Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, is making headlines once again for his strategic moves in the stock market. According to veteran strategist Paul Dietrich, Buffett is selling off stocks like Apple because he believes the market is overvalued and a crash or recession is on the horizon.
Dietrich told Business Insider that Buffett is cashing in on the current high market prices, but he will be ready to reinvest once the market takes a downturn. Berkshire Hathaway sold over $17 billion worth of stocks last quarter, with Apple accounting for the majority of the sales. This move increased Berkshire’s cash reserves to a record $189 billion, a figure Buffett expects to exceed $200 billion by the end of June.
Buffett’s decision to hold onto such a large cash reserve is not new. He has a history of making strategic investments during economic downturns, striking lucrative deals with companies like Goldman Sachs and General Electric during the Great Recession. Dietrich emphasized that Buffett’s approach aligns with his value investing philosophy of buying low and selling high.
While some of the world’s wealthiest stockholders, including Jeff Bezos and Mark Zuckerberg, have been selling off shares in recent months, Buffett’s move to cash in may signal a broader trend in the market. Dietrich believes that Buffett will be ready to capitalize on lower prices once the market corrects itself.
Despite warnings of a looming downturn from Dietrich and others, the stock market and economy have continued to defy expectations. However, Buffett’s strategic moves suggest that he is prepared for whatever may come next. As the saying goes, “Buy low and sell high” — and Buffett seems to be following that advice to a tee.
