Warren Buffett sells more stock and gets more cash, but in his yearly letter, he doesn’t say why.
It was worth more than $134 billion for Berkshire Hathaway to sell stocks in 2024.
Over the weekend, more questions were raised about why Warren Buffett is acting so defensively.
The 94-year-old CEO of Berkshire Hathaway sold more stocks in the last quarter and increased the company’s record-high cash hoard to $334 billion. However, in his much-anticipated annual letter, he failed to explain why the investor known for his smart stock purchases over the years seemed to be putting up more defences.
IBuffett maintains his love for stocks, despite Berkshire’s high cash level. Shareholders and outsiders are curious about Berkshire’s large cash, especially as interest rates are expected to drop. Buffett has been upset about the expensive market and limited buying opportunities, leading to frustration among investors and experts.
Buffett said that Berkshire will continue to prefer stocks to cash, even though he has sold stocks many times.
“Berkshire shareholders can be sure that we will always invest a large portion of their money in stocks—mostly American stocks, though many of these will have important international operations,” Buffett wrote. Berkshire Capital Management has sold over $134 billion worth of stocks in 2024, primarily due to the loss of value in Apple and Bank of America, causing the company to sell its stocks for the ninth consecutive quarter in the last three months.
At the same time, it looks like Buffett doesn’t like his own stock either. The company kept its buyback ban in place and didn’t buy back any shares in the fourth quarter or the first quarter until February 10.
This is true even though the conglomerate reported a huge rise in running earnings on Saturday.
“Quite often, nothing seems interesting.”
He isn’t doing anything during a huge bull market. The S&P 500 has gained more than 20% for two years in a row and is now in the black again so far this year. But in the past week, some cracks have started to show. People are getting more worried about the economy slowing down, the stock market as a whole, and the instability caused by President Trump’s quick policy changes.