The Oracle of Omaha has been socking hundreds of millions of dollars away in an investment that currently yields almost 4%.Warren Buffett will retire as CEO of Berkshire Hathaway (BRK.A 0.50%) (BRK.B 0.39%) at the end of 2025 and leave Greg Abel in charge. The $1 trillion conglomerate constructed by Buffett over the last 60 years operates a diverse array of wholly owned subsidiaries, and also owns a stock portfolio worth about $314 billion as of this writing.But just because Buffett's tenure as the head of ...

Tether has revealed that its profit for the first three quarters of 2025 has passed the $10 billion mark. That number puts it ahead of some of the world’s biggest banks when looking at the same stretch of time. Treasury Bills Are Doing the Heavy Lifting The massive revenue comes mainly from the $135 billion in U.S. Treasury bills that Tether holds in its reserves. These reserves back every USDT token in circulation, and when interest rates on Treasuries climb, so does Tether’s profit. The company benefi ...

wsmahar / E+ via Getty Images As Warren Buffett prepares to hand over leadership of Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B) to Greg Abel by year's end, his strategy remains focused on resilience amid market uncertainty. Even in his final months at the helm, Buffett has continued trimming major stakes in Apple (NASDAQ:AAPL) and Bank of America (NYSE:BAC), reducing exposure to high-valuation sectors. At the same time, he has made modest additions to positions in companies like Nucor (NYSE:NUE) and Unit ...

Core Insights - Warren Buffett's investment strategy focuses on determining whether a business is undervalued compared to its market price rather than trying to time the market or predict short-term stock movements [2][5] - Berkshire Hathaway has achieved a compound annual growth rate of approximately 20% since 1965, significantly outperforming the S&P 500's 10.4% during the same period [3][4] Investment Strategy - Buffett's approach of buying fundamentally undervalued stocks has proven successful, but he has recently identified that many equities in Berkshire's portfolio may be overvalued [5] - Berkshire Hathaway has been a net seller of stocks for 10 consecutive quarters, selling $174 billion more than it purchased during this period [5] Portfolio Adjustments - Significant reductions in holdings include a 67% cut in Apple and a 39% reduction in Bank of America [6][12] - Apple remains the largest holding in Berkshire's portfolio, accounting for nearly 22% of its value, but its high forward P/E ratio of 29 has led Buffett to refrain from adding to this position [11][10] Cash Management - Berkshire Hathaway has accumulated substantial cash from stock sales, with $314.1 billion in U.S. Treasury bills yielding an average of 4.3%, expected to generate $13.5 billion in interest in 2025 [15][16] - Despite the significant income from Treasury bills, Buffett prefers to invest in equities rather than bonds, emphasizing a long-term commitment to equity investments [17] Market Valuation Challenges - The current market presents challenges for Buffett, as many large-cap stocks are trading at high valuations, limiting the universe of investable stocks for Berkshire [18] - Smaller and mid-cap stocks are trading at more attractive valuations, suggesting potential opportunities outside of the largest companies [19][20]