Where does Berkshire Hathaway keep its cash?
As of Dec. 31, Berkshire held an astounding $133.4 billion in Treasury bills, with yields in the neighborhood of 5% to 5.4%. If yields remain on the low end of that range throughout 2024 and Berkshire maintains its current position, the company will generate about $7 billion from those investments.
His fortune is largely tied to his investment company.
The vast majority of Buffett's net worth is tied to Berkshire Hathaway, his publicly traded conglomerate that owns businesses like Geico and See's Candies and holds multibillion-dollar stakes in companies like Apple and Coca-Cola.
“What we'd really like to do is buy great businesses,” he said. “If we could buy a company for $50 billion or $75 billion, $100 billion, we could do it.” “It would be easier to do with a private company,” he said. “And there aren't very many that are big.
He follows a simple investing strategy which involves buying profitable businesses with steady growth and strong management teams. He especially likes companies returning money to shareholders through dividends and stock buybacks, which helps Berkshire compound its money more quickly.
Full-year operating earnings totaled $37.4 billion, a 21% increase from 2022. Berkshire's cash and U.S. Treasury holdings rose to a record $167.6 billion at the end of 2023 with $133.4 billion in Treasurys. In the third quarter, the company's cash hoard had totaled $157.2 billion.
- American Express: 20.6% stake. ...
- Ally Financial: 9.6% Stake. ...
- Bank of America: 13% Stake. ...
- Capital One: 3.3% Stake. ...
- Citigroup: 2.9% Stake. ...
- Nu Holdings: 2.3% Stake.
By all accounts, Buffett lives a frugal and simple lifestyle, and as such chooses to drive a 2014 Cadillac XTS. At that end of the day, it's a chunk of metal and it hardly defines who you are.
What Berkshire is currently doing with its cash hoard. In the near term, Buffett appears content with holding the majority of Berkshire's cash in Treasury bills -- a short-term security backed by the U.S. Treasury Department with a maturity of one year or less.
Total debt on the balance sheet as of December 2023 : $128.27 B. According to Berkshire Hathaway 's latest financial reports the company's total debt is $128.27 B. A company's total debt is the sum of all current and non-current debts.
He owns a small bit of each in his portfolio for Berkshire, too. The two investments held in Berkshire Hathaway's portfolio that Buffett recommends more than anything else are two S&P 500 index funds. The SPDR S&P 500 ETF Trust (SPY -1.00%) and the Vanguard S&P 500 ETF (VOO -0.97%). Image source: The Motley Fool.
What percent of Berkshire is in cash?
Currently Berkshire has about 65% of its liquid asset in Equity Securities (Stocks), 30% in Cash and Cash Equivalents (Cash), and 4% in Fixed Maturity Securities (Bonds).
Berkshire Hathaway annual free cash flow for 2023 was $29.787B, a 36.1% increase from 2022. Berkshire Hathaway annual free cash flow for 2022 was $21.886B, a 16.31% decline from 2021. Berkshire Hathaway annual free cash flow for 2021 was $26.151B, a 2.28% decline from 2020.
Berkshire Hathaway is a holding company run by Warren Buffett that owns a diverse range of private businesses and significant minority interests in public companies such as Apple.
Warren Buffett typically does not give money to individuals, although he frequently donates to charities. However, he has in the past forwarded individual requests for money to his sister, Ms. Doris Buffett, who operates an organization called the Sunshine Lady Foundation.
Buffett takes an entirely different approach. Berkshire held more than $360 billion of stocks, $167 billion of cash (mostly Treasury bills), and just $24 billion of bonds at the end of 2023. Nearly all those investments were held at its insurance unit.
Berkshire Hathaway is a diverse holding company with well-known subsidiaries like GEICO and Dairy Queen. The company's top three individual shareholders are Warren Buffett, Susan Buffett, and Ronald Olson. The three main institutional shareholders are Vanguard, BlackRock, and State Street.
Bank of America (BAC)
We'll start with Buffett's favorite bank, and his largest bank holding. That would be Bank of America (NYSE:BAC). Currently, Berkshire Hathaway owns more than one billion shares of BAC stock, a stake that's valued at $35 billion. Buffett has repeatedly praised Bank of America CEO Brian Moynihan.
In fact, Buffett took out a 30-year mortgage in 1971 when he bought a vacation home in Laguna Beach, California.
Trump owns a classic Rolls-Royce Silver Cloud. Trump has said that he enjoys driving this car on special occasions. The Silver Cloud has beautiful flowing lines, a big grill, and a sloping back. It floats down the street with the beauty and grace of the rich, powered by a 6.2-liter V8.
"My flip phone is permanently gone," he said in an interview with CNBC. Buffett has been a long-term user of a $20 ( ₹1,438 approximately) Samsung SCH-U320 flip phone. Now, he is a proud owner of an iPhone 11. The billionaire investor admitted that he uses his new iPhone "as a phone".
Where does Warren Buffet have homes?
He still lives in a home that he purchased in 1958 for $31,500 in Omaha, Nebraska – the city where he was born. Buffett did make one splurge in real estate. While married to his first wife, Susan Thompson, he bought a beach house in Laguna Beach where the family of five would vacation and spend holidays.
Cash on Hand as of December 2023 : $167.64 B
According to Berkshire Hathaway 's latest financial reports the company has $167.64 B in cash and cash equivalents. A company's cash on hand also refered as cash/cash equivalents (CCE) and Short-term investments, is the amount of accessible money a business has.
Warren Buffett's $541 million gift to his foundation topped the list of supersized charitable donations in 2023. Warren Buffett, CEO of Berkshire Hathaway. The Chronicle of Philanthropy's annual list of the biggest charitable donations from individuals or their foundations totaled more than $3.5 billion in 2023.
Likely the biggest philanthropist ever, Buffett's lifetime giving tops $51.5 billion–placing him at the top of Forbes' 2023 list of America's most generous philanthropists.
The primary driver behind Berkshire Hathaway's investment loss is its majority stake in tech giant Apple Inc. (NASDAQ:AAPL). Apple's shares declined by over 11% in the third quarter, causing Buffett to incur an investment loss of over $24 billion during this period.
