David Paul Morris/Bloomberg
As the recent preference for Warren Buffett’s cash is going on, Berkshire Hathaway president and CEO say he is not giving up on shares.
Buffett wrote, “Some commentators currently see as an extraordinary cash status in Berkshire, most of your money remains in equity.”
According to Buffett, last year, Berkshire’s marketing equities fell from $ 354 billion to $ 272 billion. In the banking sector, the legendary investor sold a large part of his company’s stake
But at the age of 94, Buffett on Saturday demanded that his main investment philosophy – which made him one of the world’s richest people – has not changed.
He wrote, “The shareholders of Berkshire assured that we would forever deploy a large part of his money in equity.”
Although Berkshire is sitting on a massive pile of cash and treasury bills, Buffett stated that the company’s non-refined controlled securities have actually increased last year.
“Paper money can evaporate its value if fiscal stupidity prevails. In some countries, this careless practice has become accustomed, and, in the small history of our country, America has come close to the shore,” he wrote.
Buffett also offered some insight why he could be sour on some shares, even if it does not name any particular companies.
“With marketingable equity, it is easy to change the course when I make a mistake,” he wrote. “Additionally, with the ownership of minority positions, we cannot change management if that action is required or controlled is what is done with capital flow if we are unhappy with the decisions being done.”
Buffett’s adequate return from bank shares, which strengthened his reputation as a Wall Street Contract, has speculated about his inspiration.
Last year, Berkshire cut its stake in capital forest by 40%, in its holdings
In the previous year, the share prices of those three banks have increased by 48%, 44%and 33%respectively.
Buffett
Omaha, Berkshire at Nebraska may also demand to ensure that it has enough dry powder. If an opportunity appears, Hil told the American banker earlier this week. Berkshire has a history of buying and buying key positions in troubled companies or industries –
For its share, Buffett has admitted that Berkshire has more cash and American Treasury Bills will necessarily determine the traditional knowledge. Buffett wrote in a letter to the shareholders last year, “Extreme fiscal conservatism is a corporate vow to those who have joined the ownership of Berkshire,” Buffett wrote in a letter to shareholders last year.
Selling when other people are buying
Some supervisors argue that
Analysts have recently dumped extra fast on some stock Berkshire.
Wales Fargo analyst Mike Mayo wrote in January 1 that he thinks
Mihir Bhatia, an analyst
And
Despite excessive excuses of your share
“I don’t know what he really is doing, because clearly, we can’t ask, and we won’t ask,”
McDonald of Trust Securities said in a note on Friday that in a conversation night,
McDonald’s wrote, “The main question is that this speed has been (year-to-year) and probably how long it may continue, both of them feel some unclear/unknown at this time.”
Piper Sandler Analyst Scott Sifers wrote in a note that Berkshire’s rapid shedding
“We cannot start speculating on why Berkshire can sell,” said the sephyrs, referring to the company’s share
Still a believer in American Express
Buffett has confirmed confidence in some financial shares, such as Ellie Financial, which has lagged in the market with visas and American Express. Buffett first invested in the American Express in the 1960s, and the success of the credit card company promoted Berkshire’s fugitive growth.
In his letter to shareholders last year, Buffett said he would leave Berkshire’s holdings untouched throughout the year in the American Express. The credit card issuer at that time created about 4% -5% of Berkshire’s net worth. Buffett wrote that Amax was misbehaved in the past, “But definitely not now.”
“When you really find a wonderful business, stay with it,” Buffett wrote, referring to Berkshire’s Amex and Coca-Cola’s ownership. “Patience pays, and a wonderful business can offset several average -class decisions that are unavoidable.”
At the end of 2024, Amex and
Argas’s heals speculated that Buffett is holding his Amex stake while exposed to some other banks. Buffett may be concerned about the pocket of the economy, but still believes in the health of high -income consumers, including the wholesale of the business of Amex, heel said.
“I think we are seeing-and maybe Berkshire is looking at it in the same way-a dual economy, where Havs have a lot and notes have nothing,” said heel. “The overall American economy is fine, but people with lower-to-middle income are salary for Pcheche.”
Climate change
Buffett’s letter on Saturday had the influence of climate change on a major theme businesses. This is an issue that is especially pressurizing for Berkshire, which has a risk for both the insurance industry and the energy sector.
Buffett wrote, “Hurricane, tornado and wildfire property damage is largely, growing and rapidly unpredictable in their patterns and final costs.” “Climate change will be announcing its arrival.”
In Berkshire’s annual report released on Saturday, the company estimated that January 2025 wildfires in Southern California may be the result of a loss of about $ 1.3 billion for its insurance group.
Buffett wrote, “It is our job to absorb them and precious our lump to absorb them.”
But he also indicated that climate change could offer some opportunities for insurance companies. He wrote that the pricing in the property-consumer insurance business was strengthened last year, stating that there was a major increase in losses from storms.
Buffett, which will be 95 years old in August, is recently facing its mortality. “Father time always wins,” he wrote to shareholders in a November letter.
In 2021, Buffett confirmed his pick as CEO of Berkshire, Vice Chairing Greg Abel, currently 62 years old and leads the non-settle operations of the firm.
In his letter to the shareholders on Saturday, Buffett did not give any other specific information about the company’s succession timeline, but he wrote: “On 94, this Greg Abel will not be long before converting me as CEO and will write annuals. . Letter. “
