Warren Buffett sells stocks and increases cash, remaining cautious in market

From CNBC: 2025-02-22 09:46:57

Warren Buffett’s defensive stock selling and cash pile growth puzzles investors. Despite $334 billion in cash, Buffett reassures shareholders that Berkshire remains committed to equities. Questions linger on market timing and lack of buying. Berkshire sold $134 billion in stocks in 2024, including Apple and Bank of America shares.

Buffett’s buyback halt continues despite strong operating earnings reported. Buffett remains cautious in a bullish market, hinting at concerns over stock valuations. Shares rose 25% and 16% in the last two years, up 5% this year. Buffett praises successor Greg Abel’s equity-picking skills and prepares Berkshire for his leadership.

Speculation arises over Buffett’s conservative moves as preparation for Abel’s future leadership. Buffett signals capital deployment in Japanese trading houses. Berkshire shareholders await explanation for Buffett’s defensive stance despite strong equity commitment. Buffett remains cautious in a market with growing concerns over stock valuations and economic slowdown.

Read more: Warren Buffett amasses more cash and sells more stock, but doesn’t explain why in annual letter