Warren Buffett defended his company’s growing cash pile, despite more than half of its operating businesses reporting a decline in earnings last year. In Berkshire’s 2024 annual letter to shareholders, Buffett said the record profits came despite these declines, aided by a predictable large gain in investment income.
At the end of the year, Berkshire’s cash and other liquid securities stood at $334.2 billion, almost double the $167.6 billion seen at the end of 2023. The value of its equity portfolio stood at $272 billion at year-end; however, Buffett noted that a significant portion of shareholder funds remain in equities.
Buffett also reflected on mistakes made by Berkshire Hathaway over the years, stating that he has used the words “mistake” or “error” 16 times in his letters to shareholders. He added that given his advanced age, it won’t be long before Greg Abel takes his place as CEO and writes annual letters.
Buffett also touted the US economic tailwind benefiting him and his businesses, noting Berkshire’s tax outlays of $26.8 billion for the year is a record. The company’s activities now impact all corners of the country, with Buffett urging shareholders to spend their dividends wisely.
Source: https://finance.yahoo.com/news/warren-buffett-says-berkshire-hathaway-did-better-than-i-expected-last-year-in-latest-letter-to-shareholders-151248284.html