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Berkshire Hathaway’s cash reserves reached a historic high of $334.2 billion by the end of the previous year, as Warren Buffett sold off stocks and accrued significant interest earnings from the company’s extensive investments in Treasury bills.
Berkshire, headquartered in Omaha, reported on Saturday a $9 billion increase in its cash holdings during the last quarter of the year. This increase was attributed to Buffett reducing investments in prominent U.S. stocks, including substantial sales of Citigroup and Bank of America shares. Over the year, the cash reserves of the conglomerate nearly doubled.
The vast enterprise posted operating earnings of $47.4 billion for 2024, marking a 27 percent increase from 2023, driven by an improved performance from its insurance business.
The operating earnings figures do not account for fluctuations in the value of Berkshire’s $272 billion stock portfolio, which CEO Warren Buffett has consistently regarded as inconsequential.
In 2024, Berkshire sold $143 billion worth of stocks, significantly exceeding the $9 billion invested back into equities, diverting most of these funds into short-term Treasury bills.
These financial results for the fourth quarter were disclosed alongside Buffett’s annual letter to shareholders. In his communication, Buffett noted that “In 2024, Berkshire’s performance surpassed my expectations, although 53 percent of our 189 operating businesses experienced a decline in earnings. We benefited from a predictable substantial increase in investment income as Treasury Bill yields rose and we increased our holdings of these highly liquid short-term securities.”
