
Berkshire's Cash Stash Hits Historic High as Buffett Prepares Exit
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.
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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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Dubai Eye
6 hours ago
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Kose said while things could get worse, trade was continuing and China, India and others were still delivering robust growth. Many countries were also discussing new trade partnerships that could pay dividends later, he said. The World Bank said the global outlook had "deteriorated substantially" since January, mainly due to advanced economies, which are now seen growing by just 1.2 per cent, down half a percentage point, after expanding by 1.7 per cent per cent in 2024. The US forecast was slashed by nine-tenths of a percentage point from its January forecast to 1.4 per cent, and the 2026 outlook was lowered by four-tenths of a percentage point to 1.6 per cent. Rising trade barriers, "record-high uncertainty" and a spike in financial market volatility were expected to weigh on private consumption, trade and investment, it said. The White House pushed back against the forecast, citing recent economic data that it said pointed to a stronger economy. 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ARN News Center
19 hours ago
- ARN News Center
World Bank cuts global growth forecast as trade tensions heighten uncertainty
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The World Bank is the latest body to cut its growth forecast as a result of Trump's erratic trade policies, although U.S. officials insist the negative consequences will be offset by a surge in investment and still-to-be approved tax cuts. It stopped short of forecasting a recession, but said global economic growth this year would be the weakest outside of a recession since 2008. By 2027, global gross domestic product growth was expected to average just 2.5 per cent, the slowest pace of any decade since the 1960s. The report forecast that global trade would grow by 1.8 per cent in 2025, down from 3.4 per cent in 2024 and roughly a third of its 5.9 per cent level in the 2000s. The forecast is based on tariffs in effect as of late May, including a 10 per cent U.S. tariff on imports from most countries. It excludes increases that were announced by Trump in April and then postponed until July 9 to allow for negotiations. 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By 2027, developing economies' per capita GDP would be 6 per cent below pre-pandemic levels, and it could take these countries - minus China - two decades to recoup the economic losses of the 2020s. Mexico, heavily dependent on trade with the U.S., saw its growth forecast cut by 1.3 percentage points to 0.2 per cent in 2025. The World Bank left its forecast for China unchanged at 4.5 per cent from January, saying Beijing still had monetary and fiscal space to support its economy and stimulate growth.


Al Etihad
a day ago
- Al Etihad
World Bank slashes global growth forecast as trade tensions bite
10 June 2025 17:49 WASHINGTON (REUTERS)The World Bank on Tuesday slashed its global growth forecast for 2025 by 0.4 percentage point to 2.3%, saying that higher tariffs and heightened uncertainty posed a "significant headwind" for nearly all its twice-yearly Global Economic Prospects report, the bank lowered its forecasts for nearly 70% of all economies - including the United States, China and Europe, as well as six emerging market regions - from the levels it projected just six months ago before US President Donald Trump took has upended global trade with a series of on-again, off-again tariff hikes that have increased the effective US tariff rate from below 3% to the mid-teens - its highest level in almost a century - and triggered retaliation by China and other World Bank is the latest body to cut its growth forecast as a result of Trump's erratic trade policies, although US officials insist the negative consequences will be offset by a surge in investment and still-to-be approved tax bank stopped short of forecasting a recession, but said global economic growth this year would be its weakest outside of a recession since 2008. By 2027, global gross domestic product growth was expected to average just 2.5%, the slowest pace of any decade since the report forecast that global trade would grow by 1.8% in 2025, down from 3.4% in 2024 and roughly a third of its 5.9% level in the 2000s. The forecast is based on tariffs in effect as of late May, including a 10% US tariff on imports from most countries. It excludes increases announced by Trump in April and then postponed until July 9 to allow for bank said global inflation was expected to reach 2.9% in 2025, remaining above pre-COVID levels, given tariff increases and tight labor it said the risk of a global recession was less than 10%.The World Bank said the global outlook had "deteriorated substantially" since January, mainly due to advanced economies, now seen growing by just 1.2%, down half a point, after expanding 1.7% in US forecast was slashed by 0.9 percentage point from its January forecast to 1.4%, and the 2026 outlook was lowered by 0.4 percentage point to 1.6%. Rising trade barriers, "record-high uncertainty" and a spike in financial market volatility were expected to weigh on private consumption, trade and investment, it estimates in the euro area were cut by 0.3 percentage point to 0.7% and in Japan by 0.5 percentage point to 0.7%.It said emerging markets and developing economies were expected to grow by 3.8% in 2025 versus 4.1% in January's countries would suffer the most, the report said. By 2027 developing economies' per capita GDP would be 6% below pre-pandemic levels, and it could take these countries - minus China - two decades to recoup the economic losses of the heavily dependent on trade with the US, saw its growth forecast cut by 1.3 percentage points to 0.2% in 2025. The World Bank left its forecast for China unchanged at 4.5% from January, saying Beijing still had monetary and fiscal space to support its economy and stimulate growth.