Warren Buffett has been widely praised for reducing his Apple stake and building a significant cash reserve before the recent market downturn. Social media is filled with admiration for Buffett’s moves, quoting his wisdom on market downturns. Berkshire Hathaway sold a net $134 billion of stocks in 2024 and amassed a record cash pile of $334 billion. Buffett reassured shareholders that despite the large cash position, the majority of their investments remain in equities. Berkshire cut its Apple holding by 67% and reduced its Bank of America stake by 34%. Although Apple shares have dropped 15% from their November highs, Buffett’s strategy aligns with his long-term investment philosophy. He has expressed dissatisfaction with banks and pointed to higher bond yields as reasons for selling Apple shares. Buffett’s bearish positioning could prove advantageous if the market continues to decline, providing him with opportunities to invest in undervalued assets. — news from Business Insider
