Berkshire Hathaway has further increased its cash cushion in the fourth quarter of 2024, bringing the reserves of the investment company led by Warren Buffett to $334.2 billion – a new high. According to the annual report released on Saturday, the company sold $143 billion worth of stocks and invested only $9 billion in new stocks. Instead, Berkshire recently preferred short-term U.S. government bonds, which proved to be very lucrative due to the Federal Reserve's interest rate hikes. The insurance division recorded $11.6 billion in interest income in 2024, surpassing the dividend earnings of the Berkshire stock portfolio. Berkshire's operating profit increased by 27 percent to $47.4 billion, driven mainly by better figures in the insurance businesses. Despite the absence of major deals and the massive sale of stocks like Apple, Buffett assures in his letter to shareholders that the accumulation of cash does not mean a departure from the principle of holding "good companies" – and thus mainly U.S. values. However, he also warns of the potential devaluation of a currency when a nation acts fiscally irresponsibly. Caution is still advised in the context of rising interest rates and announced austerity measures, as well as potential trade policies from President Donald Trump. While Berkshire has net sold more stocks than it bought over the past nine quarters, its engagement with five Japanese trading houses (including Mitsubishi and Mitsui & Co) is expected to grow. According to Buffett, Berkshire could increase its holdings beyond the previous 10 percent threshold in the medium term. Berkshire had purchased the five companies in 2019 for $13.8 billion, whose value has now risen to $23.5 billion. According to Berkshire, no own stocks have been repurchased since May 2024, which indicates a fair or too high valuation of the shares in the management's view. Over the past five years, Class A shares have increased by 109 percent. "Often, nothing truly attractive emerges; only very rarely do we find ourselves in the midst of a wave full of opportunities," Buffett said.