Warren Buffett’s 2024 was a year of decisive actions, monumental milestones, and poignant reflections that captivated the investment world.
The 94-year-old CEO of Berkshire Hathaway strengthened his cash reserves to over $300 billion, oversaw the company’s first-ever $1 trillion valuation, and made significant changes to Berkshire’s stock portfolio. Additionally, Buffett’s philanthropy and estate planning updates further demonstrated his thoughtful approach to legacy and leadership. Here’s a detailed look at six key highlights from Buffett’s 2024.
1. Honoring a Legendary Partner
In his annual letter released in February, Buffett paid a heartfelt tribute to his long-time business partner, Charlie Munger, who passed away in November 2023 at the age of 99. Munger, Berkshire’s vice chairman for over four decades, was instrumental in shaping the company’s strategy and success.
"Though I have long been in charge of the construction crew, Charlie should forever be credited as the architect," Buffett wrote, referring to himself as the "general contractor" who carried out Munger’s grand design.
Buffett also managed expectations around future acquisitions, reiterating the difficulty of finding large enough targets that could meaningfully impact Berkshire’s bottom line. "All in all, we have no possibility of eye-popping performance," he noted, reinforcing that Berkshire’s vast size limits transformative deal-making.
Buffett also criticized the rising trend of speculative investing in financial markets, taking aim at trading platforms like Robinhood that encourage frequent trading. "The casino now resides in many homes and daily tempts the occupants," he said, underscoring the risks of undisciplined speculation.
2. Annual Shareholder Meeting in Omaha
In May, tens of thousands of Berkshire shareholders gathered in Omaha for the much-anticipated annual meeting. Buffett held court for hours, addressing a wide range of topics, including Berkshire’s performance and his personal investment decisions.
Notably, Buffett revealed that he had sold a portion of Berkshire’s Apple stake in the first quarter of the year, a surprising move given his long-standing admiration for the tech giant. He also likened artificial intelligence to nuclear weapons, emphasizing the potential risks of unchecked technological advancement.
Buffett took responsibility for a misstep involving Paramount and admitted regret over missing out on a larger investment in Costco, a decision influenced by Munger’s earlier advice. He also raised concerns about the national debt and budget deficit but dismissed fears of foreign threats to the U.S. dollar, emphasizing America’s enduring economic resilience.
3. Strategic Stock Moves and Record Cash Reserves
Throughout 2024, Buffett and his team made significant adjustments to Berkshire’s portfolio, selling $133 billion worth of stocks while purchasing less than $6 billion. This represented a notable shift from 2023, when Berkshire had sold a net $24 billion, and 2022, when it purchased $34 billion in equities.
Berkshire also drastically reduced its buybacks, spending less than $3 billion on repurchases in the first nine months of 2024, compared to nearly $70 billion spent over the previous four years. The company refrained from any buybacks in the third quarter, reflecting Buffett’s reluctance to repurchase shares at elevated valuations.
These moves helped Berkshire’s cash pile soar from $168 billion at the start of the year to a record $325 billion by the end of September (or $310 billion net of pending Treasury bill purchases). The cash reserves, now comprising 27% of Berkshire’s $1.15 trillion in total assets, signal Buffett’s caution amid historically high market valuations and limited attractive investment opportunities.
4. Selling Core Holdings and Surprising Portfolio Shifts
One of the most surprising developments in 2024 was Buffett’s decision to pare down Berkshire’s largest holding—Apple. By year’s end, Berkshire had reduced its Apple stake by 67%, cutting its value from $174 billion to below $70 billion. This move stunned the investment community, given Buffett’s praise for Apple as "probably the best business I know in the world."
In addition to trimming its Apple position, Berkshire reduced its stake in Bank of America, its second-largest holding, by 26%. The sale generated over $10 billion in proceeds and reduced Berkshire’s ownership from over 13% to below 10%, allowing the company to avoid regulatory reporting requirements for future changes in its position.
Berkshire also revealed a $7 billion stake in insurance giant Chubb, cut holdings in Capital One, and acquired nearly 4% of Domino’s Pizza. These moves demonstrated Berkshire’s ongoing efforts to rebalance its portfolio and allocate capital selectively.
5. Generous Philanthropy
Buffett continued his tradition of significant charitable giving, donating Berkshire shares worth $5.3 billion to the Bill & Melinda Gates Foundation and four of his family’s foundations in June. This brought his total contributions to these organizations to $55 billion over the past 18 years.
In November, Buffett made an additional $1.2 billion donation, continuing a Thanksgiving tradition he began in 2022. His latest contributions reduced his personal holdings of Berkshire A shares to just over 206,000, meaning he has given away nearly 57% of his shares since pledging to donate 99% of his fortune to philanthropic causes in 2006.
For advisors guiding philanthropic clients, Buffett’s approach is a prime example of how structured giving can create a lasting impact while aligning with long-term financial goals.
6. Revised Estate Plan and Leadership Continuity
In a November shareholder letter, Buffett provided new details about his estate plan. He reiterated his commitment to passing on his immense wealth to "others who were given a very short straw at birth."
Earlier in the year, Buffett announced that most of his fortune would be placed in a trust, with his three children responsible for distributing it to charitable causes. However, recognizing that his children are in their late 60s and 70s, Buffett acknowledged the need for succession planning. He designated three potential successor trustees to be "on the waitlist" in case his children cannot fulfill their roles.
Buffett’s candid acknowledgment of mortality and succession planning reinforces the importance of thoughtful estate management. Wealth advisors can draw from Buffett’s example to help clients design flexible estate plans that account for contingencies and ensure that their legacies endure.
Takeaways for Wealth Advisors and RIAs
Buffett’s 2024 highlights several key lessons for financial professionals:
Patience and Discipline: By holding record cash reserves, Buffett demonstrated the value of waiting for favorable investment conditions rather than chasing returns. Strategic Portfolio Management: Trimming positions in even the most cherished holdings shows the importance of reassessing portfolios as market dynamics shift. Philanthropy and Legacy: Buffett’s structured and intentional approach to giving reinforces the need for thoughtful legacy planning that balances generosity with financial stewardship.
Succession Planning: Buffett’s proactive designation of successor trustees underscores the importance of preparing for leadership transitions to ensure continuity. As Berkshire Hathaway enters its next chapter, Buffett’s actions in 2024 serve as a blueprint for long-term value creation, risk management, and legacy building. Wealth advisors can leverage these insights to strengthen their own client strategies and foster enduring success.
