selling of stocks in the last quarter. Interestingly, the “Oracle of Omaha” offered no explanation for this move in his recently released annual letter.
Instead, Buffett emphasized that hoarding cash doesn’t signify a waning love for stocks. “Despite what some commentators may tell you, our equity holdings’ predominance will never change,” Buffett wrote in the 2024 annual letter released on February 22. “That commitment will never change.”
 Warren Buffett, the 94-year-old sage of Omaha
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Berkshire’s massive cash pile has raised eyebrows, especially as interest rates are predicted to decline from their multi-year highs. Lately, the billionaire has repeatedly expressed disappointment about the pricey market and the lack of attractive investment opportunities. This has tested the patience of investors and analysts alike, who are eagerly awaiting a convincing explanation for this strategy.
Despite the stock sales, Buffett reaffirmed his long-term commitment to the equity markets: “Berkshire shareholders can rest assured that we will forever allocate most of our funds to stocks—mainly American stocks, although many of these companies will have significant operations abroad. Berkshire will never allocate significant funds to assets equivalent to cash or hold cash itself as our major asset choice, preferring ownership in businesses with decent returns on equity instead.”
It appears that shareholders will have to wait a while longer for a satisfactory answer, as the Omaha-based conglomerate continued net stock sales in the last quarter of last year—marking the ninth consecutive quarter of this strategy, according to the company’s annual report also released on Saturday.
In 2024, Berkshire sold over $134 billion in stocks net, primarily by trimming its two largest investments, Apple and Bank of America. Notably, the conglomerate also paused its stock buyback program, with no repurchases in the fourth quarter of 2024 and the first quarter of 2025 as of February 10.
‘Seldom Anything Attractive’
Buffett is exercising caution amidst the buoyant American stock market, with the S&P 500 posting gains of over 20% for two consecutive years and continuing its upward trajectory this year. However, some unsettling signs have emerged in the past week, with growing concerns about a slowing economy, volatility stemming from President Donald Trump’s rapid policy shifts, and overall stock valuations.
Berkshire’s shares have also posted impressive gains of 25% and 16% in the last two years, with an additional 5% increase so far this year.
In his letter, Buffett hinted at a concern about stock valuations. “Seldom anything attractive; we rarely see anything that even mildly interests us,” Buffett shared.
A notable aspect of this year’s letter was Buffett’s special mention of his successor, Greg Abel, and his ability to spot investment opportunities, even comparing him to the late Charlie Munger. “Greg has clearly demonstrated investment skills in such situations, just as Charlie did,” Buffett remarked.
Some market observers speculate that Buffett’s cautious moves in the past year reflect not only market predictions but also a potential strategy to prepare Abel by streamlining oversized positions and accumulating resources for his future deployment.
However, the “Oracle of Omaha” left open the possibility of increasing investments in the five Japanese trading companies he started buying nearly six years ago: “Over time, it’s possible that you’ll see our ownership percentage increase in any or all of the five companies.”
Vu Hao (Based on a report by CNBC)
– 06:20 02/23/2025
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