Warren Buffett Just Sold $100 Billion Worth of Stock.

Warren Buffett has sold a staggering 97 billion dollars worth of stock through the first 6 months of 2024. You heard that right. As the US stock market has continued to climb to uncomfortably high levels, Buffett has been dumping shares to the tune of nearly 100 billion dollars. You need to be paying attention to this or else you could lose a lot of money. If you ask Warren Buffett, he will be quick to say that it is foolish to attempt to time the stock market. However, Buffett’s actions tell quite a different story. Take a look at this chart. The gray bars are Berkshire’s cash position at the end of each quarter. The orange line represents the value of the S&P 500, the most frequently used US stock market index. As we can see here, despite what he may say in public, Buffett has quite the track record of building large piles of cash ahead of a stock market crash. In the build up to the dot com crash of the early 2000s, Buffett grew Berkshire’s cash pile by a factor of 10. Buffett then took advantage of the bubble bursting and spent down his cash buying up stocks for cheap. There is also the Great Financial Crisis. You can see that as the stock market continued to climb so did Buffett’s cash pile. The stock market went on to decline by a staggering 50% from its peak. What did Buffett do? You guessed it. Buffett used the cash he was sitting on to make some of the biggest and most successful investments of his career.

The cash pile that Buffett has built now makes these prior examples look tiny by comparison. As the US stock market has soared, so has the amount of cash Buffett is holding. Raising alarm bells that Buffett thinks the US stock market is in a massive bubble. Buffett’s cash pile has now grown to a staggering 276 billion dollars. As you can see here, this cash pile has nearly tripled in just the past two years. Growing from 100 billion in the Summer of 2022, to nearly 300 billion dollars as of the making of this video. Buffett rapidly increasing his cash position has followers of Buffett very nervous. You see, in the past, when cash increased at Berkshire, it was slow and steady and over a period of many years. Berkshire Hathaway is a holding company that owns dozens and dozens of different businesses. These businesses generate cash in the form of profits from their operations. In the past, Buffett would slow down his pace of making investments and cash would naturally pile up.

But oh boy is this time different. I have studied Buffett’s entire career and I have not been able to find another time where Buffett sold such a large amount of stocks in such a small time frame. What is particularly jarring is the fact that Buffett is even selling stock in companies that he previously said he planned to hold forever. This includes Buffett selling a staggering roughly 90 billion dollars worth of Apple stock in the first 6 months of 2024 alone. It wasn’t too long ago when Buffett considered Apple to be one of the stocks he would likely never sell.

[SarahBrown-hn]

I just turned 51 and awfully late to investing with barely any portfolio except my 401k, I have a decent amount of cash saved up and with inflation currently soaring AGAIN, I’m getting worried about retirement, my intention is to retire at 65 at least, so how best do I maximize my savings of over $500k

[annaj.osorio]

Sounds like a positive outlook on things then. So do you think it's best for us who are not institutional investors to focus on index funds or individual stocks? I want to redistribute my 160k portfolio and I preferably want the asset class with the best ROI.

[BarbaraMercer-tu]

Additional earnings reports from major tech companies, driven by Nvidia, coupled with trader FOMO, could fuel a resurgence in market buying pressure. I'm considering investing over $300k, but I'm uncertain about risk mitigation strategies.

[savitaagarwal]

The fact that nobody talks about the book whispers of manifestation on borlest speaks volumes about how people are stuck in a trance

[NancyFranciss]

So, I’ve finally reached the 'I have $75k sitting in my emergency fund' milestone... and I’m still binge-watching videos on whether FIRE is even possible. I mean, I could just throw it into some index funds and hope for the best, right? Or do I need a crystal ball for this early retirement magic? Just trying to figure out if my Netflix subscription will be my only retirement plan."

[DavidFlickering]

Hallelujah The daily jesus devotional has been a huge part of my transformation, God is good 🙌🏻🙌🏻. I was owing a loan of $49, 000 to the bank for my son's brain surgery, Now I'm no longer in debt after I invested $11, 000 and got my payout of $290, 500 every month…God bless Mrs Susan Jane Christy ❤️

[JamesLoper-hf]

I remember when I just got into crypto back in 2019 but later in 2020 I ended up selling it because I was dumb and I didn't understand it. Having a mentor to guide me now I know how it works. Got back into crypto early in 2024 with 10k and I’m up with 128k in a short period of time .This comment serves as motivation for all those who have invested and continue to invest in cryptocurrencies with so many losses, do not give up, cryptocurrencies can change your life. Do your best to connect with the right people and you will surely see changes...

[HaleyStevenson-dbje]

Larry Burkett's book on "Giving and Tithing" drew me closer to God and helped my spirituality. 2021 was a year I literally lived it. I cashed in my life savings and gave it all away. My total giving amounted to 30, 000 dollars. Everyone thought I was delusional. Today, 1 receive 75, 000 dollars every two months. I have a property in Calabasas, CA, and travel a lot. God has promoted me more than once and opened doors for me to live beyond my dreams.
God kept to his promises to and for me

[bennettross]

I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Brooke Miller for helping me achieve this

[PaytonBilliAndria]

I feel investors should focus on under-the-radar stocks, considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered. I don't know where to go here out of devastation.

[Cynthia-mmcv]

Do you think it's a good time to consider selling some stocks, or is it better to hold onto them for the long term? I’m considering rebalancing my $2M portfolios, So I'm curious about the best strategies to invest this year.

[yvonnebehrens]

Warren Buffett did not say that he was selling the stocks because of taxes but rather that his investors would not complain that he chose this time to sell since the taxes on capital gains was as low as it was every going to get. This could be interpreted by some that he was selling because the taxes were low, but he never said that. He just said that his investors would not complain because of when he chose to sell.
This, of course, does not negate your assessment that he may be selling because we are in a huge bubble that is ready to pop. And that may very well be the reason he is selling. but he did side step the question. And as you have poited out, because he probably does not want to have a panicked selling out. He DOES believe in the stock market and he knows how to maneuver within it brilliantly. So thank you for the warning

[MariaGomez-epiz]

Hit 200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started with 14k in last month 2024

[JonathanEasley-qm]

Hit 110k last week, lost over 14k today

[JanAlston-kdyl]

I've always been fascinated by how top investors achieve millionaire status through their investments. Currently, I'm sitting on $345K from a home sale and I'm torn between investing in stocks or holding out for a better opportunity.

[BarbaraMercer-tu]

The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400, 000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated.

[HarryArnold-tqsx]

Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid economy crisis, and even pull it off easily in favorable conditions. Unequivocally, the collapse is getting somebody somewhere rich.

[letsgobrandon]

I hit $358 today. Not much but it’s a start. I’m 65 years old and I thought it was better late than never.

[RichardSerra-pg]

I remember when I just got into crypto back in 2019 but later in 2020 I ended up selling it because I was dumb and I didn't understand it. Having a mentor to guide me now I know how it works. Got back into crypto early in 2024 with 10k and I’m up with 128k in a short period of time .This comment serves as motivation for all those who have invested and continue to invest in cryptocurrencies with so many losses, do not give up, cryptocurrencies can change your life. Do your best to connect with the right people and you will surely see changes..

[ReiniMailer]

Nothing is older than yesterday's newspaper. In this case weeks/months