Warren Buffett, the CEO of Berkshire Hathaway, has surprised many by selling large amounts of Apple stock. Berkshire Hathaway now has a record $325 billion in cash. This is the highest level ever for the company.
There are a few reasons why Buffett might be holding so much cash. One reason is that he thinks the stock market is overvalued. The market’s average price-to-earnings ratio is near 29.
This is the highest it has been in over a decade, except for the pandemic rebound in 2020. Buffett is known for being “fearful when others are greedy.” He wrote about this in his 1986 letter to shareholders. He said that it is dangerous when the market gets too excited.
He also said that stocks can’t keep doing better than the actual businesses forever. Even though Buffett is being careful, he has made a few new investments recently.
Buffett’s big Apple stock sale
He bought stakes in Pool Corporation and Domino’s Pizza. This shows that he still sees some good opportunities, even if he is cautious overall. Many people are waiting to see what Buffett will say in his annual letter to shareholders.
It will come out at the end of February. Buffett usually gives his thoughts on the market and his investment plans. People are also curious about what Buffett thinks of artificial intelligence (AI) as an investment.
There has been some recent news about AI that made the market go down for a bit. Buffett will likely give the same kind of advice he always does. He focuses on careful investing in strong, well-known companies.
He doesn’t usually chase the latest trends. Investors who want to learn more about how to handle market ups and downs should pay attention to what Buffett says later this month. It could give important insights into how to invest wisely when the market is changing a lot.
