Why Is Warren Buffett Hoarding So Much Cash? Investor Shares Annual Letter

Newsweek via MSN ^ | 02/25/2025 | Peter Aitken

[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."

[SaxxonWoods]

I’m 75% in T-Bills just waiting for stocks to go on sale. Nibbling in the meantime on a couple of stocks in my core holdings.

[Jim W N]

The losses you mention would be swallowed up by the huge economic gains. The unemployed gov’t workers would have an abundance of new career/job opportunities from which to choose.

Economic boon often involves change and a certain amount of upheaval, but the result is betterment for the vast majority.

[BfloGuy]

Hoarding.

The Democrat word for saving.

[TexasGator]

“Anybody hear any indicators of such a downturn?”

The LEGENDARY SOCRATES, developed be Delta7, predicted it would be in 2015.