Buffett’s Bold Moves: Selling Apple, Stockpiling Cash, and Strategic Buys

Warren Buffett: “Be fearful when others are greedy and greedy when others are fearful.”

• “Price is what you pay. Value is what you get.”

Warren Buffett, the legendary investor, pulled back the curtain on Wednesday, shedding light on a series of bold moves in the stock market. Among the revelations, Buffett confirmed that he had offloaded a staggering 389 million Apple (AAPL) shares during the tumultuous second quarter—a revelation that sent ripples through the financial world.

Yet, even after this colossal sell-off, Berkshire Hathaway (BRK-B) remains deeply entwined with Apple, clinging to 400 million shares of the tech giant. This keeps Apple as the crown jewel in Berkshire’s stock portfolio, according to the latest Securities and Exchange Commission filings. While whispers of this massive sale surfaced earlier in Berkshire’s earnings report, the full extent of Buffett’s maneuver was only unmasked midweek, leaving analysts and investors to ponder the strategy behind it.

Warren Buffett on why Berkshire invested in railroads pic.twitter.com/CxrmGS7aJ6

— Finding Compounders (@F_Compounders) August 14, 2024

But Apple wasn’t the only stock feeling the squeeze. Berkshire has been systematically trimming its positions across a spectrum of major players—Bank of America, Chevron, Capital One, Floor & Decor Holdings, T-Mobile, and Louisiana Pacific all faced the blade. Not stopping there, Berkshire also made a clean break from its nearly $1 billion stake in Snowflake, adding another layer to its enigmatic strategy.

The impact of these moves is staggering, inflating Berkshire’s cash reserves to an eye-popping $277 billion—a record sum that has left market watchers both awed and perplexed.

However, it’s not all about shedding weight. Berkshire channeled fresh capital into Chubb, a powerhouse in the insurance sector, and Occidental Petroleum, an oil titan. On the sidelines, new stakes appeared in lesser-known but intriguing names like Heico Corp., an aerospace parts maker, and Ulta Beauty, a force in the cosmetics world.

BREAKING: Warren Buffett just updated his investment portfolio.

He has $280 Billion invested in these 41 stocks: pic.twitter.com/SCUirNG3Gj

— Andrew Lokenauth | TheFinanceNewsletter.com (@FluentInFinance) August 14, 2024

The quarterly filings, though detailed, keep a shroud over who precisely executed these trades. Was it Buffett himself, or one of his trusted investment lieutenants? It’s a mystery. But given Buffett’s penchant for managing billion-dollar bets personally, the fingerprints of the Oracle of Omaha are likely all over the biggest moves.

Buffett’s every step in the market is a beacon for investors, a signal flare in the often murky waters of finance. With a track record that spans decades and success that’s almost mythic, his decisions are scrutinized, dissected, and often emulated.

JUST IN: 🇺🇸 Warren Buffett just updated his portfolio.

‼️Buffett now holds $277 Billion in CASH and selling stocks like never before, including Apple.

He’s getting ready for a crash… pic.twitter.com/fCzMopzPpr

— Radar🚨 (@RadarHits) August 15, 2024

Beyond the stock market, Berkshire Hathaway’s empire is vast and varied. The conglomerate’s holdings extend far beyond its near-$300 billion stock portfolio. It owns giants like Geico in insurance, BNSF in railroads, and an array of utilities, manufacturing, and retail businesses. Household names like Dairy Queen, Helzberg Diamonds, and NetJets are part of this sprawling empire—a testament to the vastness and diversity of Berkshire’s reach.

Quotes

• Warren Buffett: “The stock market is designed to transfer money from the Active to the Patient.”
• “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Major points

• Buffett sold 389 million Apple shares but still holds 400 million.
• Berkshire trimmed stakes in Bank of America, Chevron, and others.
• Exited nearly $1 billion investment in Snowflake.
• Cash reserves surged to a record $277 billion.
• Increased investments in Chubb, Occidental Petroleum, and made new bets on Heico Corp. and Ulta Beauty.

Kirk Volo – Reprinted with permission of Whatfinger News