Nothing lasts forever, not even the love that a savvy investor has for their favorite stocks. Even Warren Buffett, one of the most respected and consistent investors around, has been known to shake things up now and again. As the chairman of Berkshire Hathaway and one of the best-known billionaires on the scene, Buffett is a decision-maker whose choices echo throughout the financial world, down to individual investors.
Retirees are earning up to $1K extra income per month from home — here’s how you can, too.
Simply put, people pay attention to Buffett’s choices, looking closely at the stocks he dumps and the stocks he picks up. And Buffett ended 2024 by making some big moves, even with his long-held stocks. It’s worth taking a look at what he sold and discussing with your financial advisor whether similar moves align with your goals.
Apple (AAPL)
One of Buffett’s more notable decisions involved cutting his company’s shares of Apple stock by 25%, which still leaves them with around 300 million shares — but represents a significant paring down. The decision was surprising, given that Apple remains in the top five of Berkshire Hathaway’s portfolio by number of shares and ranks number one by market value.
So, why did Buffett sell so many shares? According to Forbes, Buffett cited concerns that stocks are trading above their intrinsic value and that capital gains taxes may rise.
Bank of America (BAC)
In July 2024, the Oracle of Omaha, as Buffett is called, directed Berkshire Hathaway to start unloading Bank of America, selling over 260 million shares for more than $10 billion. Berkshire Hathaway’s shares of Bank of America have now fallen to about 10%. Again, why would the company dump so many shares of a stock it has held for quite a while?
These actions align with Berkshire Hathaway’s plan to boost its cash pile, and quickly. As Business Insider describes it, “Berkshire’s cash pile now exceeds the total value of the company just over a decade ago and accounted for a hefty 27% of its $1.15 trillion of assets at the end of September.”
Capital One (COF)
During 2024, Berkshire Hathaway also reduced its shares of Capital One, even after snapping up shares only a few years ago — a gesture that was especially meaningful during a volatile market period. It seems as though Capital One stock was caught up in an overall selling spree that also included Paramount, Snowflake, Chevron, and Floor & Decor.
Some experts have speculated that this share-cutting bonanza is driven by the company’s desire to stack cash, in no small part because it’s hunting for bargains amid high valuations — and is willing to wait for the right opportunities.
Finally hit your $50,000 savings goal? Unlock your wealth potential with these 3 smart money moves.
Regardless of whether you agree with Buffett’s specific sales, his decision to shake things up is a reminder to review your own portfolio regularly and assess whether your current positions are serving you.
More From GOBankingRates
- How Middle-Class Earners Are Quietly Becoming Millionaires -- and You Can, Too
- 4 Financial Goals Suze Orman Says You Should Have Achieved By Age 50
- 4 Financial Steps Most People Never Consider -- and It's Costing Them
- What a Bill Collector Told Dave Ramsey's Wife That Transformed His Views on Debt
This article originally appeared on GOBankingRates.com: Warren Buffett’s Biggest Stock Dumps From the Last Quarter — Do You Own Any of These?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
