Warren Buffett’s 2025 Shareholder Letter: Big Moves, Long-Term Bets & Lessons from Mistakes
Warren Buffett’s much-anticipated annual letter to Berkshire Hathaway shareholders has just dropped—and, as always, it’s packed with wisdom, market insights, and future strategies. Here’s a breakdown of the major highlights:
1. Cash Pile Grows, But Equities Remain King
Despite Berkshire’s record-breaking $334.2 billion in cash and equivalents (more than double the $163.3 billion from 2023), Buffett reassured investors that “the great majority” of their money remains invested in equities.
Key moves from last year:
• Bought $9.2 billion worth of stocks.
• Sold off over $143 billion in equities.
Buffett emphasized that owning businesses will always be a priority over hoarding cash:
“Paper money can see its value evaporate if fiscal folly prevails.”
The company also made some notable investments in the last quarter, including:
Constellation Brands (Modelo maker)
Domino’s Pizza
️ Occidental Petroleum
Pool Corp.
2. Betting Big on Japan’s Business Giants
Buffett spotlighted Berkshire’s deepening ties with five major Japanese conglomerates:
• ITOCHU
• Marubeni
• Mitsubishi
• Mitsui
• Sumitomo
He praised their strategic leadership and fair compensation practices, confirming that Berkshire’s investments in these firms are for the long haul.
Since 2019, Berkshire’s initial $13.8 billion investment in these companies has grown to $23.5 billion—a significant gain that hints at even more future investments.
❌ 3. Mistakes Happen—But Big Wins Matter More
Buffett reflected on past errors, even admitting that acquiring Berkshire itself was originally a mistake, as it was a struggling textile company at the time.
But here’s the lesson he emphasized:
“Mistakes fade away; winners can forever blossom.”
Recent winner:
• GEICO was a standout in 2024, generating over $7.8 billion in underwriting earnings, up from $3.6 billion in 2023 and a $1.9 billion loss in 2022.
Buffett also reaffirmed his faith in Greg Abel, his successor, trusting him to continue Berkshire’s tradition of transparency and integrity with investors.
Final Thoughts
Buffett’s letter was a masterclass in patience, strategy, and long-term thinking. Whether it’s holding onto equities during market highs, making bold international moves, or learning from past mistakes, Berkshire Hathaway continues to lead by example in the world of investing.
Would you have made similar moves if you were in Buffett’s shoes?
Warren Buffett’s much-anticipated annual letter to Berkshire Hathaway shareholders has just dropped—and, as always, it’s packed with wisdom, market insights, and future strategies. Here’s a breakdown of the major highlights:
1. Cash Pile Grows, But Equities Remain King
Despite Berkshire’s record-breaking $334.2 billion in cash and equivalents (more than double the $163.3 billion from 2023), Buffett reassured investors that “the great majority” of their money remains invested in equities.
Key moves from last year:
• Bought $9.2 billion worth of stocks.
• Sold off over $143 billion in equities.
Buffett emphasized that owning businesses will always be a priority over hoarding cash:
“Paper money can see its value evaporate if fiscal folly prevails.”
The company also made some notable investments in the last quarter, including:
Constellation Brands (Modelo maker)
Domino’s Pizza
️ Occidental Petroleum
Pool Corp.
2. Betting Big on Japan’s Business Giants
Buffett spotlighted Berkshire’s deepening ties with five major Japanese conglomerates:
• ITOCHU
• Marubeni
• Mitsubishi
• Mitsui
• Sumitomo
He praised their strategic leadership and fair compensation practices, confirming that Berkshire’s investments in these firms are for the long haul.
Since 2019, Berkshire’s initial $13.8 billion investment in these companies has grown to $23.5 billion—a significant gain that hints at even more future investments.
❌ 3. Mistakes Happen—But Big Wins Matter More
Buffett reflected on past errors, even admitting that acquiring Berkshire itself was originally a mistake, as it was a struggling textile company at the time.
But here’s the lesson he emphasized:
“Mistakes fade away; winners can forever blossom.”
Recent winner:
• GEICO was a standout in 2024, generating over $7.8 billion in underwriting earnings, up from $3.6 billion in 2023 and a $1.9 billion loss in 2022.
Buffett also reaffirmed his faith in Greg Abel, his successor, trusting him to continue Berkshire’s tradition of transparency and integrity with investors.
Final Thoughts
Buffett’s letter was a masterclass in patience, strategy, and long-term thinking. Whether it’s holding onto equities during market highs, making bold international moves, or learning from past mistakes, Berkshire Hathaway continues to lead by example in the world of investing.
Would you have made similar moves if you were in Buffett’s shoes?