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Warren Buffett prefers stocks over cash and other takeaways from his annual letter to Berkshire shareholders


Published on 2025-02-22 20:21:15 - MarketWatch
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  • Warren Buffett, in his annual letter to shareholders, defends Berkshire's cash pile but says the company will always prefer equities when they're attractive.

Warren Buffett's annual letter to Berkshire Hathaway shareholders highlights his preference for stocks over cash, emphasizing the long-term benefits of equity investments despite short-term market fluctuations. He discusses the importance of patience in investing, noting that while cash provides safety and liquidity, it does not offer the growth potential that stocks do over time. Buffett also reflects on the performance of Berkshire's portfolio, mentioning significant investments in companies like Apple, which have contributed to substantial unrealized gains. He addresses the conglomerate's cash reserves, which have grown due to a lack of compelling investment opportunities, but reassures that this cash position is strategic, allowing Berkshire to act when opportunities arise. Additionally, he touches on the succession plan, expressing confidence in Greg Abel, who is set to take over as CEO, and discusses the enduring value of Berkshire's insurance operations, which continue to generate float for investment.

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