Core Insights - Warren Buffett's final moves before retirement may signal caution for investors, particularly regarding the S&P 500's sustainability [2][10] - Berkshire Hathaway has transitioned to a net seller of stocks, indicating a strategic shift in investment approach [5][10] Group 1: Portfolio Adjustments - Berkshire sold its stakes in S&P 500 ETFs, including Vanguard S&P 500 ETF and SPDR S&P 500 ETF, during Q4 2024 [4] - Since the end of 2022, Berkshire has been actively trimming its portfolio, exiting positions in Citigroup and consistently selling shares of Apple and Bank of America [5] - The company has been a net seller of stocks amounting to $184 billion over the past two years [5] Group 2: Cash Reserves - Berkshire's cash and equivalents reached a record $382 billion by the end of Q3, reflecting its cautious stance [6][8] - The company has opted to earn steady interest from Treasury Bills rather than participating in the current bull market [8] Group 3: Investment Philosophy - Recent investments in UnitedHealth Group and Alphabet represent only a small fraction (2%) of Berkshire's total portfolio, indicating a selective approach [9] - Buffett's strategy suggests a belief that the current market levels are unsustainable, advocating for cash accumulation until better buying opportunities arise [10][11] - The investment philosophy emphasizes value investing and avoiding overpriced stocks, aligning with Buffett's contrarian approach [11][12]
Warren Buffett Left Wall Street 3 Deafening Warnings Before Retiring. Was Anyone Paying Attention?