Article goes on to say….
In retrospect, it’s easy to see why Buffett was selling even as the market was making new highs. While some money managers have criticized him for being too conservative in his allocations in recent years, there were plenty of signs in the fourth quarter that market choppiness could be ahead. President Donald Trump made no secret of his plans to use tariffs liberally in his second term. While many market observers were quick to claim he didn’t mean what he said, it turns out…he did.
A real investor looks at six months in the future.
A person that just looks at today is just a gambler....................
I told my financial advisor to keep a portion of my retirement in cash last year for the same reason. I found out one of his people moved it into stocks in early December. As soon as I saw it I read him the riot act and told him to put it back into cash. Lost a few points, but I didn’t care as I knew the market was way overheated.
I’ll wait for another 4-5% drop from the high (currently around 7) before I call him to start moving it back in.
“Late last year, the Berkshire Hathaway CEO was busy selling stocks when the S&P 500 logged more than 50 record closes, leading many market observers to scratch their heads”
Buy low, sell high.
In late January I moved 4/5 of my 401k out of stocks....just seemed that the market had come so far, very quickly, and there were a lot of storm clouds showing up. My broker manages another fund, never made a peep about any moves...it’s a smaller account but they just never seem to want you to do anything but be in stock, even if they balance it in different markets/industries.
The stock market crashed in 2008-09 and the National Debt was about $9 Trillion at that time.
Since then the National Debt has risen to $36 Trillion.
The stock market for the past 17 years has been propped up by our government printing of $27 Trillion in funny money.
Since Trump promises a’common sense’ government it is logical to conclude the government is going to learn how to live within its means.
I believe he also has been selling some of his Apple holdings according to previous articles.
There was an article about a week ago that stated they were investing in a few Japanese companies. Not sure what specific Japanese companies.
The main reason when asked WHY Berkshire Hathaway has not been making purchases is that they did not see anything of value. Meaning they think that the stock market is overpriced and due for a correction. I happen to agree with BH view in general. Although, I did recently buy NVIDA and Pallentir based on their recent pullbacks.
However, I have been 95% TBills since last July making between 4.3-5.3%. Which is a lot better than losing 20% of my stock value. The majority of these TBills are now in revolving 4 week auctions.
I still own two losers at this point. They are both almost 5 year old bad buys. One is the Matthews China fund. The other is a Solar ETF. Both are 33-55% of the price I paid for them. The China fund is up about 40% from its low last year.
It wasn’t too hard to see that bank of America might drop significantly if they get investigated for bias agaisnt conservatives. Maybe he sold because he Predicts the Trump admin might investigate them?
YTD the F500 is -1.6%, not their cherry picked -5.9%.
Article is biased.
He’s always buying and selling. It gives bloggers plenty of material for whatever they want to say.
In December he reduced banks and bough buying consumer and cyclicals
https://www.dataroma.com/m/holdings.php?m=BRK
Mostly he was selling Apple.