Berkshire: The world’s leading investor Warren Buffett has been continuously accumulating cash by reducing his investments in different companies for the last few months. His company Berkshire has currently accumulated about $276.9 billion in cash. This attitude of Warren Buffett, who always advises people to spend with the remaining money after investing, is surprising the whole world.
Reduced stake in Apple and Bank of America
Warren Buffet’s Berkshire Holdings has recently rapidly sold shares of companies like Apple and BofA. This trend was last seen in the year 2005. Berkshire had informed on August 3 that it has reduced its stake in Apple Inc by about 50 percent. Also, in July, it has reduced its stake in Bank of America by about 8.8 percent. Berkshire’s AGM was held in May. In this, Warren Buffet had indicated about this. He had said that he does not want to buy more equity anymore. He had said that unless I feel that we are going to earn a lot by investing money somewhere, we will not invest more.
The fear of recession in America is being blamed
In 2016, Berkshire had said that it has about 90 crore shares of Apple. These were bought for about $31 billion. Now it has only about 40 crore shares of Apple left, which are valued at about $84 billion. In the last two years, Berkshire has almost doubled its cash holding. This attitude of Warren Buffet is even more worrying amid the fear of recession in America and weak employment figures. Apart from this, corporate tax is also being considered a major reason for stock sale.
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