Buffett Increase Cash Reserves to $334 Billion, Sells Bank Shares

Warren Buffett has addressed concerns among Berkshire Hathaway shareholders regarding the company's record cash reserves of $334 billion, which have grown due to significant stock sales, including $5.5 billion in Bank of America shares. In his annual letter, Buffett reassured investors that his preference remains firmly with equities, stating he will always favor ownership of good businesses over cash-equivalent assets. Although Berkshire has reduced its equity holdings by $82 billion, Buffet emphasized that the majority of shareholder money is still invested in stocks, particularly U.S. equities. He acknowledged the current market's challenges, including high valuations, which have limited his ability to make large acquisitions. Despite the massive cash pile, Buffett remains committed to deploying a majority of funds into quality businesses, indicating that this strategy is crucial for long-term success. He reinforced that his investing philosophy has not changed, even in light of recent asset liquidations.