Warren Buffett will walk the floor before the Berkshire Hathaway Annual Shareholders Meeting held in Omaha, Nebraska on May 3, 2024.
David A. Grogen | CNBC
Berkshire Hathaway shares were boosted after Warren Buffett’s conglomerate reported a surge in operating revenue, but shareholders who were awaiting news of what would happen to a huge mountain of cash could be disappointed Not there.
The Omaha-based parent’s Class A stock of GEICO and BNSF Railways rose indoors at 1.2% on Monday following Berkshire’s earnings report over the weekend. Berkshire Operating Income – Profit from the company’s wholly owned businesses jumped 71% in the fourth quarter to $14.5 billion, while underwriting increased profits by 302%, with 302% to $3.4 billion .
Increases in investment from Berkshire’s portfolio holdings slowed sharply in the fourth quarter, from $29.1 billion to $5.2 billion year-on-year. Berkshire sold more shares than it bought for the nine consecutive quarter in three months last year, bringing its total shares to more than $134 billion in 2024. Holdings – Apple and Bank of America.
As a result of sales, Berkshire’s huge cash pile grew to another record of $334.2 billion, from $325.2 billion at the end of the third quarter.
In Buffett’s annual letter, “Omaha Oracle” said raising a record amount of cash does not reflect the dimness of his love for buying stocks and businesses.
“Even though some commentators now consider Berkshire’s extraordinary cash job, the majority of your money remains in the stock,” Buffett wrote. “That preference remains the same.”
He suggested that he was sitting in his hands in a fierce bull market, saying, “often nothing is convincing.” Buffett also recognized his chosen successor, Greg Abeck, the ability to choose fair opportunities, and even compared him to the late Charlie Munger.
Meanwhile, the Berkshire acquisition halt is still in place as the conglomerate bought back zero shares in the fourth quarter and the first quarter of this year by February 10th.
Some investors and analysts expressed panic at the lack of action and waited for explanations, while others said Buffett’s conservative stance set the path to a major opportunity for the next recession I believe it will open.
“Shareholders should be relieved to know that by being in financial position to take advantage of opportunities during a crisis, companies will continue to survive and continue to grow stronger from economic or market slump,” said Glenview’s top investment. Director Bill Stone said. Trust companies and Berkshire shareholders.
Berkshire is having a strong year, up 25.5% in 2024, surpassing the S&P 500, the highest since 2021. Stock prices have so far increased by more than 5% in 2025.
