Since hardly anyone reads below the headline anymore, the recent one in the Financial Times—“Warren Buffett’s Berkshire Dumps Billions of Dollars of US Stocks”—is leading many people to think Buffett, the Oracle of Omaha whose favorite holding period is “forever,” has turned bearish. Rubbish.
In the past quarter, Buffett sold $13.3 billion worth of stock and bought $2.9 billion for a net sale of roughly $10 billion. Berkshire has $3 billion shy of a trillion dollars in assets. So if he sold $10 billion, that’s equivalent to selling 1% of Berkshire’s portfolio. Calling someone bearish because they sold “billions” might apply to mere mortals, but not Buffett. That would be like saying a shark has turned vegan because it spit out a fish bone.
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