In his latest annual letter, Warren Buffett reassures Berkshire Hathaway shareholders of the company's steadfast commitment to equity investments. Despite holding a record-breaking $334.2 billion in cash, cash equivalents, and short-term U.S. Treasury bills at the end of 2024, Buffett emphasizes that the majority of the conglomerate’s assets remain invested in equities. The fourth-quarter operating earnings surged by over 70% year-over-year, reaching $14.53 billion. Buffett underscores that while marketable equities saw a decline from $354 billion to $272 billion, the value of non-quoted controlled equities increased and continues to outweigh the marketable portfolio.

Buffett's letter highlights the company's strategic focus on long-term equity investments. He notes that Berkshire has significant stakes in prominent companies such as Apple, Bank of America, Coca-Cola, Chevron, and American Express. Despite the substantial cash reserves, Buffett remains unwavering in his belief that equities are the best place for the company's capital. He argues that Berkshire will always prioritize investing in quality businesses over holding cash-equivalent assets. This philosophy reflects Buffett's long-standing investment strategy, which has been instrumental in Berkshire's success.

The letter also addresses concerns about Berkshire's cash position, clarifying that this does not signal a shift away from equity investments. Buffett reiterates that the company will continue to deploy the majority of its capital into equities, primarily American ones, though many of these companies have significant international operations. This approach ensures that Berkshire remains aligned with its core principle of investing in strong, profitable businesses.

Buffett concludes by affirming Berkshire's dedication to equity investments. He assures shareholders that the company will consistently allocate a substantial portion of its capital to equities, whether through controlling interests or partial ownerships. This commitment remains unchanged, reflecting the enduring belief that owning good businesses is more valuable than holding cash-equivalent assets. Through this unwavering focus, Berkshire aims to deliver sustained value to its shareholders.