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Berkshire's Cash Stash Hits Historic High as Buffett Prepares Exit

Berkshire's Cash Stash Hits Historic High as Buffett Prepares Exit

Arabian Post08-05-2025

Berkshire Hathaway has amassed a record $347.7 billion in cash reserves, marking a significant milestone as Warren Buffett prepares to retire by the end of 2025. The conglomerate's substantial cash position reflects a cautious investment approach amid global economic uncertainties and a perceived lack of attractive acquisition opportunities.
Buffett, who has led Berkshire for over six decades, announced his retirement plans at the company's annual shareholder meeting in Omaha. He endorsed Vice Chairman Greg Abel as his successor, entrusting him with the leadership of the conglomerate and its vast cash holdings. Buffett expressed confidence in Abel's capabilities, stating that he shares the company's investment philosophy and commitment to shareholder value.
The decision to hold a substantial cash reserve is consistent with Berkshire's historical strategy of maintaining liquidity to capitalize on market downturns. Notably, similar cash accumulations occurred before the dot-com crash in 1999, the global financial crisis in 2007–2008, and the COVID-19 pandemic in 2019. Buffett has indicated that current market valuations do not present compelling investment opportunities, prompting the company to adopt a more conservative stance.
Despite the record cash holdings, Berkshire reported a 14% year-over-year decline in operating income, totaling $9.6 billion. This decrease was attributed to underperformance across several business units, reflecting broader economic challenges. However, the company's insurance division, particularly GEICO, demonstrated resilience, contributing positively to the overall financial performance.
Berkshire's investment portfolio remains heavily concentrated in a few key holdings. Apple Inc. continues to be the largest, accounting for approximately 28% of the portfolio, despite a reduction in shares held. Other significant investments include American Express, Bank of America, The Coca-Cola Company, and Chevron, collectively representing a substantial portion of the company's assets.
See also Revolut's $1.4B Profit Fuels Ambitious UK Banking Plans
As Buffett prepares to step down, he has taken measures to ensure a smooth transition and preserve the company's legacy. He has placed his 14% stake in Berkshire, valued at over $150 billion, into a trust managed by his children to prevent activist interference and maintain the company's strategic direction. Buffett has also reiterated his commitment to long-term equity investments, emphasizing that the majority of Berkshire's funds will remain allocated to equities, primarily in companies with substantial international operations.
The leadership transition marks a significant moment in the investing world, with Abel set to inherit not only the CEO role but also the responsibility of managing the company's extensive cash reserves. Analysts suggest that Abel's approach will likely mirror Buffett's disciplined investment philosophy, focusing on value-oriented acquisitions and maintaining financial flexibility to navigate future market conditions.

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World Bank slashes global growth forecast as trade tensions bite
World Bank slashes global growth forecast as trade tensions bite

Al Etihad

time5 hours ago

  • Al Etihad

World Bank slashes global growth forecast as trade tensions bite

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Export Opportunities: Using Dubai as a Global Trade Hub
Export Opportunities: Using Dubai as a Global Trade Hub

Hi Dubai

time10 hours ago

  • Hi Dubai

Export Opportunities: Using Dubai as a Global Trade Hub

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Ensure you're familiar with key documents like the Certificate of Origin, commercial invoice, packing list, and bill of lading. Mistakes here can delay shipments or block entry. Use Export Credit Insurance Protect your business against non-payment or political risks in overseas markets through providers like Etihad Credit Insurance (ECI) . Protect your business against non-payment or political risks in overseas markets through providers like . Take Advantage of Government Programs Explore support from initiatives like the Dubai Global program or Dubai Chamber International Offices, which provide matchmaking and international market guidance. Explore support from initiatives like the Dubai Global program or Dubai Chamber International Offices, which provide matchmaking and international market guidance. Get Localized Packaging & Certifications Research and meet destination country requirements, whether it's language, Halal certification, or eco-packaging, to avoid customs issues. Research and meet destination country requirements, whether it's language, Halal certification, or eco-packaging, to avoid customs issues. Build a Logistics Strategy Early Work with a reliable freight forwarder or logistics partner in Dubai (like DP World or Aramex) to streamline shipping, warehousing and cross-border compliance. Work with a reliable freight forwarder or logistics partner in Dubai (like DP World or Aramex) to streamline shipping, warehousing and cross-border compliance. Stay Informed About Trade Agreements Take advantage of UAE's CEPA agreements (with India, Indonesia, Turkey, etc.) for reduced tariffs and easier market entry. The world is shifting, and Dubai is perfectly poised to lead the way. As global demand surges and new markets open up, now is the time for Dubai's entrepreneurs, creatives, and innovators to step confidently onto the world stage. With its unmatched connectivity, business-friendly climate, and growing network of trade partnerships, Dubai doesn't just support exports—it accelerates them. Whether you're shipping saffron to Scandinavia or software to Singapore, your gateway is right here. So take that first step. The infrastructure is in place, the support is strong, and the opportunity is real. From the heart of the UAE to every corner of the globe, your export journey can start today—and it can start in Dubai. Also Read: Import and Export Business in Dubai: Set-Up Guide Looking to set up an import-export business in Dubai? Here are the benefits and hurdles of setting up a successful import-export business. Can Foreigners Really Own 100% of a Business in the UAE? Here's the Truth Explore the evolution of foreign ownership restrictions in the UAE, from their historical roots to the groundbreaking 2020 reforms and the sectors that still require local ownership. 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China's export growth slows last month as tariffs take toll
China's export growth slows last month as tariffs take toll

Gulf Today

timea day ago

  • Gulf Today

China's export growth slows last month as tariffs take toll

China's export growth slowed to a three-month low in May as US tariffs slammed shipments, while factory-gate deflation deepened to its worst level in two years, heaping pressure on the world's second-largest economy on both the domestic and external fronts. US President Donald Trump's global trade war and the swings in Sino-US trade ties have in the past two months sent Chinese exporters, along with their business partners across the Pacific, on a roller coaster ride and hobbled world growth. Underscoring the US tariff impact on shipments, customs data showed that China's exports to the US plunged 34.5 per cent year-on-year in May in value terms, the sharpest drop since February 2020, when the outbreak of the COVID-19 pandemic upended global trade. Total exports from the Asian economic giant expanded 4.8 per cent year-on-year in value terms last month, slowing from the 8.1 per cent jump in April and missing the 5.0 per cent growth expected in a Reuters poll, customs data showed on Monday, despite a lowering of US tariffs on Chinese goods which had taken effect in early April. 'It's likely that the May data continued to be weighed down by the peak tariff period,' said Lynn Song, chief economist for Greater China at ING. Song said there was still front-loading of shipments due to the tariff risks, while acceleration of sales to regions other than the United States helped to underpin China's exports. Imports dropped 3.4 per cent year-on-year, deepening from the 0.2 per cent decline in April and worse than the 0.9 per cent downturn expected in the Reuters poll. Exports had surged 12.4 per cent year-on-year and 8.1 per cent in March and April, respectively, as factories rushed shipments to the US and other overseas manufacturers to avoid Trump's hefty levies on China and the rest of the world. While exporters in China found some respite in May as Beijing and Washington agreed to suspend most of their levies for 90 days, tensions between the world's two largest economies remain high and negotiations are underway over issues ranging from China's rare earths controls to Taiwan. Trade representatives from China and the US are meeting in London on Monday to resume talks after a phone call between their top leaders on Thursday. China's imports from the US also lost further ground, dropping 18.1 per cent from a 13.8 per cent slide in April. Zichun Huang, economist at Capital Economics, expects the slowdown in exports growth to 'partially reverse this month, as it reflects the drop in US orders before the trade truce,' but cautions that shipments will be knocked again by year-end due to elevated tariff levels. China's exports of rare earths jumped sharply in May despite export restrictions on certain types of rare earth products causing plant closures across the global auto supply chain. The latest figures do not distinguish between the 17 rare earth elements and related products, some of which are not subject to restrictions. A clearer picture of the impact of the curbs on exports will only be available when more detailed data is released on June 20. China's May trade surplus came in at $103.22 billion, up from the $96.18 billion the previous month. Other data, also released on Monday, showed China's imports of crude oil, coal, and iron ore dropped last month, underlining the fragility of domestic demand at a time of rising external headwinds. Beijing in May rolled out a series of monetary stimulus measures, including cuts to benchmark lending rates and a 500 billion yuan low-cost loan programme, aimed at cushioning the trade war's blow to the economy. China's markets showed muted reaction to the data. The blue-chip CSI300 Index climbed 0.29 per cent and the benchmark Shanghai Composite Index was up 0.43 per cent. Producer and consumer price data, released by the National Bureau of Statistics on the same day, showed that deflationary pressures worsened last month. The producer price index fell 3.3 per cent in May from a year earlier, after a 2.7 per cent decline in April and marked the deepest contraction in 22 months. Cooling factory activity also highlights the impact of US tariffs on the world's largest manufacturing hub, dampening faster services growth as suspense lingers over the outcome of US-China trade talks. Retail sales growth slowed last month as spending continued to lag due to job insecurity and stagnant new home prices. These headwinds were evident in China's car sales for May, which grew 13.9 per cent year-on-year, slowing from a 14.8 per cent increase the previous month, data from the China Passenger Car Association showed. Sluggish domestic demand and weak prices have weighed on China's economy, which has struggled to mount a robust post-pandemic recovery amid a prolonged property slump and has relied on exports to underpin growth. Reuters

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