Investment News writes "Berkshire Hathaway is piling cash. Advisors say that'​s not such a bad thing," which tells us, "​Why did the so-​called '​Oracle of Omaha' completely sell out of his S&​P 500 index funds? And what'​s the deal with all that cash on his balance sheet? Inquiring financial advisors are dying to know." They explain, "The report also revealed that Berkshire Hathaway'​s cash stockpile ended 2024 at a hefty $​334 billion, or nearly 30 percent of the investment company'​s total assets. Moreover, that cash position doubled over the course of last year, helped along by significant sales in its publicly traded equities portfolio of big-​name stocks like Bank of America (​BAC) and Apple (​AAPL).... The 94-​year-​old Buffett didn’​t offer much insight into his rational for holding all that cash, nor did he give his thoughts on current market conditions. In his accompanying letter to shareholders, he noted that, 'Despite what some commentators currently view as an extraordinary cash position at Berkshire, the great majority of your money remains in equities.' He added: '​That preference won’​t change.'" The piece adds, "Moreover, regarding his cash position, Buffett reiterated his long-​held stance that '​Berkshire will never prefer ownership of cash-​equivalent assets over the ownership of good businesses, whether controlled or only partially owned.' Eric Amzalag, founder of Peak Financial Planning, holds Berkshire B-​shares in 80 percent of his client portfolios. In his view, Berkshire has maintained an elevated cash position for quite some time, so he does not consider Buffett'​s decision to reduce exposure to the market-​cap weighted index last year as being particularly bearish. Instead, he interprets it as a '​prudent investment management action.'"

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