Berkshire Hathaway completely withdraws from ETFs

2/28/2025, 8:35 AM

Berkshire Hathaway sells all ETF holdings, increases cash reserves, and remains invested in stocks in the long term.

Eulerpool News Feb 28, 2025, 8:35 AM

Berkshire Hathaway has sold all its holdings in exchange-traded index funds (ETFs), including shares in the SPDR S&P 500 ETF Trust (SPY) and the Vanguard S&P 500 ETF (VOO), according to recent disclosures.

The shares, each worth around 22 million US dollars, were dissolved in the fourth quarter of 2024. This means that Warren Buffett's company is without ETF positions for the first time.

The sale follows a longer-term pattern at Berkshire Hathaway: For nine consecutive quarters, the conglomerate has been a net seller of securities. At the same time, the cash position has increased to a record level of $334.2 billion.

Despite the massive liquidity, Buffett resisted speculation in his recently released annual letter that he believes the stock market is overvalued. "Regardless of what some commentators view as an extraordinary cash position at Berkshire, the majority of your money remains invested in stocks," the 93-year-old wrote. "This preference will not change.

In the past, Buffett has praised index funds as an attractive investment opportunity. He particularly praised Vanguard and its founder Jack Bogle as "the one who has done the most for American investors." In his 2016 letter, he explicitly recommended low-cost index funds as an alternative to expensive actively managed funds.

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