First time since 1942 Warren Buffett has not had a majority of his net worth in equities

[GON]

Earlier this morning I read an article the Berkshire continues to sell equities and "hoard" cash.

The article stated for this first time in this century that Berkshire has more cash and treasuries on hand- than Berkshire has in equities. Not sure Berkshire is earning much more than a five percent return on treasuries- yet that is where Berkshire is investing, rather than in equities. Berkshire continues to liquidate its Apple holdings.

One theory of Berkshire selling equities is a proposed hike in capital gain taxes (to counter growing debt/deficits of the U.S. Gov). Selling now and paying taxes on the gains before the capital gain tax rises.

https://finance.yahoo.com/news/berkshire-hathaway-dumping-apple-stock-190102086.html

 

[Dave Hess]

What does he know about the economy and problems in the near future ?

 

[ArrestMeRedZ]

...One theory of Berkshire selling equities is a proposed hike in capital gain taxes (to counter growing debt/deficits of the U.S. Gov). Selling now and paying taxes on the gains before the capital gain tax rises.

Not just a theory, Buffet has stated that is the reason he is selling. Which is why I don't believe it. He is not above stretching the truth if it results in a financial benefit. Like SC Maintenance said above (paraphrased) pay attention to what he does, not what he says.

 

[daves87rs]

What does he know about the economy and problems in the near future ?

More than for us for sure, I’m willing to bet.

Get the feeling the 401k is about to take a hit…..

 

[dubber09]

Buffett is a smart guy for sure, worth listening to. Plus he's a member of that elite cabal of economists and financial gurus that correctly predicted all ten of the last two recessions.

He could be one of those who crafted them.

 

[Vil_Riker]

Earlier this morning I read an article the Berkshire continues to sell equities and "hoard" cash.

The article stated for this first time in this century that Berkshire has more cash and treasuries on hand- than Berkshire has in equities. Not sure Berkshire is earning much more than a five percent return on treasuries- yet that is where Berkshire is investing, rather than in equities. Berkshire continues to liquidate its Apple holdings.

One theory of Berkshire selling equities is a proposed hike in capital gain taxes (to counter growing debt/deficits of the U.S. Gov). Selling now and paying taxes on the gains before the capital gain tax rises.

https://finance.yahoo.com/news/berkshire-hathaway-dumping-apple-stock-190102086.html

With the yield curve uninverted as of September, there is a high likelihood of a recession starting in April/May period next year. The market will be opportune for those with cash if that happens.

 

[alarmguy]

The this newsletter from the Op back from 2023 Warren Buffett missed a major upside move in the market
Warren Buffett in the past has made some major mistakes which he admitted

But the bottom line is I like his mythology on how he built as wealth
That is real value in stocks, not wild speculation, like some of the stocks mentioned in this forum, Like in the electric vehicle sphere as an example

Here is an example of what I’m talking about from a 2020 Warren Buffett interview on Tesla which they still have not invested in because of his mythology

https://finance.yahoo.com/news/heres-warren-buffett-thinks-tesla-195520766.html

Buffett is a long-term investor in China based BYD, Again value
https://www.investors.com/news/warren-buffett-fsd-elon-musk-buy-tesla-stock/

 

[SC Maintenance]

Berkshire is simply following their own rules. Its not like you or I and we can liquidate our entire portfolio in a minute. Berkshire owns huge percentages of some of these companies - so getting out on a high isn't particularly easy for them, they could easily crash the stock.

There selling some of their largest holdings. They still own a lot though. Bank of America is sitting on a ton of underwater treasuries. There not going bust, but it will be hard for them to make money if rates stay high.

They have said Apple is a great company but their valued for perfection. Its possible they keep going up but doesn't fit their value model at current valuations.

There selling some others, not sure which. Valuations are high. Even if the market keeps going up they will find other things to buy.

 

[Brons2]

I am personally more interested in Warren Buffet's diet and exercise regimen as opposed to what he's investing in. I mean the guy is old as dirt and twice as dusty and still seems 100% with it despite being close to 100 years old.