Warren Buffett Has Been Stockpiling Cash. It May Not Be the Dire Warning People Think.
The market has been buzzing about Warren Buffett's huge cash stockpile that's reached record levels. The legendary investor has been a net seller of equities for the past nine quarters, and Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) ended 2024 with $334 billion in cash and equivalents.That certainly sounds like a warning signal to the market, but in his annual shareholder letter released last week, Buffett gave an explanation for this stockpile that may not be what you think.Berkshire Hathaway has been building up its cash position for more than two years now, and as it's been growing, the message to the market seems to be looking clearer. It sold $143 billion in stock in 2024, while buying only $9 billion. That's a net sale of $134 billion for the year. Continue reading
The market has been buzzing about Warren Buffett's huge cash stockpile that's reached record levels. The legendary investor has been a net seller of equities for the past nine quarters, and Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) ended 2024 with $334 billion in cash and equivalents.
That certainly sounds like a warning signal to the market, but in his annual shareholder letter released last week, Buffett gave an explanation for this stockpile that may not be what you think.
Berkshire Hathaway has been building up its cash position for more than two years now, and as it's been growing, the message to the market seems to be looking clearer. It sold $143 billion in stock in 2024, while buying only $9 billion. That's a net sale of $134 billion for the year.
