Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Warren Buffett walks on the floor and meets with the shareholders of Berkshire Hathaway before his annual meeting in Omaha, Nebraska, on May 3, 2024.
David A. Grogen | CNBC
The mystery about the surprisingly defensive position of Warren Buffett deepened over the weekend.
The 94 -year CEO of Berkshire Hathaway He sold more shares in the last quarter and grew a pile of record even larger than $ 334 billion, but could not explain in his highly anticipated annual letter why the investor known for his cunning capital purchases over time apparently I was destroying the hatches.
Instead, Buffett said this position in no way represented a departure from his love for stocks.
“Despite what some commentators currently see as an extraordinary position in cash in Berkshire, the vast majority of their money remains in actions,” Buffet wrote in 2024 Annual letter Released on Saturday. “That preference will not change.”
Berkshire’s monstrous cash property has generated questions between shareholders and observers, especially because interest rates are expected to fall from their maximums of several years. The CEO and president of Berkshire in recent years have expressed his frustration for an expensive market and few purchase opportunities. Some investors and analysts have impatient with the lack of action and have sought an explanation why.
Despite its repeated sale of shares, Buffett said Berkshire will continue to prefer cash actions.
“Berkshire shareholders may be sure that we will always implement a substantial majority of their money in shares, mostly US actions, although many of them will have important international operations,” Buffet wrote. “Berkshire will never prefer the ownership of the equivalent assets in cash on the property of good businesses, whether controlled or only partial property.”
Shareholders will have to wait a little more, it seems that the Conglomerate network based in OMAHA sold shares for a ninth consecutive quarter in the final period of last year, according to the company’s annual report, which was also published on Saturday.
In total, Berkshire sold more than $ 134 billion in shares in 2024. This is mainly due to the reduction of the two largest capital participations in Berkshire, Apple and Bank of America.
Meanwhile, it seems that Buffett is not finding his own attractive stock either. Berkshire continued his repurchase, rewarding not actions in the fourth quarter or in the first quarter until February 10.
This despite a massive increase in operational gains reported for the conglomerate on Saturday.
‘Often, nothing seems convincing’
Buffett is sitting in his hands in the middle of a furious upward market that has seen that the S&P 500 won more than 20% for two years in a row and moves towards Green again so far this year. However, some cracks have begun to develop last week, with some concerns about a slowdown economy, the volatility of the rapid changes in the policies of the new President Donald Trump and the general valuations of actions.
Berkshire’s shares increased 25% and 16% respectively in the last two years and have increased by 5% so far this year.
Buffett perhaps offered a small clue about stock assessments as a concern in the letter.
“We are impartial in our choice of capital vehicles, investing in any variety depending on where we can better implement their savings (and my family),” Buffet wrote. “Often, nothing seems convincing; very uncommon we find even the knees in opportunities.”
In this year’s letter, Buffett supported the designated successor Greg Abel in his ability to choose capital opportunities, even comparing it with the late Charlie Munger.
“Often, nothing seems convincing; very uncommon we find even the knees on opportunities. Greg has vividly demonstrated his ability to act at the time Charlie did,” Buffett said.
At last year’s annual meeting, Buffett surprised many by announcing that Abel, vice president of without insurance, Will have the last word about all Berkshire’s investment decisionsincluding supervision of the public shares portfolio.
Some investors and analysts have speculated that Buffett’s conservative movements in the last year are not a market call, but he prepares the company for Abel by reducing huge positions and accumulating effective for him to unfold one day.
Buffett said he would deploy capital in one area: the five Japanese commercial houses that began buying almost six years.
“Over time, you are likely to see Berkshire’s increase in the five increases,” he wrote.
