Key Points From Warren Buffett's Annual Letter To Berkshire Hathaway Shareholders

94 year old Warren Buffet wrote a letter to the shareholders, which is considered to be a must be for investors and general public. Here are top pointers from the letter

Berkshire Hathaway’s holdings are to the amount of $334.5 Billion by 2024, in the form of cash, cash equivalents. It is up from 2023's amount of $163.3 billion. 

Buffett assured investors that the majority of Berkshire’s money is still invested in equities, and not held in cash.

In 2024, Berkshire bought stocks worth $9.2 billion and sold over $143 billion worth of stock. It was a net seller of stocks. 

Buffet said that Berkshire’s non-marketable securities is far greater than its marketable portfolio.

The billionaire investor emphasized the fact that Berkshire will always prioritize owning businesses over holding cash.

The letter also noted that opportunities to buy good businesses at fair prices have been rare. However, Berkshire did find some targets in the fourth quarter.

Berkshire increased its stakes in five Japanese conglomerates, namely, ITOCHU, Marubeni, Mitsubishi, Mitsui, and Sumitomo, and praising their prudent use of capital and long-term approach.

Berkshire’s initial investment in these five Japanese companies in 2019 was $13.8 billion and had grown to $23.5 billion by the end of 2024.

Buffet emphasised that a single winning decision, like those in Coca-Cola or American Express, can vastly outweigh mistakes over time.