Warren Buffett Cuts Apple, Bank Stakes, Builds $334 Billion Cash Reserve Amid Market Volatility

Warren Buffett, the 94-year-old CEO of Berkshire Hathaway, has amassed a record $334 billion in cash and cash equivalents, including Treasury bills, as part of a strategic shift amid market volatility. This cash reserve, which doubled in 2024, reflects his cautious stance on high equity valuations and limited attractive investment opportunities. Berkshire Hathaway significantly reduced its holdings in Apple and Bank of America in 2024, cutting its Apple stake by 67% to 300 million shares, with Apple trading at 30 times earnings, and its Bank of America stake by 34%. These moves, which saw a net sale of $134 billion in stocks last year, were driven by valuation concerns and tax considerations. Buffett’s strategy coincides with a U.S. stock market downturn, where the S&P 500 has fallen 9% and the Nasdaq Composite dropped 4% in a single day. Treasury yields, now over 4%, have made cash and bonds more attractive alternatives. Berkshire Hathaway’s stock has gained 9% this year, and the company is positioned to capitalize on potential future investment opportunities at lower valuations.