Buffett’s Berkshire Hathaway Boasts All-Time High Cash Reserves: Nowhere to Invest?

Berkshire Hathaway, the investment company of “Oracle of Omaha” Warren Buffett, recorded its all-time highest cash holdings, continuing its strong performance in the fourth quarter of last year.

However, Buffett stated that the chances of achieving the same “eye-popping” results in the coming years are virtually nonexistent.

According to the earnings report released by Berkshire Hathaway on the 24th (local time), the business profit from the fourth quarter of last year was $8.481 billion, showing a 28% increase from the same period in the previous year ($6.625 billion).

The quarterly net revenue also recorded more than double the performance from the previous year, with $37.574 billion, compared to the $18.08 billion from last year. The annual business profit from last year recorded $37.35 billion, showing a 21% increase from the previous year ($30.853 billion).

Thanks to the strong performance, the company also achieved record-high cash holdings. At the end of last year’s fourth quarter, the cash holdings were $167.6 billion, surpassing the $157.2 billion recorded at the end of the previous quarter and claiming a new record.

Buffett told his shareholders in an annual letter, “The sales and profit performance in the insurance business last year was excellent” and “There is still lots of room for growth.”

However, he mentioned that the market competition is becoming more intense daily, stating that it would be difficult to expect the same high growth in business performance for the next few years.

Buffett stated, “Only a handful of companies can move the needle for Berkshire. There are virtually no meaningful options to invest Berkshire’s capital in markets outside the U.S.”