Berkshire Hathaway Hoards $334 Billion in Cash. Is Buffett Stepping Out of the Game?

Buffett’s empire of companies offloaded a net $6 billion worth of shares in the fourth quarter. The Oracle of Omaha might soon be replaced by a new CEO.

💰 Cash Pile Tops $334 Billion

• Warren Buffett’s Berkshire Hathaway BRK.A has just about hit the brakes and is showing almost no signs of activity. After decades of outperforming the S&P 500 through smart purchases of “wonderful companies at fair prices,” the Oracle of Omaha sold more stocks than he bought, adding to his mountain of cash.
• In the fourth quarter of last year, Buffett’s sprawling conglomerate was a net seller of stocks to the tune of $6 billion in stock dumping. Berkshire added $9 billion more to his staggering pile of cash, reaching a record $334 billion from the previous quarter’s $325 billion.

😌 S&P 500 Returns Are But a Memory

• Even the man himself isn’t too sure he can stay in the game for much longer now. “At 94, it won’t be long before Greg Abel replaces me as CEO and will be writing the annual letters,” the long-reigning Berkshire Hathaway boss told investors in his annual letter to shareholders released Saturday morning.
• And indeed, while the S&P 500 has been rallying on tech giants’ making AI and quantum leaps, Berkshire has been sitting out and observing all the pumps (and dumps) from the sidelines, refusing to chip in (with a few rare exceptions).

❤️ Buffett and Berkshire — a Perfect Match

• For the quarter, Berkshire’s operational earnings increased 71% after taxes to $14.5 billion. The bottom line was boosted by a solid performance from the company’s insurance businesses and higher investment income.
• The company’s portfolio stood at $300 billion by the end of December with the biggest portion of it sitting in Apple shares AAPL — a total of 300 million worth about $75 billion. The legendary investor turns 95 in August while this year marks his 60th year at the helm of Berkshire — a tiny textile manufacturer he turned into a $1 trillion investment firm with the most expensive share price (over $700,000 a pop).