Warren Buffett had a busy year in 2024. The 94-year-old CEO of Berkshire Hathaway sold a lot of stocks, built up a huge cash pile, and updated his plans for giving away his money after he dies. In February, Buffett wrote a letter to Berkshire shareholders.
He paid tribute to his longtime business partner Charlie Munger, who died in 2023 at age 99. Buffett called himself the “general contractor” who carried out Munger’s vision for Berkshire. In May, thousands of Berkshire shareholders came to Omaha for the company’s annual meeting.
Buffett told them he had sold a big chunk of his Apple stock in the first quarter. He also warned about the national debt and budget deficit. Throughout the year, Buffett and his team sold $133 billion of stocks but only bought $6 billion worth.
This increased Berkshire’s cash reserves to over $300 billion. They were cautious because they thought the stock market was overvalued. Buffett made some big changes to Berkshire’s stock portfolio.
Buffett’s strategic 2024 moves
He reduced the Apple stake from $174 billion to under $70 billion. He also sold over $10 billion of Bank of America stock.
These sales gave Berkshire more flexibility. Buffett continued his tradition of giving to charity. In June, he donated $5.3 billion of Berkshire stock to five foundations.
In November, he gave another $1.2 billion. These gifts are part of his pledge to give away 99% of his fortune. In November, Buffett wrote a letter to shareholders about his estate plans.
He said he will put almost all his money into a foundation. His three children will distribute it to help people in need. Buffett also named backup trustees in case his children don’t outlive him.
As Buffett looks at the huge growth of wealth in America, he notes that “billions became the new millions.” His decisions and donations in 2024 will have a big impact on his legacy and the financial world.
