Warren Buffett defended Berkshire Hathaway’s record cash reserve of $334.2 billion while emphasizing the company’s ongoing commitment to equities. High valuations in the U.S. stock market have limited deal-making, but Buffett reassured shareholders about the significant investments still held in equities despite a decrease in marketable stocks.
Warren Buffett, the renowned investor known as the Sage of Omaha, addressed shareholders in his annual letter, emphasizing Berkshire Hathaway’s enduring commitment to equities. Despite currently holding a substantial cash reserve of $334.2 billion at the end of 2024, Buffett reassured investors that the majority of funds remain invested in equities. He indicated that high valuations in U.S. stocks have limited acquisition activities and contributed to stock disposals, including shares of Apple.
Buffett specifically noted that while there has been a decrease in marketable equities—from $354 billion to $272 billion—the company maintains a significant amount of non-quoted controlled equities. He stressed that the preference for investing in equities is a steadfast part of Berkshire’s strategy, indicating no intention to alter this focus despite the current cash position. This commitment to equities reflects Buffett’s long-standing investment philosophy, which has consistently driven Berkshire Hathaway’s success.
In summary, Warren Buffett has reaffirmed Berkshire Hathaway’s dedication to equities in his shareholders’ letter, despite the conglomerate’s record cash reserves. The drop in marketable equities does not signify a change in investment strategy, as the firm’s focus remains firmly on equity investments. Buffett’s insights underscore his confidence in the long-term value of equity markets.
Original Source: www.thetimes.com
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