Warren Buffett concluded his cash accumulation strategy in 2024. However, a closer examination of Berkshire Hathaway‘s investment portfolio indicates that Buffett remains discreet about his future investment plans.
Based on the firm’s 13-F regulatory disclosures, while top holdings like American Express AXP and Coca-Cola KO continue to perform steadily, Buffett is cutting back on significant investments in other long-standing assets.
“Warren Buffett’s selling is purposeful, not a sign of wavering confidence,” noted Steven Kibbel, a certified financial planner and advisor at Prop Firm App. “His record cash reserves indicate that he is strategically waiting for more advantageous investment opportunities.”
The stock market has been notably expensive in recent times, and Buffett historically avoids high valuations. “He has previously warned that when U.S. stock valuations significantly exceed GDP, it’s a concerning indicator,” Kibbel remarked. “That’s precisely the situation we find ourselves in right now.”
In total, Berkshire Hathaway sold equities valued at $143 billion in 2024, increasing its cash reserves to $334 billion. Although Buffett did not explicitly outline his cash strategy in the 2024 annual letter to shareholders, he provided key insights for investors.
“Despite perceptions of a significant cash position at Berkshire, the majority of investments remain in equities—this preference will persist,” Buffett stated. He reassured shareholders that the company will continually invest a large portion of their funds in equities, primarily American ones, even if many have significant international operations.
Buffett’s Sell-Off Areas
In 2024, particularly the year’s fourth quarter, saw Berkshire divesting large financial sector holdings.
Apple
Buffett’s team reduced its stake in Apple Inc. AAPL by approximately 67% in 2024, primarily during the first three quarters, but still retains $75.1 billion worth of shares. Apple’s stock has dropped by -14.8% in 2025, indicating that Buffett’s decision to trim his holdings was effective as the tech giant’s value declined.
Bank of America
Post the sell-off in 2024, Berkshire’s holdings in Bank of America BAC have fallen below the 700 million shares it initially acquired in 2017. “Buffett is strategically reducing his bank stock portfolio,” Kibbel observed, adding that rising interest rates pose challenges for banks’ lending operations amid economic unpredictability.
Conclusion on Buffett’s Cash Reserves
With the first quarter of 2025 nearing its end, it’s unclear what Buffett’s intentions are. However, selling may be part of a broader strategy beyond merely liquidating certain positions. “Buffett likely sees Apple as fully valued, even though it continues to be Berkshire’s largest stock holding,” stated David I. Kass, a finance professor at the University of Maryland.
Buffett’s asset sales, including smaller stocks like Ulta Beauty and Nu Holdings, were probably influenced by his portfolio managers, suggesting a potential shift in strategy as he prepares for Greg Abel to take over as CEO. Ultimately, Buffett’s cash accumulation reflects a desire for liquidity rather than a lack of confidence in the companies he’s selling.
