- After Warren Buffett Sold $ 134 billion in shares in 2024 and is on a treasury battery of $ 334 billion, an analyst said that “the Oracle of Omaha” had seen the current sale up to come. Although it is unlikely that Buffett will take great steps during current market disorders, some believe that he will look internationally or will complete his insurance business.
In the midst of the stock market sale, Berkshire Hathaway, Warren Buffett, the recent capital movements suggest that he was preparing, according to an analyst.
After having released more than 10% compared to its last peak, the Nasdaq remains in correction territory. The S&P 500 also established a correction, although the Friday rally has made its decline less than 10% compared to its record of all time.
This highlighted the recent treasury of Berkshire as particularly premonitory. When asked if Buffett had seen the upcoming sale, Armando Gonzalez, founder of the research platform fed by BigData.com, said the evidence suggests that he did it.
“Buffett’s actions in the past year have been an example of a positioning manual for turbulence,” he said in an e-mail answer to the questions of Fortune.
Berkshire sold $ 134 billion in shares in 2024, ending the year with a TASS of cash of $ 334.2 billion, twice a year and more than its 272 billion dollar stock portfolio.
Gonzalez also noted that the recent comments from Buffett have been riddled with caution, emphasizing inflationary concerns and geopolitical uncertainty. For example, he warned That President Donald Trump’s prices will increase prices.
“History shows when Buffett becomes the net seller, he often plans a period of performance on the lower market,” said Gonzalez. “And once again, Omaha’s Oracle seems to have been ahead of the curve.”
With actions well outside their heights, this raises the question: will the famous buffett concerned with the value begin to deploy his money by making big purchases?
Certainly, Berkshire has made moderate stock purchases. But preferring good deals, Buffett historically seeks to invest massively in companies when the evaluations are low. During the 2008 financial crisis summit, for example, Buffett deployed $ 3 billion in General Electric, whose equity price had filed.
In his last letter to Berkshire shareholders, Buffett reiterated his opinion for several years that the assessments have remained high.
Gonzalez said it is possible that Buffett can start buying, but only if real good deals are emerging, noting that his history shows a deep aversion in a hurry, even when the markets fall.
“It has no interest in timing the buttocks on the market, and it does not pursue short-term rebounds,” he said. “Instead, he expects moments when fear means that the prices of the levels where the equation of risk-reversal is decisive in his favor.”
If Buffett must finally choose a big purchase, Gonzalez expects that his next movement is used with a scalpel rather than on a “wide market splash”, if necessary.
“In the world of Buffett, patience is more than a virtue, it’s a weapon,” he added.
Although it is uncertain if Buffett goes ahead with an agreement during the current sale of the market, said Cathy Seifert of CFRA Research Fortune She would not be surprised if Berkshire completes her insurance assets.
She added that the evaluations are still not very cheap, while the cash Buffett has parked in the bonds of the Treasury gives it a good performance and the competitive environment for transactions has changed.
In addition, Buffett has expressed great interest in Japanese commercial companies, suggesting “an increasing appetite for international diversification,” said Gonzalez.
Since 2019, Berkshire has invested in the five largest Japanese “Sogo Shosha”, which invest in all sectors at national and abroad. Commercial houses – Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo – use “in a somewhat similar way to Berkshire herself”, wrote Buffett in his annual letter.
While Buffett is sitting on his silver battery, his deployable funds can increase even more like rumors of a rare Berkshire sales circle.
THE Wall Street Journal reported that the Brokerage Compass of Real Estate was in advanced talks to acquire Berkshire Hathaway’s HomeServices of America.
According to the Berkshire annual report, HomeServices has 820 brokerage offices and 270 franchisees in 2024.
Berkshire Hathaway has not returned Fortune Comment request.
This story was initially presented on Fortune.com
