"Many market professionals interpret this defensive posture as a strong signal that Buffett views current market valuations as overheated, with few attractive investment opportunities meeting his very stringent criteria for long-term value. In addition, he not only thinks the stock market is overvalued, but he has not repurchased any Berkshire Hathaway Inc. ( NYSE: BRK-B) since the second quarter of 2024."
"So it is not surprising to report that for all of the success and stature Berkshire Hathaway has in the investment world, just five top companies make up over 70% of the fund's total holdings. While much more concentrated than most portfolio managers would ever consider, the strategy has worked for Berkshire Hathaway investors for years. It is likely to continue doing so in the future."
Berkshire Hathaway holds a record $381 billion, roughly 31% of its portfolio, in cash and short-term Treasury bills. The company has been a net seller of stocks for eight consecutive quarters, trimming positions in Apple and Bank of America and halting share repurchases since Q2 2024. Market professionals interpret the moves as a defensive signal that many equities appear overvalued and few opportunities meet stringent long-term value criteria. The portfolio remains highly concentrated, with five companies representing over 70% of holdings. Three long-term dividend-paying stalwarts were screened as likely to remain in the portfolio for decades.
Read at 24/7 Wall St.
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