Warren Buffett’s Berkshire Hathaway has ceased its selling spree of Apple stocks after reducing its stake for a year, leaving it with 300 million shares. Additionally, Berkshire Hathaway has initiated a $1.2 billion investment in Constellation Brands, accentuating their belief in the alcohol sector’s ability to maintain high prices and stable demand.
Buffett’s cash reserves have increased to almost $325 billion, benefiting from high interest rates while he patiently waits for attractive investment opportunities.
Significant cuts were made in Citigroup (-73%) and Bank of America (-14.7%), reflecting Buffett’s diminished enthusiasm for large banks. Additionally, withdrawing completely from S&P 500 ETFs suggests caution towards market-wide valuations.
Berkshire Hathaway has published its Q4 2024 13F report, showing Buffett’s halt on selling Apple stocks, increased investment into Constellation Brands, and continued decrease in the financial sector’s shares. Meanwhile, Berkshire’s infamous cash pile is nearing a whopping $325 billion.
New investments include $1.2 billion in Constellation Brands, an alcohol brand respected for its strong pricing position and stable 1.5% dividend. Also, exposure to the energy sector has risen with added shares in Occidental Petroleum, indicating a long-term optimistic outlook for the oil and gas sector.
Worth noting is the significant reduction in Citigroup by 73% indicating a clear retreat from large banks. Further selling of Bank of America by 14.7% continues the trend from the third quarter, totaling a 23.7% reduction in the last two quarters.
Buffett has also fully exited a short-term investment in Ultra Beauty and both SPY (S&P 500 ETF) and VOO (Vanguard S&P 500 ETF), likely signaling concerns over high market valuations.
Buffett’s cash reserves have jumped impressively to almost $325 billion, compared to $150 billion just 18 months prior, generating significant income thanks to high interest rates.
After a year of selling, Buffett has held on to 300 million Apple shares valued at $75.1 billion. Previously indicating that the sales were due to “tax purposes”, it shows no loss of faith in Apple’s long-term prospects.
Significant reduction in Citigroup shares (-73%) and further decreased position in Bank of America (-14.7%) highlight Buffett’s waning enthusiasm for large banks. Despite this, finance and technology still make up 65.68% of Berkshire’s portfolio. However, exposure is being narrowed as weaker players are eliminated.
Buffett’s complete withdrawal from S&P 500 ETFs could potentially indicate his view of overvalued market prices, making carefully selected individual stocks more appealing.
Nine out of ten of Buffett’s largest companies offer dividends, further emphasizing his investment strategy.
In conclusion, Buffett appears to be patient for bigger and more significant investment opportunities with nearly $325 billion in cash reserves. His selective investment strategy shows faith in solid consumer products with strong pricing power. Furthermore, his retreat from S&P 500 ETFs exhibits caution towards market-wide valuations while he maintains loyalty to quality.
Source: https://ceo.com.pl/buffett-zwieksza-rezerwy-gotowkowe-do-325-mld-usd-i-czeka-na-okazje-inwestycyjne-11315
