Berkshire Hathaway of Warren Buffett sold shares and did not make deals, even when the markets collapsed after "Liberation Day"
Berkshire Hathaway's results in the second quarter showed that the conglomerate remained a net seller of stocks and continued to accumulate cash. This period includes the decline and rebound of the stock market after the implementation of aggressive tariffs by President Donald Trump on "Liberation Day" in April.
Did Buffett miss the rally?
What the second quarter showed for Berkshire
▪️Net sales continue for the 11th consecutive quarter. Buffett pulled another $3 billion net from the portfolio, despite the 20% drop in April that provided "cheap" prices. Does he believe there is still no real benefit?….
▪️Cash - a record $344 billion (about 13% of S&P 500 capital). The high Fed rate and 4%+ T-bill yields make sitting in cash quite painless.
▪️No buybacks for the fourth quarter. Even its own shares seem expensive after a +30% increase since April.
▪️Cautious position before handing over power to Greg Abel. Buffett does not want to "load up" his successor with expensive assets and leaves him "dry powder".
