Warren Buffett dumps 2 investments he’s told Americans to buy for years. Should ordinary inventors do the same?

Core Viewpoint - Warren Buffett's recent actions, including the complete exit from two S&P 500 ETFs and a growing cash reserve, have raised concerns among investors about a potential market downturn, although experts suggest this should not trigger panic among retail investors [1][2][3]. Group 1: Berkshire Hathaway's Investment Strategy - Berkshire Hathaway's exit from the Vanguard S&P 500 ETF and SPDR S&P 500 ETF Trust, valued at $45.3 million within a $267 billion portfolio, may indicate a strategy to refine its holdings rather than a sign of impending market collapse [2][3]. - The decision to divest from these established ETFs could reflect concerns regarding market valuations, increased volatility, or a shift towards individual stock selection [2][3]. Group 2: Buffett's Investment Philosophy - Warren Buffett has historically advocated for a long-term investment approach, emphasizing low-risk index funds, and has indicated that a significant portion of his estate will be allocated to an S&P 500 index fund [5]. - Despite recent market volatility, Buffett's long-term investment philosophy suggests that short-term market fluctuations should not deter investors from their long-term goals [7]. Group 3: Market Context and Investor Sentiment - The current market volatility, influenced by U.S. tariff uncertainties, has led many investors and analysts to speculate about a potential recession [1]. - Buffett's actions may be causing investors to reevaluate their own portfolios, highlighting the importance of maintaining a long-term perspective in investment strategies [3][6].