Warren Buffett is rapidly dumping stocks and stacking cash. What’s he planning for?

Warren Buffett is selling off billions in stocks and hoarding more cash than ever, but no one knows why. The 94-year-old Berkshire Hathaway CEO has unloaded over $134 billion worth of equities in 2024 alone, cutting deep into his company’s biggest holdings.

At the same time, Warren is sitting on an all-time high of $334 billion in cash, even as US interest rates are expected to drop. His 2024 annual letter, released on Saturday, was supposed to answer the biggest question on investors’ minds: Why is Berkshire offloading stocks at record speed?

But instead of an explanation, Warren doubled down on his love for equities, writing, “Despite what some commentators currently view as an extraordinary cash position at Berkshire, the great majority of your money remains in equities. That preference won’t change.”

His actions, however, tell a different story, and this is the longest continuous selling streak in Berkshire’s history.

In total, Berkshire sold $143 billion worth of stocks throughout 2024, while buying just $9.2 billion, making it one of his most aggressive divestment years. This sell-off was led by reductions in Apple and Bank of America, two of Berkshire’s largest stock positions.

Warren Buffett breaks an investment pattern

The fourth quarter of 2024 was the first time in over a decade that Berkshire bought back zero shares, and Warren confirmed that the company had not repurchased any stock in early 2025 either. This was despite Berkshire posting a record 27% rise in operating earnings.

“Berkshire shareholders can rest assured that we will forever deploy a substantial majority of their money in equities – mostly American equities although many of these will have international operations of significance. Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses, whether controlled or only partially owned,” Warren wrote in his letter to the shareholders.

But after selling more stocks than he has in years, piling up a cash hoard bigger than the GDP of most countries, and refusing to buy even his own company’s shares, many aren’t convinced.

His 2024 sell-off comes in the middle of one of the strongest stock market rallies in years. The S&P 500 surged over 20% for two consecutive years, and stocks remain near all-time highs. Yet, Warren—who has consistently outperformed the stock market for years now—isn’t buying. He’s selling.

A strategy for Greg Abel? Or a warning sign?

At Berkshire’s 2023 annual meeting, Warren shocked investors by announcing that Greg Abel, his long-time vice chairman, would take over all investment decisions, including control over Berkshire’s $368 billion stock portfolio.

Some analysts believe the cash piling is about Warren preparing Berkshire for Abel’s leadership. By liquidating stocks, Warren may be giving Abel a clean slate, making sure his successor has the flexibility to make big decisions without being tied to Warren’s legacy investments.

Warren himself hinted at Abel’s influence in his latest letter, saying, “Often, nothing looks compelling; very infrequently we find ourselves knee-deep in opportunities. Greg has vividly shown his ability to act at such times as did Charlie.”

That comparison to Charlie Munger, Warren’s late right-hand man, was another big sign of his endorsement of Abel’s decision-making skills. 

Despite his massive stock sell-offs, Warren is still active in one area: Japan. Berkshire has been steadily increasing its stakes in five Japanese trading houses, a position Warren started nearly six years ago.

Unlike his American holdings, Warren made it clear that he plans to keep expanding in Japan, writing in his letter that: “Over time, you will likely see Berkshire’s ownership of all five increase somewhat.”

Berkshire is now the biggest taxpayer in the US

Warren had plenty to say about taxes. In 2024, Berkshire reportedly paid $26.8 billion in corporate income taxes, making it the biggest taxpayer in the United States. That sum accounted for 5% of all corporate tax revenue collected by the US government.

In his letter, Warren took the opportunity to warn Washington about reckless spending, writing, “Spend it wisely. Take care of the many who, for no fault of their own, get the short straws in life. They deserve better. And never forget that we need you to maintain a stable currency and that result requires both wisdom and vigilance on your part.”

He also reminded lawmakers that the value of the US dollar isn’t invincible, adding, “Paper money can see its value evaporate if fiscal folly prevails. In some countries, this reckless practice has become habitual, and in our country’s short history, the US has come close to the edge.”

This isn’t the first time Warren has warned about inflation and reckless government spending, but with Berkshire now sitting on its largest-ever cash reserve, his words carry even more weight.

Warren’s 2024 shareholder letter ended on an unusual note. Instead of discussing future plans, he made a rare joke about his own lack of skills outside investing.

“Lacking such assets as athletic excellence, a wonderful voice, medical or legal skills or, for that matter, any special talents, I have had to rely on equities throughout my life,” Warren Buffett wrote.

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