Feb. 23, 2025 9:13 PM ETBerkshire Hathaway Inc. (BRK.B) Stock, BRK.A StockBRK.B, BRK.A1 CommentCavenagh Research9.26K Followers(11min)Berkshire Hathaway delivered a strong Q4 2024, with operating income surging 71% YoY, growing to $14.5 billion, driven by strong operating gains in the insurance business.Despite the solid macro backdrop, Buffett remained cautious on equities: For FY 2024, Warren Buffett's Berkshire Hathaway dumped $143.4 billion in stocks, while purchasing just $9.2 billion.With no Q4 buybacks and only $2.9 billion repurchased for the year, Buffett signaled that Berkshire's stock may be overvalued, a thesis that aligns with my calculations.As financial wisdom extracted from the investor letter, I liked how Buffett reinforced 3 key investing principles—admit mistakes quickly, prioritize leadership over credentials, and focus on a few big winners.RiverNorthPhotography/iStock Unreleased via Getty ImagesI downgraded NYSE:BRK.B stock to "Hold" in early 2024, arguing that despite Berkshire Hathaway's (NYSE:BRK.A) strong operating performance, Buffett’s capital allocation strategy has been too conservative for my liking, with Berkshire being a net seller of equities for multiple quarter, missingThis article was written byCavenagh Research9.26K FollowersExperience as an investment analyst for a major BB-Bank, as well as private equity consultant for MBB. Currently working towards the CFA charter, having completed I&II. Passion for risk-assets (Growth, Contrarian, Emerging Market) ex-colleague and close friend of Investor ExpressAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Not financial advice.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comment(1)Recommended For You