BUSINESS

Buffett's Berkshire Hathaway Shines Amid Market Turmoil

Nebraska, Omaha, USATue Mar 18 2025
The financial world is buzzing with news about Berkshire Hathaway. This company has been making waves, with its stock prices hitting new highs this year. The Class A and Class B shares have been soaring, even as many other stocks in the S&P 500 have been struggling. This success comes despite a tough market environment. One of the big reasons behind this success is the company's massive cash reserve. Berkshire Hathaway is sitting on a whopping $334 billion in cash. This pile of money came from selling off stocks over the past couple of years. The timing was perfect, as the market took a hit in 2025. In 2024 alone, Berkshire sold off more than $134 billion worth of stocks. This move was largely driven by reducing its stakes in Apple and Bank of America, two of its biggest investments. Investors have been flocking to Berkshire Hathaway, seeing it as a safe haven in volatile times. The company's strategy of holding onto cash and selling stocks at the right time has paid off big time. This approach has allowed Berkshire to weather the storm while others have been left reeling. Warren Buffett, the CEO, has been a big part of this success story. In his recent letter to shareholders, he highlighted the company's focus on equities. Berkshire owns pieces of some of the world's biggest and most profitable companies. These include household names like Apple, American Express, Coca-Cola, and Moody’s. Buffett's approach to investing is humble and straightforward. He doesn't play favorites when it comes to choosing stocks. He invests in whatever offers the best returns, whether it's a small stake in a large company or controlling a whole business. Buffett's leadership style is also noteworthy. His annual salary has been a modest $100, 000 for over 40 years. He doesn't take a bonus or any form of equity-based compensation. This is a stark contrast to the average CEO, who often rakes in much more. Buffett's total compensation is far less than what most public company CEOs earn. This humble approach to leadership is a big part of what makes Berkshire Hathaway tick. The company's recent proxy also shed some light on its operations. It showed that Buffett's salary is even lower than the average salary of a Berkshire employee. This is a clear sign of his commitment to the company and its shareholders. It's a reminder that success isn't always about the big bucks. Sometimes, it's about doing what's right for the company and its people.

questions

    Why is Berkshire Hathaway's performance being compared to the S&P 500, and are there other indices that might provide a more relevant benchmark?
    Could the massive cash reserve be a sign of an impending economic collapse that Berkshire is preparing for?
    What role does Berkshire's diversified portfolio play in its ability to weather market volatility?

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