Berkshire Posts Gain in Profits, Boosted by U.S. Treasury Holdings

Warren E.Buffett, the famed investor known for his enthusiasm for undervalued stocks and businesses, is feeling bullish these days about a traditionally staid investment: Treasury bills.The cash stockpile held by Berkshire Hathaway, his sprawling multinational conglomerate, rose past $334 billion at the end of last year, including $286 billion in short-term Treasuries.

The conglomerate more than doubled its Treasury holdings from a year earlier, thanks in part to the cash generated by selling a big chunk of its stake in Apple.In his annual report and letter to shareholders, released on Saturday, Mr.Buffett defended Berkshire’s hoard, which he has said he was happy to keep building up unless or until a potentially lucrative investment opportunity arose.“Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses,” Mr.

Buffett wrote.But the steady interest rates offered by Treasury bills helped stabilize Mr.Buffett’s empire during a year in which more than half of the nearly 200 businesses it operates saw their earnings drop.

Berkshire Hathaway had net earnings last year of $90 billion, a decline from the more than $96 billion it generated a year earlier.The company’s operating earnings — the metric Mr.Buffett prefers because it excludes paper losses and gains on investments that have not been sold — were $47 billion in 2024, up from $37 billion in 2023.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.

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