Warren Buffett's Berkshire Hathaway has reached a new all-time high, thriving amid the volatile stock market. The Class A shares surged 10.3% in February and another 2.5% in March.
Berkshire's Record Performance Amid Market Volatility
In February, Berkshire Hathaway Class A shares soared by 10.3%, marking its best month since March 2022, and an additional 2.5% in March, amid market tumult. This is the firm's strongest two-month performance against the S&P 500 since 2010. While investors worry about recession and inflation, the company has accumulated cash reserves of $334 billion by the end of the reporting period.
Betting on Japanese Firms
Berkshire Hathaway increased its stakes in five major Japanese trading companies: Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo. Warren Buffett highlighted these firms' strong balance sheets and capital strategies: 'Greg has met many times with them, and I regularly follow their progress,' Warren wrote. These investments are considered long-term, but the company does not plan to increase its ownership beyond 10%.
Market Trends and Fed Response
As U.S. stock futures decline, many investors focus on the Federal Reserve's actions. Recently, S&P 500, Nasdaq, and Dow Jones show negative trends. The Fed announced two upcoming interest rate cuts but also noted higher-than-expected inflation and slower growth. This creates uncertainty affecting decisions on spending and hiring.
Berkshire Hathaway continues to show resilience amid market instability, displaying strategies of cash accumulation and investment in sustainable businesses. Warren Buffett focuses on long-term prospects, avoiding risk and market panic.
