TECH - Buffett Holding Record Cash And Sells Apple Here Is How Much Cash You Should Hold | Benzinga
To gain an edge, this is what you need to know today.
Holding Cash
Please click here for an enlarged chart of Berkshire Hathaway Inc Class B (NYSE: BRK-B).
Note the following:
- This article is about the big picture, not an individual stock. The chart of BRK.B stock is being used to illustrate the point.
- The chart shows Warren Buffett’s company BRK.B broke out at the beginning of the year with the rest of the market.
- The chart shows that BRK.B has been consolidating in the resistance zone
- Buffett has made two important disclosures.
- Buffett is now holding a record amount of cash, $189B.
- Buffett reduced his Apple Inc (NASDAQ: AAPL) position by 22% to $135.4B as of March 31, 2024. Buffett was holding $174.3B of AAPL stock at the end of 2023. Buffett appears to have sold about 115M shares or about 13% of his AAPL holdings.
- Buffett said, "Today things aren’t attractive.” How much cash should you hold? The Arora Report provides this guidance every day in the protection band. Please see the "Protection Band And What To Do Now” section below.
- Buffett also said, "We’d love to spend it, but we won’t spend it unless we think they’re doing something that has very little risk and can make us a lot of money.” This is, in part, also the secret behind The Arora Report’s success and popularity among individual investors, investment advisors, and money managers. The Arora Report teaches investors not to rush in and buy just because you have cash. It is to your own benefit to wait for dips in the buy zones and to also not buy when market conditions are not favorable.
- In The Arora Report analysis, Buffett chose not to do a major buyback of BRK.B stock because he knows that BRK.B stock, along with the rest of the stock market, is overvalued.
- Prudent investors should note the following:
- Buffett sold a large amount of AAPL stock at a time when he was already holding record cash.
- Buffett sold AAPL stock in spite of Berkshire having ...