Summary: Warren Buffett, chairman of Berkshire Hathaway, has seen his company’s cash reserves reach an all-time high of $334.2 billion. Despite selling off substantial shares, including those of major financial institutions such as Citigroup and Bank of America, Buffett reassures shareholders of their continued investments in quality businesses. Berkshire has shifted some of the capital from these sales towards U.S. Treasuries, benefiting from higher interest rates, which resulted in significant investment income for the company’s insurance sector.
Additionally, Berkshire plans to expand its stake in Japan’s five major trading companies, hinting at a long-term increase in their equity ownership. Buffett also commented on the concerns regarding the U.S. federal deficit, warning about the risks of fiscal mismanagement and its impact on currency value. These comments come in the context of potential fiscal policy changes under President Donald Trump.
Buffett’s continued strategy might also relate to succession planning, having previously announced Greg Abel as his successor for the non-insurance operations. Buffett expressed confidence in Abel’s abilities to lead the company in the future.