Berkshire Hathaway profits increased more than 20% in 2024 and show a strong accumulation of cash. The mythical investor continues in a conservative position and doubt about what to invest.
The operational gains of Berkshire Hathaway By 2024 they reached US $ 47,437 million, which represents an increase of 27% compared to US $ 37,350 million registered in 2023. This growth was especially notable in the fourth quarter, where the operational profits fired 71 %, reaching US $ 14,530 million. The highlight of the results was its growing cash reserve that continues to grow, even without opportunities in sight.
According to the corporate balance, this cash reserve reached US $ 34.2 billion, showing a significant increase compared to US $ 325,000 million registered at the end of the third quarter and, above all, compared to US $ 168 .000 million closing of 2023.
Despite what some analysts consider a “Extraordinary cash position”, Warren Buffett stressed that the majority of Berkshire’s capital is still invested in shares. “That preference will not change “he said, and although the participation in traded shares fell from US $ 354,000 million au $ 272,000 million, the value of their non -listed controlled companies increased slightly, staying well above the value of the portfolio of negotiable shares.
Buffet also stressed that Berkshire will continue to invest most of its capital in shares. However, in terms of current market, he said “Often, nothing seems convincing” and that “very rarely we are overwhelmed by opportunities.” In short, the legendary investor It seems doubtful about where to invest at this time, maintaining an impartial posture towards the variable income and choosing those in which you can obtain better yields.
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Warren Buffett does not get high performance actions
Berkshire extended his wallpaper for another quarter, which has been taking place since May. In his letter to the shareholders last year, Buffett had already expressed the shortage of opportunities, stating that only a small number of companies in the US can really influence Berkshire, and that outside the country there are no significant options for capital deployment.
Buffett is still cautious in a bullish market, especially after the advances of the S&P 500, which has gained more than 20% in the last two years. Concerns about economic slowdown, Trump’s policy and shares of actions generated some uncertainty.
However, Buffett supported Greg Abel, his designated successor, highlighting his ability to act at critical moments, as Charlie Muger did. Abel, who supervises non -insurance operations, will have the last word in Berkshire’s investment decisions, including those related to public actions.
Some analysts suggest that Buffett’s conservative decisions can be related to preparation for when Abel assume leadershipseeking to reduce excessive positions and accumulate effective. However, Buffett is more optimistic with respect to diversified Japanese conglomerates, such as Ittochu, Marubeni, Mitsubishi, Mitsui and Sumitomo. Berkshire invested in these companies in the last six years, with a long -term investment horizon, and Buffett indicated that their participation in them could grow in the future Due to the solidity of their business models and attractive capital practices.
Source: Ambito
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