The price of Bitcoin has plummeted in tandem with the recent poor performance of U.S. stocks, from touching 70K to 60K in a week. In the U.S. stock market, which is huge outside the crypto market, stock gods have already made a big exit and accumulated a lot of cash.
Record cash hoards and massive stock sell-off
Warren Buffett's legendary investment company, Berkshire Hathaway, accumulated a record $276.9 billion in cash reserves last quarter. There has been a massive stock sell-off recently, especially in shares of tech giant Apple.
Berkshire surpasses previous cash record, accelerating stock sell-off
Berkshire Hathaway's cash reserves increased significantly, climbing to new heights from a record $189 billion set in the first quarter of 2024. The main reason for the significant increase is that Buffett sold nearly half of his Apple shares in the second quarter.
Berkshire Hathaway has been selling off its stock consistently for the past seven quarters. However, the sell-off accelerated last quarter, with more than $75 billion in stocks sold in the second quarter alone. That brings total stock sales in the first half of 2024 to more than $90 billion. The selling trend continued into the third quarter, with Berkshire reducing its stake in Bank of America for 12 days in a row, recent filings show.
Auto insurance company Geico drives strong earnings
Despite the massive sell-off, Berkshire's operating earnings, including profits at its wholly-owned subsidiaries, rose. Strong performance from auto insurance company Geico helped Berkshire Hathaway's second-quarter operating income reach $11.6 billion, a 15% increase from $10 billion in the same period last year.
Buffett: We only spend money when the risk is small and the reward is high
Buffett, 94, still invests money cautiously. At Berkshire's annual shareholder meeting in May, he expressed a desire to invest but also stressed that finding attractive investment opportunities was not easy.
"We would love to spend the money, but we won't spend it unless we think (a business) has very little risk and can make a lot of money," Buffett explained. "It's not that I'm on a hunger strike, it's just that... the opportunities in the market are not attractive enough."
The speculation behind the stock god’s strategy
Buffett's strategy reflects his cautious approach to the current market. Buffett's decision to sell nearly half of Berkshire's Apple holdings was a major event in the investment world. While tax considerations and market conditions are legitimate reasons, the true motivations behind the sell-off are still subject to much speculation.
This article Bitcoin hangs 60K, cash is king! Buffett sells stocks, Berkshire Hathaway cash hits record $277 billion: No attractive investments appeared first on Chain News ABMedia.
