Berkshire 2025: Is Value Investing the Golden Rule for Retail Investors?
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On May 3rd, 2025 Berkshire Hathaway Annual Shareholders Meeting will take place.
Warren Buffett, now 94 years old, has confirmed he will attend in person. This year marks the 60th anniversary of his acquisition of Berkshire Hathaway, making it a symbolic milestone.
Looking back at Buffett’s 2025 shareholder letter, the numbers continue to be astonishing:
Compound Annual Growth Rate (CAGR) of Berkshire’s per-share market value from 1965 to 2024: 19.9%. Overall market value increase: 5,502,284%, or 55,000 times, outpacing the S&P 500’s growth by 390 times over the same period.
Reviewing Early US Stock Sales: Buffett Once Again Avoids a Market Crash
In his letter, Buffet reduced US equity exposure. Concentration in top five holdings (American Express, Apple, Bank of America, Chevron, Coca-Cola) dropped from 79% to 71% of the total equity portfolio.
Significant reduction in holdings of Citigroup (down 73.5%) and Bank of America (sold 117 million shares). Apple holdings were cut from 905 million shares to 300 million shares.
Massive Cash Deployment into US Treasuries: Does Treasuries Now Offer Greater Certainty?
Recently, it's said that Berkshire controls nearly 5% of the entire US Treasury bill market — more than the Federal Reserve’s holdings of similar securities.
As of the end of March, Berkshire had $334 billion in cash reserves, with more than 90% invested in short-term government bonds.
Of this, $14.4 billion worth of Treasury bills, with less than three months remaining to maturity, were classified as cash equivalents, while $286.47 billion in Treasury securities were listed as short-term investments. Combined, these holdings totaled $300.87 billion.
Despite His Cautious stance, Buffett Emphasized Compound Power and American Resilience
He pointed out that Berkshire has only paid out cash dividends once in the past 60 years, and it is precisely this reinvestment strategy that has allowed the company to grow into the giant it is today.
The resilience of American capitalism, despite its imperfections — encouraging individual investors to stay patient and let compounding work its magic.
$Berkshire Hathaway(BRK.B)$ $Berkshire Hathaway(BRK.A)$ $Tiger Brokers(TIGR)$
Buffett is sitting on a massive cash pile and scaling back on US equities. Should retail investors adopt a similar stance, prioritizing safety and liquidity?
Is value investing still the golden rule for long-term success, or does today's market require adapting Buffett’s methods?
In an age of AI, how relevant is Buffett’s approach for a new generation of investors?
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Berkshire 2025: Is Value Investing the Golden Rule for Retail Investors?
On May 3, the 2025 Berkshire Hathaway Annual Shareholders Meeting will take place. Why is this year's meeting drawing global attention? 94-Year-Old Buffett to Attend: This year marks the 60th anniversary of Warren Buffett’s acquisition of Berkshire Hathaway — a major milestone. At 94 years old, Buffett has confirmed he will attend in person. While his successor, Greg Abel, will take on a more prominent role during the event, Buffett is expected to be present throughout. This may very well be the last time he fully participates in the annual meeting.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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