Why Warren Buffett’s portfolio changes send a ‘cautious’ signal to investors

If you want to invest like Buffett, look no further than his recent portfolio shakeup.

Latest news from Berkshire Hathaway 13F Archive The third-quarter results revealed something noteworthy: The famous investor sold more assets than he bought, and retail investors should take note given his impressive track record.

“The message is to be cautious… I think he’s going to be in trouble next year,” Lee Munson, president of Portfolio Wealth, told Yahoo Finance Live.

Monson added: “He didn’t see any deals that screamed… It’s hard to find good companies at reasonable valuations.”

Since Jan. 1, Buffett has sold about $23.6 billion worth of stocks after buying them, making him a net seller of stocks for the year, in contrast to being a net buyer as he rebalances his portfolio in 2022.

Berkshire Hathaway ended the third quarter with a record cash of $157.2 billion, up from $147.4 billion in the previous quarter.

Morningstar analyst Gregory Warren told Yahoo Finance that Buffett’s recent decisions reflect his unwavering “patience,” which the Oracle of Omaha himself has emphasized as the key to successful investing.

“Discipline has kept Berkshire Hathaway from making big mistakes,” Warren said. “Their cash balance is where it is now because they haven’t made a lot of stupid decisions over time.”

Warren attributed Berkshire’s third-quarter sell-off to “liquidating” some of the insurance company’s legacy assets.

Berkshire Hathaway quits GM job (General Motors),Procter(PG) and Johnson & Johnson (Johnson & Johnson), etc., in the third quarter, they also reduced their holdings of HP (HPQ), Amazon (Amazon) and Chevron (CVX).

The company holds shares in its top position, Apple (AAPLStocks, which currently account for half of Berkshire’s stock portfolio, were unchanged. The same goes for Buffett’s other major stock holdings besides Chevron.

One analyst said it was an investment strategy that showed his unwavering confidence in top stocks.

“Buffett sees dark clouds over General Motors and other companies, but blue skies ahead for Apple,” Wedbush senior equity analyst Dan Ives told Yahoo Finance. “This is Cupertino. The next phase of the growth story begins, and Buffett knows… selling Apple here will be like leaving a Taylor Swift concert after the first song.”

Enough said for Swifties.

If you invest like Buffett, your performance this year is likely to be roughly in line with the broader S&P. Berkshire stock, all Class A (BRK-A) and Category B (BRK-B), up about 16% since January 1, in line with the S&P 500 (^GSPC) An increase of 17.5%.

Xena Smith is the anchor of Yahoo Finance.Follow Smith on Twitter @SeanaNSmith. Tips on deals, mergers, activist situations, or anything else? Please email seanasmith@yahooinc.com.

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