No New Positions Added as Cautious Approach Prevails in First Quarter 2025
Berkshire Hathaway, the investment powerhouse led by Warren Buffett, opted for a conservative stance during the first quarter of 2025, according to the latest 13F filing disclosed on Thursday. The conglomerate refrained from adding any new positions amid a turbulent market marked by tariff-related volatility that dragged the S&P 500 down nearly 5%. Buffett’s cautious strategy is consistent with his remarks at Berkshire’s annual shareholder meeting, where he emphasized patience in seeking value-driven deals.
Berkshire Hathaway’s total assets under management declined to $258 billion from $267 billion at the end of 2024, reflecting portfolio adjustments and market conditions. Concurrently, cash reserves rose to an impressive $350 billion, up from $334 billion at the close of last year, underscoring Buffett’s preference to maintain liquidity in uncertain times.
Highlights:
Berkshire Hathaway made no new portfolio additions in Q1 2025.
Assets under management decreased to $258 billion from $267 billion.
Cash holdings increased to $350 billion, reflecting a defensive posture.
Trimming Bank Stock Holdings Signals Shift in Sector Exposure
Berkshire Sells Over $3 Billion in Bank Shares, Exits Citigroup Position
During the quarter, Berkshire Hathaway significantly reduced its exposure to major US banks. The firm sold over $2 billion worth of Bank of America shares, marking its largest divestment for the period. It also trimmed its Capital One Financial stake by approximately 4%. Notably, Berkshire completely exited its position in Citigroup, selling around $1 billion in stock.
These moves indicate a strategic recalibration of Berkshire’s banking sector exposure amid uncertain macroeconomic factors and potential regulatory risks. Buffett’s decision to lighten up on banks may also reflect concerns over rising interest rates and their impact on bank profitability.
Highlights:
Sold over $2 billion of Bank of America shares.
Reduced Capital One stake by 4%.
Fully exited Citigroup, offloading $1 billion in stock.
Increased Stakes in Energy and Communication Sectors Highlight Portfolio Shift
Buffett Boosts Occidental Petroleum and Technology-Driven Companies
While Berkshire Hathaway curtailed its banking exposure, it expanded holdings in select energy and communication companies. The firm acquired more than 700,000 shares of Occidental Petroleum, increasing its stake to approximately $13 billion. This move signals confidence in the energy sector amid global supply dynamics and rising commodity prices.
Berkshire also bolstered its investment in technology and communications. It increased its holdings in VeriSign, an internet infrastructure provider, by 3% to $3.7 billion. Additionally, the broadcasting company Sirius XM Holdings saw a 35% jump in Berkshire’s stake, now valued at $2.7 billion.
Other companies added to the portfolio include Seagate Technology Holdings, Domino’s Pizza, and Constellation Brands, indicating a diversified approach towards consumer, tech, and energy sectors.
Highlights:
Acquired 700,000+ shares of Occidental Petroleum, raising value to $13 billion.
Increased VeriSign holdings by 3% to $3.7 billion.
Boosted Sirius XM Holdings stake by 35% to $2.7 billion.
Added positions in Seagate Technology, Domino’s Pizza, and Constellation Brands.
Buffett’s Investment Philosophy Reflects Caution and Value Focus in Volatile Market
Preference for Cash and Long-Term Opportunities Amid Uncertain Environment
Buffett’s reluctance to deploy cash aggressively this quarter aligns with his long-standing investment philosophy that prioritizes value and patience. At the recent shareholder meeting, he mentioned nearly finalizing a $10 billion deal before withdrawing, and reiterated willingness to invest up to $100 billion if the right opportunity at the right price emerges.
This strategy underscores a disciplined approach that avoids chasing short-term gains in favor of sustainable, long-term growth. Buffett’s move to hold record levels of cash also signals prudence, preserving flexibility to capitalize on future market dislocations or undervalued assets.
Highlights:
Buffett’s firm is open to large deals but only at attractive valuations.
Focus remains on long-term holdings and avoiding lowest-bidder pitfalls.
Cash reserves at historic highs to exploit future opportunities.
