Warren Buffett is sitting on a mountain of cash — and he’s in no rush to spend it.
Berkshire Hathaway Inc (NYSE:BRK.A) ended 2024 with a record amount in short-term US Treasury bills and cash-like securities, a move Buffett attributed to a simple reality: “Often, nothing looks compelling; very infrequently, we find ourselves knee-deep in opportunities.”
With interest rates up, Berkshire’s idle cash is at least earning a respectable return, but Buffett made one thing clear: he’s not hoarding cash for the long haul.
“We will forever deploy a substantial majority of our money in equities—mostly American equities,” Buffett wrote in his annual letter to shareholders, reminding investors that Berkshire is still in the business of buying and owning great companies, not just sitting on dry powder.
Where Berkshire made and lost money
Despite Buffett’s reluctance to deploy cash, Berkshire still racked up $47.4 billion in operating earnings, up from $37.4 billion the year before.
The insurance business — Berkshire’s crown jewel — was the standout performer. GEICO posted impressive results thanks to smarter underwriting and reduced accident losses while rising interest rates gave Berkshire’s vast investment portfolio a boost.
But not everything went according to plan. Buffett noted that 53% of Berkshire’s subsidiaries reported lower earnings in 2024. The manufacturing, service, and retail businesses faced headwinds as demand softened and costs climbed.
Even the railroad and utilities divisions—two of Berkshire’s biggest assets outside insurance—had mixed results, with railroads struggling due to weaker freight volumes and utilities grappling with rising operational costs.
A record tax bill, but (predictably) no dividend
Even with some business challenges, Berkshire still ended up paying a staggering $26.8 billion in U.S. corporate income tax—the largest corporate tax payment in American history.
Over the past 60 years, Buffett’s empire has sent more than $101 billion to Uncle Sam.
And yet, shareholders hoping for a cut of that wealth in the form of a dividend will be left waiting. The company has paid only one dividend in its history—a modest 10 cents per share back in 1967. Buffett himself has called it a mistake, joking that the memory feels like “a bad dream.”
Selling stocks, but not giving up on them
Berkshire’s cash hoard didn’t come from nowhere—it sold a lot of stock in 2024. Over the first nine months of the year, Berkshire offloaded about $133 billion in equities while purchasing less than $6 billion.
The most eye-catching move? Berkshire slashed its stake in Apple by nearly two-thirds, reducing its holdings from $174 billion to below $70 billion. Buffett also trimmed Berkshire’s stake in Bank of America by 26%, taking it below the 10% ownership threshold.
Still, the Sage of Omaha remains a firm believer in stocks over cash. “Paper money can see its value evaporate if fiscal folly prevails,” he warned, adding that while bonds and cash equivalents may seem safe, businesses are what really drive long-term wealth.
For now, Buffett is waiting for his next great deal. But history suggests when he finds it, he won’t hesitate to strike.