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Why Is Warren Buffett Hoarding So Much Cash? Investor Shares Annual Letter
Newsweek via MSN ^ | 02/25/2025 | Peter Aitken

Posted on 02/25/2025 8:14:23 AM PST by SeekAndFind

Berkshire Hathaway CEO Warren Buffett, currently one of the 10 richest men in the world, discussed the mistakes he's made during six decades in charge of his company and his outlook on the economy in the coming years as part of his annual letter to shareholders.

Why It Matters

Buffett, who is 94 years old and has a net worth of just over $160 billion, took control of Berkshire Hathaway in 1965 when the company primarily focused on textiles and was a sinking ship of an investment. The now-famous "Wizard of Omaha" spent years reversing those fortunes and turned the company into one of the best performers.

A single share of Class A Berkshire Hathaway stock costs $718,750 as of close of business on Friday, still ranking as the most expensive stock in the world—several times more expensive than its nearest competitor, Lindt & Sprüngli AG, which lists at $106,000 per share. A Class B share of Berkshire Hathaway costs $478,74.

Buffett has invested in a range of companies, such as Sirius XM, American Express, Kraft Heinz, Mitsubishi, Coca Cola, Visa, T-Mobile, Domino's and more.

What To Know

Not too much changed from last year's letter, including two major points that Buffett ruminates on: First, that the company largely has its insurance holdings to thank for a growing profile despite 53 percent of the 189 operating businesses in the company's portfolio declining in earnings; and second, the company maintains an "extraordinary" cash position.

Berkshire holds around $325 billion in cash, a position that rose sharply after the COVID-19 pandemic. In 2020, Berkshire Hathaway peaked at around $146 billion in cash on hand, but as inflation ramped up, Buffett and his advisers expanded that holding.

However, Buffett stressed that "the great majority of your [investor] money remains in equities."

(Excerpt) Read more at msn.com ...


TOPICS: Business/Economy; Society
KEYWORDS: buffett; cash; equities; investment; warrenbuffet
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To: woodbutcher1963

Less gov’t is a leading indicator of more prosperity.

If Trump implements anything close to the tax breaks he’s been talking about, the economy should soar.

However, as with Reagan’s tax cuts, sometimes the economy will first go into a recession building pressure to reverse the tax cuts. But Reagan and his advisors were savvy enough to know that was a temporary economic reaction to what soon after became a great economic upturn.


21 posted on 02/25/2025 8:44:07 AM PST by Jim W N (MAGA by restoring the Gospel of the Grace of Christ (Jude 3) and our Free Constitutional Republic!)
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To: SeekAndFind

As I understand it, he doesn’t see any worthwhile investment opportunities.


22 posted on 02/25/2025 8:44:52 AM PST by Jonty30 (Groundhogs don't falsify their predictions for grant money, whereas climate scientists do. )
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To: crusty old prospector

He has his fortune, he’s been helping us make money for decades.


23 posted on 02/25/2025 8:45:39 AM PST by SaxxonWoods (Black guy upon receiving a MAGA hat: "MURICA!")
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To: Jonty30

Not only that, Buffet has been selling a lot of Apple ( his largest holding ) and Bank of America shares lately.

Of course he still holds a substantial amount of shares in these two companies, but he’s been trimming and taking profit.


24 posted on 02/25/2025 8:46:30 AM PST by SeekAndFind
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To: delta7

“Gold has historically signaled financial events.”

In 2014 you predicted gold would run to $5000 in 2015 precipitation a world financial collapse.

Is this just an extension of that 2014 prediction?


25 posted on 02/25/2025 8:47:24 AM PST by TexasGator
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To: SaxxonWoods

Do you own any BRK?


26 posted on 02/25/2025 8:51:33 AM PST by crusty old prospector
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Comment #27 Removed by Moderator

To: Jim W N

Agreed, but with changes in tariffs there will be winners and losers.
If you made your living by importing aluminum you might be concerned how that is going to be affected next month.

On the other hand if you are a domestic aluminum smelter you are welcoming the tariff on your competitors from outside our country.

If you are a aluminum fabricator that buys ingots you might now be trying to get them from some other smelter.


28 posted on 02/25/2025 8:55:19 AM PST by woodbutcher1963
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Thanks. I just saved $1,350.


29 posted on 02/25/2025 8:55:24 AM PST by TexasGator
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To: SeekAndFind

Why horde cash? Because everything is going to go on sale.

This has been obvious for a while. It has little to do with politics. The cycle has been artificially retarded since 2008. We are due for a pretty significant slow down. The Fed is out of options because they were at 0% for so long and the national debt is so high.

This one could get pretty rough.


30 posted on 02/25/2025 9:05:23 AM PST by Vermont Lt
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To: BenLurkin

31 posted on 02/25/2025 9:08:42 AM PST by kinsman redeemer (The real enemy seeks to devour what is good. )
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To: woodbutcher1963

Tariffs are a wild card, but if Trump succeeds in abolishing or greatly reducing income tax in lieu of tariff revenue, it would be a great economic win.

The greatest economic boon would be the elimination of the 80%+ $3 trillion unconstitutional portion of the federal gov’t.

It would be a miracle (economic-depressing gov’ts NEVER downsize that much) and the economy would blast off like we’ve never seen.


32 posted on 02/25/2025 9:16:33 AM PST by Jim W N (MAGA by restoring the Gospel of the Grace of Christ (Jude 3) and our Free Constitutional Republic!)
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To: crusty old prospector

It’s been my largest holding for several years. ET is second and longest, owned it for 6 years. I nibble at both when they dip, like today.


33 posted on 02/25/2025 9:26:59 AM PST by SaxxonWoods (Black guy upon receiving a MAGA hat: "MURICA!")
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To: SaxxonWoods

People in my industry are haters on ET. They are very difficult to deal with. But that could be good for shareholders.


34 posted on 02/25/2025 9:29:08 AM PST by crusty old prospector
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To: Jonty30

“As I understand it, he doesn’t see any worthwhile investment opportunities.”

He buys when he sees value so cheap he can’t resist. He’s very patient. He is nibbling now, no big buys. There is a general sense that the market is going to churn for the first half of the year. He’s beaten the S+P500 for 29 years. He also buys back his own stock when he thinks it’s cheap so we all watch for that. That’s his way of paying a dividend, he lowers the float of his stock on the market.


35 posted on 02/25/2025 9:32:58 AM PST by SaxxonWoods (Black guy upon receiving a MAGA hat: "MURICA!")
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To: Jim W N

Yes, but even in that there will be winners and losers.
The losers could be all the people in northern VA and MD that lose their jobs and maybe have to move to TX to find a new job. That may not be good home builders in that area.

If we go to a flat tax or something like that does that mean I don’t need a CPA to do my income taxes in the future.
Probably not good news for my accountant or someone in college studying to be a CPA.


36 posted on 02/25/2025 9:33:11 AM PST by woodbutcher1963
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To: woodbutcher1963

He takes a long term view and never invests in businesses he doesn’t understand. (According to what I’ve read over the years.)


37 posted on 02/25/2025 9:36:42 AM PST by MV=PY (The Magic Question: Who's paying for it?)
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To: SeekAndFind

Meanwhile, he’s adding to his position in Sirius (SIRI,) as am I.


38 posted on 02/25/2025 9:38:03 AM PST by Miami Rebel (pro-)
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To: crusty old prospector

Everybody hates the competitors that outperform them. Energy is a crowded place. If ET stay flat in price, you make about 6.6% per year right now. ET is less dependent on the price of oil and gas than most, it makes money moving product, not producing it. And all those thousands of miles o it’s pipelines have to be maintained, plus it looks like the K=L is coming online due to Trump.

Similar situation with VISA, a totally different company. It doesn’t care about interest rates like credit card companies, VISA gets paid to handle transactions, the interest rate doesn’t matter.

Buffet likes VISA too.


39 posted on 02/25/2025 9:40:24 AM PST by SaxxonWoods (Black guy upon receiving a MAGA hat: "MURICA!")
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To: napscoordinator

I got into the Class B stock last fall. It’s done quite well. I plan to look for further buying opportunities.


40 posted on 02/25/2025 9:52:07 AM PST by Romulus ( )
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