In February 2025, Berkshire Hathaway published its Form 13F Hold Positions report and Buffett's shareholder letter, serving as a core window into global investment trends. What insights does the stock god's "shopping cart" hold this time?

According to public information, Berkshire's cash reserves have surged to $334.2 billion, accounting for 18% of total assets, fully validating Buffett's investment strategy of "cash is king + waiting for high certainty opportunities." For us, paying attention to Buffett's Hold Positions changes and strategic logic is essentially learning how to adhere to core principles amidst volatility: to Hold quality companies at reasonable prices, rather than chasing short-term bubbles.

Latest changes in the stock god's Hold Positions.

As of December 31, 2024, Berkshire's US stocks Market Cap was $267 billion, with one new stock added in Q4, increasing 5 stocks, clearing 3 stocks, and reducing 8 stocks. What specific adjustments were made? We can pay attention to that.

1. Heavy holdings

The top five holdings basically remain unchanged, which are $Apple(AAPL.US)$ ， $American Express(AXP.US)$ ， $Bank of America(BAC.US)$ ， $Coca-Cola(KO.US)$ ， $Chevron(CVX.US)$ . Among them, $Apple(AAPL.US)$ still the largest heavy stock, with a shareholding market cap of 75.1 billion USD, accounting for 28.12% of the portfolio.

2. Increase in shareholding stocks

Increase in shareholding $Occidental Petroleum(OXY.US)$ 、 $Domino's Pizza(DPZ.US)$ 和 $Pool Corp(POOL.US)$ Companies such as Occidental Petroleum, which account for 4.63%, 0.37%, and 0.08% of the portfolio respectively. Among them, Occidental Petroleum has continuously increased its holdings, with shares reaching 0.265 billion, accounting for 28.24% of the issued shares, with a holding market cap of 12.398 billion USD.

3. Stocks for building positions

The only stock purchased is a high-end Beer, wine, and Spirit supplier. $Constellation Brands(STZ.US)$ A total of 5.62 million shares were bought, accounting for 0.46% of the portfolio. Driven by the news of Buffett's building positions, Constellation Brands' stock price has seen a continuous rebound since February 14.

4. Stocks for reducing positions

Berkshire Hathaway Inc. has been aggressively reducing its holdings in Banks, including the third largest position. $Bank of America(BAC.US)$ 和 $Citigroup(C.US)$ In addition, there was also a Shareholding reduction in Financial Services companies. $Capital One Financial(COF.US)$ The third largest Telecommunications Operator in the USA. $T-Mobile US(TMUS.US)$ Cable Television and Broadband Providers. $Charter Communications(CHTR.US)$ As well as. $Louisiana-Pacific(LPX.US)$ ， $Liberty Formula One-C(FWONK.US)$ ， $Nu Holdings(NU.US)$ And other companies.

5. Liquidating Stocks

Liquidating the largest beauty product retailer in the USA $Ulta Beauty(ULTA.US)$ , along with two ETFs tracking the S&P 500— $SPDR S&P 500 ETF(SPY.US)$ 和 $Vanguard S&P 500 ETF(VOO.US)$ 。

In summary, Buffett's portfolio adjustments exhibit three main characteristics. First, there is a dual increase in Energy and Consumer sectors, including Occidental Petroleum, Domino's Pizza, and Constellation Brands. Second, there is a systematic reduction in Financial stocks, including Bank of America, Citigroup, Nu, and Capital One Financial. Additionally, some small holdings have been offloaded. Of course, the core performance is the increase in cash reserves, marking the ninth consecutive quarter that Buffett has net sold Stocks to convert into cash, which indirectly suggests that the investment guru may be quietly saving up bullets to tackle extreme market volatility or to capture future undervaluation opportunities.

2025 Shareholder Letter Insights

This year, Buffett still insists on releasing the shareholder letter, marking the 60th year of his leadership at Berkshire Hathaway Inc. In the letter, he detailed last year's profit situation and future plans, promising that most funds will still be invested in stocks. As for what to invest in? When to invest? Patience is needed.

1. Adhere to a long-term perspective.

Reiterate the principle of 'always investing the majority of funds in Stocks', emphasizing the innovative capabilities of the USA economy and the legal environment that support long-term growth. From 1965 to 2024, Berkshire Hathaway's per-share Market Cap compound annual growth rate reached 19.9%, far exceeding the S&P 500 Index's 10.4%.

2. Insist on cash being king and risk management.

Cash reserves hit a record high, used for waiting for high certainty opportunities. Emphasize avoiding 'permanent capital loss', with 53% of profits declining in 2024 from holdings still achieving profit growth through government Bonds and Insurance businesses.

3. International layout.

Investment in Japan's five major trading companies increased to $23.5 billion, with a cost of only $13.8 billion, diversifying geopolitical risk.

The operational logic under the USA economic environment.

Buffett's strategy is always rooted in a profound understanding of macroeconomics, making it worth consideration and following trends for investors.

1. Interest Rate Cycle and Capital Allocation

The Fed's interest rate hikes have put pressure on bank stock profits, leading Buffett to decisively reduce his holdings in high-leverage financial sectors and instead increase his holdings in cash flow-stable Energy and Consumer stocks. His Insurance business (such as GEICO) achieved profit growth of 302% by optimizing underwriting processes, highlighting the advantage of low-cost funds.

2. Inflation and Consumer Resilience

Increasing positions in consumer stocks like Domino's Pizza reflects a prediction regarding the "wage-inflation spiral." Buffett believes that brand loyalty and pricing power can partially offset cost pressures, while cash reserves (334.2 billion USD) provide a buffer against potential consumer contractions.

3. Long-termism and Error Correction Mechanism

Despite 53% of the profits of holding companies declining, Berkshire maintains growth momentum through continuous reinvestment (such as increasing utilities to a 100% stake) and divesting inefficient assets. Buffett admits that "errors are inevitable," but emphasizes that "timely correction of errors" is more important than perfect decision-making.

How should investors reference this?

1. Adhere to value investing.

Moat Priority: Choose quality companies with ROE > 20% and gross margin > 40% (like Apple and Coca-Cola), focusing on their business models rather than short-term profit fluctuations.

Margin of Safety Thinking: Avoid chasing high prices during market enthusiasm, refer to Berkshire's cautious attitude towards Technology stocks (like NVIDIA), and wait for reasonable valuations to enter.

2. Insights on Risk Management

Balancing Diversification and Concentration: Berkshire's top ten Hold Positions account for nearly 90%, but ordinary investors should allocate 50% to stable Assets (Bonds/Cash), 30% to growth stocks, and 20% to overseas Assets to diversify risks.

Cash is King: Retain 3-6 months of emergency funds to avoid forced liquidation due to short-term fluctuations.

3. Extension of Globalization Layout

Investment by Japan's five major trading companies shows that Buffett is allocating global resources through a 'currency-neutral' strategy (yen debt hedging), and ordinary investors can focus on undervalued blue-chip companies overseas (like European utilities).

Finding Certainty in Uncertainty

Warren Buffett's legendary wealth growth of over 0.055 million times in 60 years fundamentally embodies the principle of 'good companies + good prices + long-term Hold' as the practice of compounding.

For ordinary investors, rather than chasing short-term trends, it is better to learn his 'business owner mindset': assess whether a company has the ability to continuously generate free cash flow, rather than getting lost in Candlestick fluctuations. As he mentioned in his letter: 'If you were to fully acquire this company, would you be willing to operate it?'.

In 2025, a year marking the tail end of interest rate hikes by the Federal Reserve and ongoing geopolitical conflicts, this type of wisdom that transcends cycles may be more valuable than any short-term forecast.

PS: Click on the Futubull app market > US Stocks > Institutional Tracking to understand the institutional holding status and stay updated with the latest investment trends.

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