Berkshire Hathaway currently holds approximately $318 billion in cash, setting a new historical record. Warren Buffett will preside over the shareholders’ meeting, attracting attention towards the company’s future investment direction.
In 2024, Buffett sold off stocks like Apple, not only further increasing the cash reserves but also demonstrating masterful timing and execution.
So far, Apple’s market value has dropped by $1 trillion from its peak in December of last year, a decline of a quarter. The review shows Buffett’s timing of the sale was very precise, almost foresightful.
Regarding the reasons for selling Apple stocks, Adam J. Mead, a fund manager from New Hampshire and author of “The Complete Financial History of Berkshire Hathaway,” stated that Buffett may have been influenced by his experience with early investments in Coca-Cola.
Between 1988 and 1994, Berkshire made what was then the largest investment in Coca-Cola. By 1998, the investment had increased tenfold with a P/E ratio of 45. However, Buffett later expressed regret for not selling at the peak of the stock price.
From investing in Apple stock in 2016 to selling it in 2024, Buffett’s realized gains were approximately $110 billion. This could become the most profitable single stock investment in history.
Buffett previously mentioned that Apple is an excellent company but overpriced, stating, “It’s a great company, but the price is just crazy high.”
Despite facing market volatility and increasing recession risks, Berkshire Hathaway outperformed the S&P 500 index by nearly 25 percentage points this year.
Buffett is set to preside over the annual shareholders’ meeting in 11 days. The large amount of cash in his hands prompts questions on how it will be invested next, his views on the current tariff war, and his predictions for the future of the U.S. economy and the dollar, all of which will captivate the attention of global investors.