Billionaire Investor Warren Buffett Concerns about record-breaking cash piles have been addressed Berkshire Hathaway BRK.
what happened: In a letter to shareholders on Saturday, Buffett assured his commitment to owning the business, which has reached an all-time high in the company’s cash reserves due to the lack of major acquisitions and stock sell-offs.
The 94-year-old investor decided to settle the cash pile, which was $334.2 billion late last year, a record valuation that made U.S. stocks less attractive and made Buffett very It is difficult to find the main deal.
Buffett assured shareholders that most of their funds will be deployed in stocks, mainly in the United States, many of whom have important international operations.
“Berkshire shareholders can rest assured that we will always deploy a large amount of money in stocks – while many of them will have important international operations, it is mainly U.S. stocks,” Buffett said.
The statement, along with Berkshire’s fourth-quarter results, added $9 billion to the cash pile as Buffett cuts its shares, including in stock sales at Citigroup and Bank of America.
Please read also: Berkshire Hathaway’s Q4 profit soared 71%, with companies paying more taxes than “Tech Titans”
The company’s cash pile has nearly doubled over the past year as it reinvested earnings for stock sales, including Apple’s multibillion-dollar stock bill.
“As Treasury yields increase, we are helped by predictable returns from predictable investment income, and we greatly increase holdings in these highly liquid short-term securities.”
“If fiscally stupid, paper money can see its value evaporate. In some countries, this reckless approach has become a habit, and in our short history, the United States has been close to the edge. Fixed corporate bonds have no protection, no Any protection currency, “buffet sharing.
Why it matters: Buffett’s reassurance was at a critical time, as the company’s cash reserves reached an all-time high due to the lack of major acquisitions and stock sell-offs.
Investors’ commitment to owning a business and their preference for “good business ownership” rather than cash equivalent assets are strong messages for a company’s investment strategy.
Read next
Buffett reflects on the 60 years of Berkshire helmet
Market News and Data Benefits to You by Benzinga API
©2025 benzinga.com. Benzinga does not provide investment advice. all rights reserved.
