Warren Buffett’s savvy investment strategy is paying off big time. This year, while the overall market is struggling, Berkshire Hathaway, Buffett’s company, is up nearly 16%.
A $78 Billion Gamble
The secret? Over the past six years, Buffett has invested a staggering $77.8 billion in buying back Berkshire Hathaway shares. This massive self-investment has proven incredibly lucrative as the company’s stock outperforms the S&P 500, which is down about 3%. He paused these buybacks late last year, suggesting he might be less keen on finding more bargains. Berkshire’s diverse holdings in insurance, railroads, and energy have also contributed to the strong performance.
Shifting Strategies
Recently, Buffett has made some significant shifts in his investment portfolio. He sold off $5.5 billion in Bank of America shares in late 2024. Currently, he’s sitting on a massive cash reserve of $334 billion and has recently invested in five major Japanese trading companies: Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo.
Succession Planning
While the 94-year-old Buffett shows no signs of retiring as CEO, he’s already put a succession plan in place. His children will oversee a charitable trust that will distribute the vast majority (99.5%) of his $150 billion fortune after his death. Greg Abel is slated to take over as CEO when the time comes.
Disclaimer: This information is for general knowledge and shouldn’t be considered financial advice. Always do your own research before making any investment decisions.
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