"Bear Market" Best Safe Haven? Berkshire Stock Price Hits All-Time High

Against the backdrop of a general decline in the U.S. stock market this year, Buffett's Berkshire Hathaway has significantly outperformed the market, becoming a safe haven for investors.

As of yesterday's market close, Berkshire Class A shares rose 1.8%, and Class B shares rose 1.6%, both reaching all-time highs. Since the beginning of the year, Berkshire Class A shares have accumulated a 15.3% increase, while the S&P 500 index has declined by 3.5%.

Cash is King Defense Strategy

Although there is no direct evidence that Buffett is bearish on the market, his cautious investment strategy is evident.

As of the fourth quarter, Berkshire holds a record cash position of $334.2 billion, with cash reserves increasing for the 10th consecutive quarter, accounting for 29% of total assets, reaching a multi-decade high.

However, despite maintaining a cautious overall stance, Buffett is still selectively making moves.

According to The Wall Street Journal, Berkshire recently announced that it has increased its stake in Japan's five major trading companies (Mitsubishi Corporation, Mitsui & Co., Itochu Corporation, Marubeni Corporation, and Sumitomo Corporation) to approximately 8.5%, and indicated that it may further increase its stake to a maximum of 9.9% in the future.

At the same time, Berkshire has also decided to sell its controlling stake in its real estate subsidiary HomeServices of America, with the transaction expected to be completed in the first quarter of 2025.

Analysts believe that Berkshire holding such a large amount of cash suggests that Buffett may think the current market lacks sufficiently attractive large acquisition targets. However, this also provides Berkshire with ample firepower to seize opportunities when the market undergoes significant adjustments