Buffett Cuts Bond Allocation as Berkshire Warns on Yields

Warren Buffett cut the allocation to bonds at Berkshire Hathaway Inc.’s insurance units to the lowest in more than a decade as the company warns that low yields will hurt results.

Fixed-income assets made up 14 percent of investments at the insurers as of Dec. 31, according to the company’s annual report. The year-end figure has typically been 20 percent to 25 percent since 2002, according to Berkshire documents. The $186.8 billion portfolio included $114.8 billion of stocks.