When Warren Buffett sold most of hisApple shares and hoarded cash, few knew what to make of it. Social media erupted. Memes flooded in. Some called it a stroke of genius, others questioned his timing. Then, the stock markct tumbled.
Buffett's Berkshire Hathaway nearly doubled its cash, Treasury bills, and liquid assets in 2024, reaching a record $334 billion. By the end of the year, it had sold a net $134 billion in stocks, barely spending $3 billion on buybacks. For perspective, in 2023, it sold just $24 billion and repurchased over $9 billion of its own shares.
"Despite what some commentators currently view as an extraordinary cash position at Berkshire, the great majority of your money remains in equities," Buffett reassured shareholders in his annual letter.
Why Buffett Ditched Apple and Bank of America Berkshire's Apple stake once stood at 906 million shares worth $174 billion-nearly half of its stock portfolio. By December, it had slashed the position by 67% to 300 million shares, worth $75 billion. It also cut its holdings in Bank of America by 34%, from $41 billion to just under $30 billion.
As of this week, Apple and Bank of America have dropped 15% and 20% from their November peaks. While Apple is still up 15% in 2024, meaning Buffett left some money on the table, Bank of America's price remains roughly where it was last June.
The Verdict: A Smart Bet or Market Misfire:-
Buffett's critics argue he moved too soon, leaving billions on the table. His supporters say he's playing the long game, waiting for better opportunities. Either way, he's sitting on a war chest that few can match. And if history is any guide, when the next golden opportunity arrives, he won't be reaching for a thimble-he'll be reaching for a bucket.
