Berkshire Hathaway, the investment company led by Warren Buffett, recently announced its Q2 financial report for 2024. The report reveals that after reducing its holdings in stocks such as Apple, its cash reserves have reached a staggering $277 billion, surpassing even the holdings of U.S. Treasury bonds by the Federal Reserve. Elon Musk commented on this situation, stating that Buffett is almost equivalent to the Federal Reserve.
(Background Summary:
Buffett significantly cut his stake in Apple, with Berkshire holding a record high of $9 trillion in cash, expressing a bearish outlook on the U.S. economy and withdrawing investments early.)
On August 3, Warren Buffett’s Berkshire Hathaway released its Q2 financial report for 2024, showing revenues of $93.653 billion, a year-on-year increase of 1.24%, exceeding market expectations of $85.92 billion. The net profit stood at $30.35 billion, significantly higher than the market forecast of $17.786 billion.
What caught the market’s attention even more was that in this financial report, Berkshire reduced its holdings in a substantial amount of stocks, including Apple and Bank of America, cashing out approximately $90 billion in total. Consequently, a key opinion leader with over 700,000 followers on Twitter pointed out that after selling stocks, Berkshire currently possesses cash reserves totaling $277 billion. This amount is sufficient to acquire any one of the companies, including Netflix, Salesforce, Toyota, Adobe, or Hermès. Notably, of Berkshire’s $277 billion, $234.6 billion consists of short-term U.S. Treasury bonds, which is close to Taiwan’s holdings of U.S. bonds ($257.3 billion, ranking twelfth among countries).
Musk: Buffett is almost equivalent to the Federal Reserve
In response to Berkshire’s astonishing financial report, Tesla founder Elon Musk shared his thoughts on the X platform, commenting on the situation where Berkshire’s holdings of U.S. Treasury bonds exceed those of the Federal Reserve. Musk praised Buffett in a subsequent tweet.
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