Alex Wong
"There is a time for everything, and a season for every activity under the heavens: a time to be born and a time to die, a time to plant and a time to pluck up that which has been planted..." -Ecclesiastes, 3:1-8
Berkshire Hathaway: Buffett Sells And Does No Buybacks, Sending A Clear Warning To His Followers
Summary
- The Q3 interim report of Berkshire Hathaway revealed that Buffett continued to sell Apple and Bank of America to a degree well beyond a tactical trim.
- There were also no Berkshire Buybacks, zero, suggesting that Buffett feels that Berkshire is too pricey for the current market risk and its valuation.
- The above three facts taken together paint a dark and worrying picture of Buffett's opinion of the current market, potential rising tax rates and valuation.
- His several actions show a man on a mission to take aggressive action on Berkshire holdings and reshape Berkshire rather than leaving problems to his successors.
- Buffett's actions may be helpful for older investors like myself who have a small version of his challenge to leave assets in good shape for future heirs.
I am a retired professor, a retired investment adviser, and currently a private investor and full-time tennis pro. I bought my first stock in a custodial account in 1958. I am a student of history, particularly military and economic/market history. The intellectual passions of my retirement years have been markets, mathematics, and quantum theory. Recently I have found myself reading book after book on the thoughts and feelings of animals, and I believe they are subtly influencing some of my views. I have a cat I like a lot. I like to travel. I served in Vietnam.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of BRK.B, BAC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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