Warren Buffett, 95, is not planning to retire anytime soon, but he’s making moves to rebalance Berkshire Hathaway’s massive stock portfolio. The billionaire investor has been selling off some of his major holdings, including a significant stake in Apple, to raise cash and invest in short-term Treasury bonds.
Buffett’s Apple stake has lost about $18 billion since the end of 2023, as he sells pieces of his position due to rising valuations. The stock’s price-to-earnings ratio is now above Buffett’s typical range, making it less attractive to him. Meanwhile, Bank of America’s valuation is also elevated, prompting Buffett to trim his stake in the bank.
So, what should investors do? Buffett is betting on cash and equivalents that yield about 4% interest from short-term U.S. Treasuries. This move may be a warning sign for individual investors to diversify their portfolios by adding some Treasury bonds through low-cost exchange-traded funds (ETFs). While it’s essential to consider your financial situation before making any investment decisions, following Buffett into Treasuries could be a smart strategy, especially if you hold growth or AI stocks in your portfolio.
Source: https://www.fool.com/investing/2025/10/15/billionaire-warren-buffett-just-sold-more-than-463