Warren Buffett’s Annual Letter and Berkshire Earnings Come Out Saturday—What To Expect | Global News Avenue

Warren Buffett’s Hathaway (Brk.A) (bk.b) Its fourth-quarter earnings are scheduled to be reported Saturday. Investors not only want to tap into the financial situation of the company, but are also keen to await Buffett’s annual letter to shareholders that may provide comments on investment and the economy.

This is what investors are going to watch.

Has Berkshire’s record cash pile expanded further?

At the end of the third quarter of 2024, Berkshire sat down Record $325.2 billion Cash is equivalent to cash, including over $288 billion in Treasury bills.

Saturday’s earnings report will reveal whether the hiding has expanded further in the last three months of 2024. More importantly, investors will want to know how Berkshire plans to deploy the cash.

Buffett said in a shareholder letter last year that Berkshire will continue to invest in the U.S. stock market, but Lamenting the lack Investment opportunities in the United States and around the world Berkshire’s Philosophy of Value.

Reasons for Buffett’s portfolio decision

Berkshire Hathaway sold some major stock positions last year, including its largest Holding Apple Inc.AAPL). Buffett cut Berkshire’s stake in Apple from 900 million shares at the end of 2023 to 300 million shares at the end of last year.

Berkshire has also uninstalled Large chunks of shares At Bank of AmericaBAC). exist Its latest quarterly documentsThe company also revealed the cuts to Citigroup (c) and the capital one (COF). The upcoming shareholder letter could clarify the reasons behind some portfolio decisions.

For example, in last year’s letter, Buffett explained his firm commitment to long-term investment in Coca-Cola (That) and American Express (AXP). He also wrote articles about Occupy Oil (oxygen) and investments in five Japanese trade houses he expects to “maintain indefinitely”.

Meanwhile, it also made some new investments last year – some worked, some didn’t. Berkshire eventually sold all shares in Ulta Beauty (Ulta) Two quarters Purchasing stocks is a non-characteristic move that can be explained in this year’s letters.

Investment in the economy and comments

Buffett issued a strong warning in his previous letter that investors take too much risk during a period of market boom.

He wrote in February 2024 before reiterating one of Berkshire’s core investment principles: “For any reason, the market is now more like a casino than I was younger than I was younger than I was younger. .” : “Never risk losing capital forever.”

Investors will seek clues from Buffett about his views on the market and today’s economy. President Trump’s Recent action About tariffs May reignite inflation This year, it tripped over Wall Street more than once.