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.
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.
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 ...
NOTE:
The size of Berkshire’s “cash pile” has generated some headlines (again). Over the past few months, Buffett has been selling Berkshire’s two largest equity holdings, Apple (AAPL) and Bank of America (BAC), and its cash on hand grew to a record $334.2 billion at the end of the fourth quarter.
This isn’t just a signal of Buffett’s concern about these stocks right now... It could also be foreshadowing. The last time Berkshire had such a high percentage (27%) of its assets in cash was the lead-up to the great financial crisis and, before that, the dot-com bust.
The most stupid question ever. He is holding cash so when the financial event hits he sweeps in and purchases everything cheap. Nothing new to see here.
94 years old. Still chasing his fortune.
So thank you, Uncle Sam. Someday your nieces and nephews at Berkshire hope to send you even larger payments than we did in 2024. Spend it wisely. Take care of the many who, for no fault of their own, get the short straws in life. They deserve better. And never forget that we need you to maintain a stable currency and that result requires both wisdom and vigilance on your part.
I refuse to read anything that has “Why It Matter” in it.
The market has to correct sooner or later. Looks like he’s thinking it will be sooner.
s/b ““Why It Matters”
RE: 94 years old. Still chasing his fortune.
It has been more than a year since Buffett’s longtime business partner Charlie Munger passed away at 99, and at 94 years old himself, Buffett acknowledged that “it won’t be long before Greg Abel replaces me as CEO and will be writing the annual letters.”
He does need more savings for his old age.
There’s talk of a possibly severe economic down turn coming soon.
As delta7 says, cash is probably helpful if that’s the case.
Anybody hear any indicators of such a downturn?
If there is one, is should be short-lived unless the gov’t over-reacts and makes it worse.
Yep, Bidenomics affected him deeply.
Because, you know, he just wants to make sure he has enough for a comfortable retirement and at 94 he’s just not sure he can make $165 billion last.
True. The market is down so far in 2025. He doesn’t want to lose anymore. I’ll ride it out. I’m not 94 so time is ok for now.
There has been talk of a downturn by multiple people on YouTube and elsewhere on the internet for more than a year.
Buffet has been selling much of his Apple and Bank of America stock which is concerning. However, there is nothing wrong, as we say in my business, at taking a profit.
What Buffet and his minions have stated is that they just don’t see anything of value worth buying.
I guess he totally missed out on NVDIA and TESLA. Which are both getting sold off today from their recent highs.
The fact is there will be winners and losers from what the Trump administration is trying to do. Bringing offshore manufacturing jobs back to the USA.
Apple announced just yesterday a $500 Billion investment in manufacturing processes here in the USA. Exactly what Trump is looking for.
Scrooge McDuck ?
https://x.com/TuckerCarlson/status/1894085148812927478
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Gold has historically signaled financial events. Gold Up 46 percent YOY , and most bought by the world’s Central Banks. ALL the world’s paper currencies are collapsing in purchasing power….not to hard to see what is ahead.
The New York Fed’s Q3 2024 report for U.S. Household Debt and Credit showed a record level of U.S. consumer debt at $17.94 trillion. However, the report also reflected low debt delinquencies at only 3.5% of total consumer debt. Prior to Q3 2020, 3.5% of consumer debt delinquent would have been the all-time record low.
The aggregate U.S. consumer debt-to-income ratio was at a relatively low 82% in Q3 2024. Prior to the COVID-19 pandemic, this would have been the lowest debt-to-income ratio since 2002
There were 7.7 million open jobs in October 2024, which would have been an all-time high prior to the COVID-19 pandemic. Of course, these days a lot of these are fake job openings.
He doesn’t see many bargains of a size which would move the needle for Berkshire Hathaway. Also the ‘Buffett Indicator’ (the ratio of the aggregate market cap of the market vs the GDP) is unusually high.
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