The article discusses Warren Buffett's investment moves through Berkshire Hathaway, highlighting a significant shift in strategy. In 2024, the firm sold $134 billion in stock and became a net seller for the second consecutive year. Buffett's preference remains for investing in solid businesses over cash-equivalents, yet his substantial cash reserve of $318 billion indicates a cautious approach amidst market uncertainty. The performance of the S&P 500 following Berkshire's investment patterns suggests that Wall Street should heed Buffett's warning about potential market movements.
Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses, whether controlled or only partially owned.
Berkshire is also sitting on about $318 billion in cash and cash equivalents at the close of 2024, which is about double the total amount held a year earlier.
Buffett struggled to find solid stocks last year and instead stashed away more cash. That's a very clear warning to Wall Street.
Historically, here's how the S&P 500 performed the year after Buffett was a net seller.
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