:max_bytes(150000):strip_icc():format(jpeg)/INV_Warren_Buffett_GettyImages-840924780-0573a8174d8142e08df56c9a864bfe32.jpg "Warren Buffett, chairman and chief executive officer of Berkshire Hathaway Inc.")
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Warren Buffett wrote in his annual letter to Berkshire Hathaway (BRK.A; BRK.B) shareholders that despite the conglomerate’s record money haul, the “substantial majority” of their money is in equities.
Berkshire, which on Saturday reported fourth-quarter operating earnings that pulsated more than 70% year-over-year to $14.53 billion, ended 2024 with a record $334.2 billion in liquidate, cash equivalents, and short-term investments in U.S. Treasury bills.
In his letter, Buffett stressed that despite its cash holdings, Berkshire ever after will focus on stock investments.
“Despite what some commentators currently view as an extraordinary cash belief at Berkshire, the great majority of your money remains in equities,” Buffett wrote. “That preference won’t change. While our ownership in marketable justices moved downward last year from $354 billion to $272 billion, the value of our non-quoted controlled equities increased measure and remains far greater than the value of the marketable portfolio.”
Berkshire has sizeable stakes in several big-name companies, embodying Apple (AAPL), Bank of America (BAC), Coca-Cola (KO), Chevron (CVX), and American Express (AXP).
“Berkshire shareholders can rest assured that we pleasure forever deploy a substantial majority of their money in equities—mostly American equities although many of these determination have international operations of significance,” Buffett added. “Berkshire will never prefer ownership of cash-equivalent assets all through the ownership of good businesses, whether controlled or only partially owned.”