Warren Buffett, the famous investor and lord of the Berkshire Hathaway, has kicked off a buzz after Berkshire ditched more than $134 billion in stocks in 2024 for a record $334 billion hoard of cash. But in his annual letter published on Saturday, Buffett gave none, leaving them stumped.
Though there has been tremendous price action, Buffett cautionnened shareholders that Berkshire is still a stockholder. “The big chunk of money stays in equities,” he wrote, as he explained that conglomerate would never opt for cash-like assets over just great businesses.
Berkshire’s caution to invest aggressively is happening when equity markets have risen by over 20% for two straight years, as measured by the S&P 500. Some experts think he is out there waiting for another good opportunity, while others believe he is preparing Berkshire for a leadership changeover under successor Greg Abel. 
Adding to the enigma, Berkshire terminated its share buybacks a move that reveals another sign Buffett is cagy on deploying capital. Conversely, the company has shown further interest in Japanese trading houses and carried on a selective investment approach.
Buffett’s cautious game plan has some skeptics wondering: Is he hedging against an economic downturn or only temporarily on hold, waiting for the next big move? For now, investors must have faith in the “Oracle of Omaha” and the time-tested patience, of course.
