In the world of high finance – there are few bigger names than the Oracle of Omaha himself – Warren Buffett.
Much like EF Hutton before – when he talks – people listen…
And – when Warren Buffett makes a move – Wall Street watches.
That makes sense though, right? I mean, he’s only one of the most successful investors of all time. In fact, if there were a Mt. Rushmore finance and trading – Warren’s face would be right there next to Peter Lynch and Jesse Livermore.
So, it makes sense that people pay attention to the moves he’s making…
And what he’s doing now has people scratching their heads.
However, it won’t be long until they following suit – because Warren does NOTHING on a whim.
Everything this man does is well thought out and calculated – and most importantly – researched to the Nth Degree.
So, what’s the Oracle doing now that has people so entranced in his movements?
Keep reading to find out!
So…
What’s the latest twist?
Buffett’s beloved Berkshire Hathaway (BRK.A, BRK.B) trimmed a bit more off its Apple (AAPL) stake this quarter…
Now, rumor is that he hasn’t fallen out of love with his favorite tech stock just yet – despite some snips here and there – but it has people on edge.
The iPhone maker still holds a starring role in Berkshire’s portfolio – so, what’s the Oracle of Omaha up to?
Even more…
Why has he all of a sudden fallen in love with cash? Let’s break it down…
Berkshire Hathaway now holds about $70 billion in Apple shares – a significant drop from its jaw-dropping $174 billion position at the start of the year.
Still, even with this slimmer Apple holding – it remains Berkshire’s largest investment by far.
Buffett’s trimming strategy isn’t about bailing on Apple…
But rather making a few calculated moves with Berkshire’s cash. In fact, he’s amassed a record-setting $325 billion in cash – and all of this cheddar is just sitting there, waiting.
Why?
Most likely because that given today’s lofty stock valuations – it seems Buffett’s finding the market a little too rich for his taste – so he’s taking his time and sitting on that cash pile until something more appetizing comes along.
For most of the markets…
This looks like a tax (and price) play.
Holding onto cash isn’t exactly new for Berkshire – in fact, the firm has paused its share buybacks for the first time since 2018.
Typically, when companies halt buybacks – it’s because their own stock is looking a bit too expensive. So, could Buffett be eyeing Berkshire’s stock, but hoping for a markdown?
Maybe.
For now, he’s letting that cash stack grow while potentially avoiding a tax hit.
With capital gains taxes expected to rise – sitting on cash could be a strategic win – allowing him to dodge the dreaded tax bill for now.
If you’re inspired by Buffett’s approach and have investments in a taxable account – taking some gains off the table might be worth considering…
Especially if the taxman’s looming.
With the election over – and hopefully a subduing of the market volatility – maybe Warren has something much bigger in mind?
Of course, being the classic contrarian…
I don’t know if he’s going to buy with prices trending up.
In Buffett’s book, patience is a virtue…
And if it’s good enough for the Oracle of Omaha – it might be worth keeping in mind.
In the end, Buffett’s trimming of Apple isn’t exactly a breakup…
Just a slight diet.
Berkshire still loves Apple – but it seems it’s intent on playing the long game.
Because with $325 billion in cash – Buffett’s got options…
He’s just waiting for the right moment to pounce.
So, while you watch the market’s react to the end of the election cycle remember:
Sometimes, the best move is no move at all.
You know who knows that better than anybody? Members of GorillaTrades…
As they understand that just because something looks like a good move – doesn’t mean it is. Stocks can turn on your worse than a rabid dog.
That’s why before GorillaTrades ever pulls the trigger on a profit opportunity – we make sure the numbers behind it are REAL.
If the data isn’t there – then we let it lie. Plain and simple.
We’d love to have you around for the next round of money makers – and with the markets in that post-election lovefest…
Now is the perfect time to join.
However, we understand that there are people that would rather do everything for themselves.
But please keep in mind – the market with be changing with a new president…
If you want somebody to help you navigate those new waters – just know – we’re always here.
Until then, pay attention to what the Oracle is doing…
It may show you the path to new profits!
“We don’t get paid for being busy, we get paid for being right.” – Warren Buffett
