Berkshire Hathaway,Warren Buffett's company,reported on Saturday that while Apple Inc.has been hitting new highs,he held 798 million shares in the first quarter.By the second quarter,he significantly reduced his holdings to 400 million shares.He cashed out approximately $88 billion,making Apple his top-heavy stock position.
Buffett is indeed the "Oracle of Omaha".The latest market capitalization of Apple Inc.is $3.3 trillion,Microsoft's is $3 trillion,and NVIDIA's is a mere $2.6 trillion.Despite Apple's market cap far exceeding those of Microsoft and NVIDIA,Buffett still made a substantial reduction in Apple.
Between July 30th and August 1st,Buffett sold a total of $779 million worth of Bank of America Corp.shares.He still holds 942 million shares of Bank of America,valued at $37.2 billion.Buffett bought Bank of America shares in 2011 at a price of $5 each.
So far this year,Bank of America has risen by 31%,followed by a more than 10% drop in stock price.The closing price on Friday was $37.58,making Bank of America Buffett's second-largest stock position.
It seems that Buffett's success is not only due to his strategic vision in selecting high-quality,growing companies but also his ability to sell off stocks at high prices,not making the last penny.Both of Buffett's major stock positions have seen significant reductions and cashing out.According to Buffett's self-created indicator,the total market value of the stock market should be equivalent to the Gross National Product,which is a reasonable valuation at 1:1.This indicator has now reached 180,indicating that the stock market already has bubbles.
At the beginning of 2022,Buffett's indicator once exceeded 200%.In the following year,the average decline of the U.S.stock market exceeded 20%,which shows that the high valuation level of the market indeed contains higher risks,so Buffett holds a large amount of U.S.dollars.
Now,Buffett holds $277 billion in cash,which is equivalent to the market value of Kweichow Moutai,with a large amount of funds available for bottom-fishing.As for why he reduced his holdings in Apple and Bank of America,Buffett has always been silent about his reasons and intentions for selling.Perhaps the reduction itself is the best explanation; he believes that the valuation of the U.S.stock market is too high and needs adjustment,so he sold.
Due to the weak economic data released by the United States,coupled with the Federal Reserve's expected interest rate hike in September,some funds have begun to withdraw from the U.S.stock market.Last week,the Dow Jones Industrial Average,the S&P 500,and the Nasdaq Composite have fallen 4%,5.8%,and 10.2%,respectively,from their yearly highs.
Although the current decline in U.S.stocks,as long as it does not exceed 20%,is still within the normal range of adjustments.However,if the three major stock indices continue to decline next week,especially if the Nasdaq continues to fall,it will inevitably lead to a decline in the S&P 500,and subsequently affect the decline of the Dow Jones Industrial Average.
Recently,I saw a netizen on the headline news who bought stocks such as Baiyunshan and Ping An of China,preparing to hold the stocks for 10 years without moving.Is he more bullish than Buffett?Ping An of China fell from 90 yuan to less than 42 yuan,how many years of dividends are needed to fill the gap?In the U.S.stock market,NVIDIA's performance did not meet expectations,and how to solve the stock and incremental issues of Kweichow Moutai in the A-share market.Less than 800 A-shares have risen this year,most public mutual funds are at a loss,and more and more fund investors are redeeming their funds.Now it seems that the four major banks also lack momentum,
where is the incremental capital for A-shares?
The above is only my personal opinion and is not intended as investment advice.Please act at your own risk and bear the gains and losses yourself.