Warren Buffett goes to the floor and meets with Berkshire Hathaway shareholders before her annual conference in Omaha, Nebraska, on May 3, 2024.
David A. Groge | CNBC
The secret about Warren Buffett's surprisingly defensive attitude was deepened over the weekend.
The 94-year-old CEO of Berkshire Hathaway In the last quarter, more shares were sold and a record pile of records increased even greater to 334 billion US dollars, but did not explain in his mostly expected annual letter why the investor, who was known for his clever equity purchases over time, apparently put down the hatches.
Instead, Buffett said that this attitude was in no way a deduction from his love for shares.
“Despite the current commentators as an extraordinary cash position in Berkshire, the majority of her money remains in shares,” wrote Buffett in the annual letter from 2024 published on Saturday. “This preference will not change.”
Berkshire's monstrous property of cash has raised questions from the shareholders and observers, especially since the interest rates are expected to drop out of their multi -year highs. The CEO and chair of Berkshire in recent years has expressed frustrated over an expensive market and few purchase opportunities in recent years. Some investors and analysts have become impatient with the lack of measures and have been looking for an explanation why.
Despite his repeated sale of shares, Buffett said that Berkshire would continue to prefer the shares towards cash.
“The shareholders of Berkshire can be sure that we will use a significant majority of their money in shares forever – mainly American stocks, although many of them will have international operations important,” wrote Buffett. “Berkshire will never prefer the ownership of cash equivalent assets compared to the property of good companies, whether checked or only partially obsessed.”
The shareholders have to wait a little longer, since the conglomerate net equities based in Omaha will go out for a ninth quarter in a row in the last period of last year, according to the company's annual report, which was also published on Saturday.
In total, Berkshire sold stocks worth more than 134 billion US dollars in 2024. This is mainly due to the shrinkage of Berkshires two largest stock participations. Apple And Bank of America.
In the meantime, Buffett does not seem to find his own stocks attractive. Berkshire continued his buyback and screamed in the fourth quarter or in the first quarter until February 10th.
This despite a massive increase in the operating results registered by the conglomerate on Saturday.
“Often nothing looks convincing”
Buffett sits in his hands in a raging bull market, where the S&P 500 won more than 20% this year for two years in a row. However, some cracks have developed in the past week, with some concerns about a slow -slowing economy, volatility growing through quick political changes by the new President Donald Trump and the overall inventory evaluation.
The Berkshire shares have increased by 25% and 16% in the past two years and 5% this year.
Buffett might offered a small indication that stock assessments were a problem in the letter.
“We are impartial in our choice of equity vehicles and invest in both variants, based on where we can best use the savings of their (and my family),” wrote Buffett. “Often nothing looks convincing; very rarely we are knee -deep in chances.”
In this year's letter, Buffett supported the named successor Greg Abel in his ability to choose equity opportunities, and even compared him to the late Charlie Munger.
“Often nothing looks convincing; we are very rare in the possibilities. Greg has his ability to act like Charlie at times,” said Buffett.
At the last annual meeting, Buffett surprised many with the announcement that Abel, deputy chairman of the non -insurance operations, will have the last word about all Berkshire investment decisions, including monitoring the public stock portfolio.
Some investors and analysts speculated the conservative steps of Buffett last year are not a market call, but he prepares the company for Abel by looking at oversized positions and building cash for him so that he uses one day.
Buffett has signaled that he would use capital in an area: the five Japanese commercial houses that he had bought for almost six years.
“Over time, you will probably see that Berkshire's ownership of everyone will increase something,” he wrote.