Warren Buffett meets Berkshire Hathaway shareholders ahead of the annual meeting in Omaha, Nebraska on May 3, 2024 and with Berkshire Berkshire Hathaway meets.
David A. Grogen | CNBC
The mystery of Warren Buffett’s surprising defensive stance deepened over the weekend.
94-year-old CEO Berkshire Hathaway More stocks sold in the latest quarter and added a record cash pile, even adding $334 billion, but failed to explain why the guy is known for his keen stock purchases in his much-anticipated year Investor, he seems to have announced the amount of incubation over time.
Buffett said that this posture does not represent his love for stocks.
“Although some commentators currently believe that the cash situation at Berkshire is extraordinary, the vast majority of your money is still in stocks,” Buffett wrote in 2024. Annual letter Released on Saturday. “This preference will not change.”
Berkshire raises questions among shareholders and observers about the horrible ownership of cash, especially since interest rates are expected to drop from their multi-year highs. In recent years, Berkshire CEO and Chairman has expressed frustration with an expensive market and few buying opportunities. Some investors and analysts are impatient with the lack of action and seek explanations for why.
Buffett said that despite his repeated selling of stocks, Berkshire will continue to prefer stocks over cash.
“Berkshire shareholders can rest assured that we will always deploy a large amount of funds in stocks – mostly U.S. stocks, although many of them will have international significance.” “Berkshire will never want to have cash equivalents,” wrote Buffett. ownership of assets, not ownership of good businesses, whether controlled or only partially owned.”
Shareholders will have to wait longer, as the company’s annual report was also released on Saturday, appearing to have sold shares in the ninth consecutive quarter of last year in the last quarter of last year.
All in all, Berkshire sold more than $134 billion worth of shares in 2024. This is mainly due to Berkshire’s two largest equity holdings – apple and Bank of America.
At the same time, it seems that Buffett has not found his stock attractive either. Berkshire continues to stop buying back, buying back no shares in the fourth quarter or the first quarter of February 10.
Despite significant increase in operating revenue Report by Saturday’s conglomerate.
“Often, nothing looks compelling”
Buffett sat in his hands, a fierce bull market that has already allowed the S&P 500 to grow by more than 20% for two consecutive years, and has entered green again so far this year. Although, over the past week, some cracks have begun to develop, fearing a slowdown, rapid policy changes in new President Donald Trump, and overall stock valuation.
Berkshire shares have grown 25% and 16% respectively over the past two years, up 5% so far this year.
Buffett does provide some tips on stock valuations.
“We are fair in choosing the option of equity, based on the variety we can best deploy your (and my family’s) savings to invest,” Buffett wrote. “Often, nothing looks compelling; Rarely find yourself knee-bent.”
In this year’s letter, Buffett did endorse his successor, Greg Abel, to pick up equity opportunities and even compare him to the late Charlie Munger.
“Often, nothing looks compelling; we rarely find ourselves knee-beat,” Buffett said.
At last year’s annual meeting, Buffett announced that Abel, vice chairman of non-insurance business, was surprised. Will have final decisions on all Berkshire investment decisionsincluding overseeing public equity portfolios.
Some investors and analysts speculated last year that Buffett’s conservative attitude was not a market call, but rather that he prepared for Abel by cutting large positions and deploying a day for him by setting up cash.
Buffett does show that he will deploy capital in one area: He began buying five Japanese trading houses for nearly six years.
“As time goes by, you may see an increase in ownership of all five people in Berkshire,” he wrote.
