Warren Buffett’s Berkshire Hathaway has been taking a cautious approach, amassing a record cash pile and slashing its two biggest stock bets ahead of the US presidential election. The conglomerate’s third-quarter earnings show $325 billion in cash, up from less than $110 billion two years ago. This is Berkshire’s eighth straight quarter as a net seller, with $127 billion worth of stocks sold over the first nine months of 2024.
Buffett’s company has reduced its stakes in Apple and Bank of America, its two largest stock positions, by about 60% and 23%, respectively. The move suggests Buffett is wary of heady stock valuations and eager to take some chips off the table. He stopped buying shares of his own company last quarter, a sign that he no longer sees it as a bargain following its record-high gain this year.
The move has sparked concerns among investors, who are now wondering how to play the market ahead of Tuesday’s US presidential election. Buffett’s cautious stance implies a risk-off mentality and a willingness to wait for a better entry point. As one analyst noted, “When the world’s most famous living investor continues to sell down shares and sit on a considerable cash pile, it tells you something very important about the state of the market.”
Source: https://www.businessinsider.com/warren-buffett-berkshire-hathaway-cash-stocks-buybacks-trump-harris-election-2024-11