Warren Buffett raises more money and sells more shares but does not explain why in an annual letter
Warren Buffett walks Kata and meets with shareholders Berksshire Hathaway on the eve of his annual meeting in Omahi, Nebraska, May 3, 2024.
David A. Grogen | CNBC
The mystery over the surprisingly defensive attitude of Warren Buffett deepened over the weekend.
94-year-old executive director Berksshire Hathaway He sold more shares in the last quarter and increased a record crowd of cash even more to $ 334 billion, but failed to explain in his expected annual place, why the investor is known for his discerning capital shopping over the time seemingly crashed down Hatche.
Instead, Buffett said this posture did not in any way be a departure from his love for stock.
“Despite what some commentators currently see as an extraordinary cash position in Berksshire, the vast majority of your money stay in capital,” Buffett wrote in 2024. Annual letter Posted on Saturday. “That tendency will not change.”
Berksshire’s monstrous ownership of cash asked questions among shareholders and observers, especially since it is expected that interest rates will fall from its perennial maximums. Executive director and President Berksshire has expressed frustration in recent years because of the expensive market and several buying options. Some investors and analysts became impatient for lack of action and asked for an explanation why.
Despite the repeated sales of stock, Buffett said Berksshire would continue to prefer the cash shares.
“Berksshire shareholders can be sure that we will forever implement a significant majority of our money in capital – mostly US shares, although many of them will have international operations of importance,” Buffett wrote. “Berksshire will never prefer ownership of property equivalent money in relation to ownership of good companies, whether controlled or partially owned.”
The shareholders will have to wait a little longer, it seems that the Omahi -based conglomerate has sold shares for the ninth consecutive quarter in the last period last year, the company’s annual report, which was also announced this weekend.
All in all, Berksshire sold more than $ 134 billion in stock 2024. This is mostly because of the sale of Berksshire two largest shares in the capital – Apple and Bank of America.
In the meantime, even Buffett does not seem to consider its own share attractive. Berksshire continued to stop the purchase, buying no shares in the fourth quarter or in the first quarter until February 10th.
‘Often nothing looks convincing’
Buffett sits on her hands in the middle of a furious bull market for which S&P 500 has received more than 20% for two years in a row and has reunited in green so far. Although some cracks began to develop in the past week with some concerns about slowing economics, volatility from the rapid changes of policy from new President Donald Trump and overall estimate.
Berksshire shares have increased by 25%and 16%, respectively, for the last two years, and have increased by 5%this year.
Buffett offered perhaps a small hint of shares’ estimates.
“We are impartial in our choice of capital vehicles, investing in any variety based on a place where we can best implement your (and family) savings,” Buffett said. “Often nothing looks convincing; we rarely find ourselves on occasions.”
In this year’s letter, Buffett supported the heir of Greg Abel in his ability to choose capital capabilities, even comparing him to the late Charlie Munger.
“Often nothing looks convincing; we rarely find ourselves on occasions.
At last year’s annual meeting, Buffett surprised many, announcing that Abel, Vice President of Operations of Uncertain Insurance, will have the last word of all the investment decisions in Berksshireincluding the monitoring of the portfolio of public shares.
Some investors and analysts have speculated that Buffet’s conservative moves have been a market call in the last year, but he is preparing an Abela company by slowing huge positions and building money for a one -day schedule.
