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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 cash haul, the “substantial majority” of their money is in equities.
Berkshire, which on Saturday reported fourth-quarter operating earnings that surged more than 70% year-over-year to $14.53 billion, ended 2024 with a record $334.2 billion in cash, cash equivalents, and short-term investments in U.S. Treasury bills.
In his letter, Buffett stressed that despite its cash holdings, Berkshire always will focus on stock investments.
“Despite what some commentators currently view as an extraordinary cash position at Berkshire, the great majority of your money remains in equities,” Buffett wrote. “That preference won’t change. While our ownership in marketable equities moved downward last year from $354 billion to $272 billion, the value of our non-quoted controlled equities increased somewhat and remains far greater than the value of the marketable portfolio.”
Berkshire has sizeable stakes in several big-name companies, including Apple (AAPL), Bank of America (BAC), Coca-Cola (KO), Chevron (CVX), and American Express (AXP).
“Berkshire shareholders can rest assured that we will forever deploy a substantial majority of their money in equities—mostly American equities although many of these will have international operations of significance,” Buffett added. “Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses, whether controlled or only partially owned.”
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