Warren Buffett’s annual letter has deepened the mystery over his defensive stance as CEO of Berkshire Hathaway. Despite selling more stocks in the latest quarter and accumulating a record cash pile of $334 billion, Buffett failed to explain why he was reducing his equity holdings.
In his 2024 annual letter, released on Saturday, Buffett said that the great majority of Berkshire’s money remains invested in equities, despite having a large cash position. He emphasized that this preference won’t change and that Berkshire will continue to deploy its money in equities, mostly American equities with significant international operations.
Shareholders will have to wait longer as Berkshire sold more than $134 billion worth of stocks in 2024, mainly due to the shrinking of its two largest equity holdings, Apple and Bank of America. The company’s buyback halt continues, repurchasing no shares in the fourth quarter or first quarter through Feb. 10.
Buffett’s decision to sit on cash amid a raging bull market has raised questions among investors. The S&P 500 has gained over 20% for two years, but Buffett expressed concerns about stock valuations. He also endorsed Berkshire’s vice-chairman, Greg Abel, as being able to pick equity opportunities, comparing him to the late Charlie Munger.
Buffett signaled that he would deploy capital in one area: Berkshire’s ownership of Japanese trading houses, which he began buying nearly six years ago. The company’s cash position has raised concerns among shareholders and analysts, who are waiting for an explanation for Buffett’s conservative moves.
Source: https://www.cnbc.com/2025/02/22/warren-buffett-amasses-more-cash-and-sells-more-stock-but-doesnt-explain-why-in-annual-letter.html