Berkshire Hathaway Stock: Buffett Exits ETF Positions

Warren Buffett's investment holding company, Berkshire Hathaway, made headlines in the fourth quarter of 2024 by liquidating all its ETF positions while sitting on a record cash pile of $334.2 billion. The company, which managed a portfolio worth approximately $267 billion at year-end, sold its shares in both the SPDR S 500 ETF Trust and the Vanguard S 500 ETF—financial instruments that track the broad U.S. market index. This move comes as part of a larger trend, with Berkshire having been a net seller of securities for nine consecutive quarters, prompting speculation about Buffett's market outlook. Although the ETF positions represented only about 0.01 percent of the total portfolio each, the decision coincided with Berkshire's complete divestment from Ulta Beauty and reduced positions in eight other companies.

Long-term Investment Strategy Remains Unchanged

Despite the growing cash reserves and recent sell-offs, the legendary investor known as the "Oracle of Omaha" reassured shareholders in his latest letter that his fundamental preference for equities remains steadfast. Buffett emphasized that the majority of Berkshire's capital continues to be invested in stocks, stating that this preference will not change. He further clarified that Berkshire prioritizes ownership in quality businesses over cash equivalents. Market experts caution against overinterpreting these ETF sales given their minimal portfolio impact. Buffett also highlighted in his shareholder communication the importance of maintaining a long-term investment horizon and acknowledging—and acting upon—investment mistakes when necessary.

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Source StockWorld