Warren Buffett’s Berkshire Hathaway: Net Seller of Stocks for Six Straight Quarters

Warren Buffett’s Berkshire Hathaway has been making headlines lately for its strategic moves in the stock market. Despite being known for his long-term investment strategy, Buffett has been a net seller of stocks for six consecutive quarters, with net sales totaling over $17 billion in the first quarter alone.

One of the most talked-about purchases was Berkshire’s stake in insurer Chubb, which amounted to nearly 6% of the company for $6.7 billion. This investment came after months of speculation and secretive dealings, with Berkshire slowly building up its position with confidential treatment from regulators.

However, it’s not all about buying for Buffett. The Oracle of Omaha has been trimming his massive Apple bet and selling off other holdings like Louisiana-Pacific and HP. He even exited his position in Paramount at a loss. Despite these sales, Buffett remains open to putting more capital to work, but high prices in the market have given him pause.

With government bond yields on the rise, Buffett has been turning to cash as an attractive alternative to risk assets. He has been buying Treasury bills yielding over 5% at weekly auctions, building up Berkshire’s cash hoard to a record $189 billion in the first quarter. Buffett has even hinted that the cash pile could reach $200 billion by the end of June.

While some may question Buffett’s decision to hold onto so much cash, he remains confident in his strategy. He is waiting for the right opportunity to make a low-risk, high-reward investment, similar to his successful bet on Japanese trading houses a few years ago.

In the meantime, Buffett is content to bide his time and wait for the perfect opportunity to deploy Berkshire’s cash. As he famously said, “We’d love to spend it, but we won’t spend it unless we think [an investment] … has very little risk and can make us a lot of money.” Buffett’s patience and discipline have served him well in the past, and it seems he is sticking to his proven investment principles in the current market environment.