Warren Buffett left before the annual general meeting of Berkshire Hathaway in Omaha, Nebraska on May 3, 2024.
David A. Grogen | CNBC
Berkshire Hathaway Stocks were boosted after Warren Buffett’s conglomerate reported a surge in operating earnings, but shareholders waiting for news are waiting for what will happen to their huge cash, which may be disappointed.
Berkshire’s earnings report on Monday was on Monday, with GEICO and BNSF Rail’s Class A shares up 1.2%. Berkshire’s operating profit – revenue from the company’s wholly-owned business – Soaring 71% to $14.5 billion In the fourth quarter, profit jumped 302% from the year period to $3.4 billion with the help of insurance coverage.
However, Berkshire’s investments fell sharply from its portfolio holdings, but in the fourth quarter, starting from $29.1 billion for the full year to $5.2 billion. Berkshire sold more stocks than they bought in the ninth quarter of last year, bringing total stock sales to more than $134 billion in 2024. It is worth noting that the 94-year-old investor has been actively narrowing down two of Berkshire’s largest stocks. Property – apple and Bank of America.
Berkshire’s huge cash pile grew to another record of $334.2 billion due to sales boom, up from $325.2 billion at the end of the third quarter.
In Buffett’s annual letter “Omaha’s Oracle” said that raising record cash did not reflect his love for buying stocks and businesses.
“Although some commentators currently believe that cash situations at Berkshire are extraordinary, most of your funds are still in stocks,” Buffett wrote. “This preference will not change.”
He suggested that overestimation was the reason for sitting in his hands in a fierce bull market, saying, “Often, nothing is convincing.” Buffett also endorsed his chosen successor, Greg Abek, to choose, The ability to share opportunities even compared him to the late Charlie Munger.
Meanwhile, Berkshire’s repurchase pause was still in due course as the conglomerate repurchased in the fourth quarter of this year as of February 10.
Some investors and analysts have expressed impatience with the lack of action and continue to wait for explanations, while others believe Buffett’s conservative stance will pave the way for a huge opportunity for the next recession.
“Stock shareholders should be comforted by knowing that the company continues to survive and becomes stronger from any economic or market recession to take advantage of opportunities during the crisis,” said Bill Stone, chief investment officer at Glenview. Trust and Boeh KSIL shareholders.
Berkshire performed well and underperformed, the best since 2021 when it rose 25.5% in 2024. Stocks have risen more than 5% so far in 2025.
