Buffett Retires, Berkshire Holds $381 Billion Cash Reserve
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14h ago
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Source: Fool
- Buffett's Transformational Success: Since acquiring Berkshire in 1965, Buffett transformed it from a struggling textiles manufacturer into a holding company, achieving an average annual return of 19.7% since 1965, significantly outperforming the S&P 500's 10.5%.
- Massive Returns from Apple Investment: Berkshire invested $38 billion in Apple between 2016 and 2023, and by 2024, this position was worth over $170 billion, representing more than half of the company's portfolio, showcasing its successful positioning in the tech sector.
- Strategic Cash Reserves: Berkshire currently holds a staggering $381 billion in cash, enough to acquire 477 companies in the S&P 500, ensuring that successor Abel can continue to drive growth strategies post-Buffett.
- Well-Prepared Successor: Abel has been with Berkshire since 1999 and was appointed vice chairman of non-insurance operations in 2018, gaining valuable experience working closely with Buffett, thus being well-prepared for the CEO role.
Analyst Views on BRK.A
Wall Street analysts forecast BRK.A stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BRK.A is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 750300.000
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About BRK.A
Berkshire Hathaway Inc. and its subsidiaries are engaged in diverse business activities, including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, services and retailing. Its segments include Insurance, Burlington Northern Santa Fe (BNSF), Berkshire Hathaway Energy (BHE), Pilot Travel Centers (Pilot), Manufacturing, McLane Company (McLane), and Service and retailing. The Insurance segment includes GEICO, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group. The BNSF segment includes the operation of railroad systems in North America. BHE segment offers regulated electric and gas utilities and real estate brokerage activities. Manufacturing segment manufacturers various products, such as industrial, consumer and building products. The McLane segment is engaged in wholesale distribution of groceries and non-food items. The Pilot segment is an operator of travel centers in North America and a marketer of wholesale fuel.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
