🚨🚨 BREAKING NEWS: 🚨🚨
Warren Buffett Withdraws a Record Sum from the Stock Market...
Warren Buffett's investment firm, Berkshire Hathaway, has recently executed significant stock sales, notably reducing its holdings in Apple and Bank of America. In the third quarter of 2024, Berkshire sold 100 million Apple shares, decreasing its stake to 300 million shares, down from over 900 million at the end of 2023. Similarly, the company trimmed its Bank of America position by approximately 28% over the year.
These divestitures have contributed to Berkshire's cash reserves reaching a record $325.2 billion, primarily invested in short-term Treasury bills. This accumulation of cash suggests a cautious approach, possibly due to concerns over stock overvaluation and potential economic downturns.
Despite these sales, Apple remains Berkshire's largest equity holding, now accounting for less than 25% of its $300 billion equity portfolio. The strategic reduction in stock holdings aligns with anticipated increases in federal tax rates on gains.
Berkshire's operating profits declined by 6% in the third quarter, mainly due to insurance-related underwriting losses and hurricane impacts. However, some divisions, like Geico and BNSF railroad, showed profit improvements.
Analysts are focused on whether further significant acquisitions or investments are imminent, as valuation concerns and a cash-rich strategy persist.