Warren Buffet Dumping Shares in Bulk, What Does It Mean for Us?

Warren Buffet is World famous for being a Value Investor. He specializes in long-term investing, and one of his famous sayings is, "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes." Warren Buffet has sold almost $13 Billion worth of shares in the second quarter of this year alone.

Berkshire Hathaway's investment portfolio is worth over $350 Billion, So why is it such a big deal if some stocks were old recently?

In the past quarter, Berkshire Hathaway sold stocks worth over $13 Billion but only bought stocks of about $5 Billion in total. After continuing this series of dumping shares, (last quarter $Net $8 Billion in total), Berkshire Hatchway has almost stopped buying back its shares. After last quarter's reports, Berkshire Hathaway's Cash reserves and treasuries reached a record high after a 13% increase to a final 147 billion. This instance has happened over several quarters, allowing Warren Buffet to keep ample cash reserves when the economy crashes or enters recession mode.

Robert Kiyosaki, Author of the self-published worldwide bestselling Book Rich Dad Poor Dad, has spoken multiple statements about how Warren Buffet and Michael Burry have been putting funds on the sideline to prepare for the upcoming market crash to be able to take full advantage of it.

"Buffett is on the sideline with $147 billion; his money is in short-term Treasurys," Kiyosaki said on "Cavuto: Coast to Coast" on Tuesday. "Michael Burry of 'The Big Short,' he's shorting the market right now."

 Read Further: What Robert Kiyosaki recently said about us market crash?

"I just watch these guys waiting for the market to crash then go back in; it's a lot of money sitting on the sideline right now." the author of "Rich Dad Poor Dad" further added.

It doesn't help but instead leaves investors in a confused state about what they should do with their investments if the Oracle of Omaha, The Billionaire investor World famous for holding stocks for the long term, has $147 Billion in treasuries and cash reserves, not invested in the market.

Berkshire Hathaway recently sold shares in General Motors Co., McKesson Corp., and Chevron Corp.

Warren Buffet now has about $147 Billion worth of buying power in case the market goes south, just like he did in 2008, during the great recession, when he made deals with Goldman Sachs, General Electric, Bank of America, and many more companies. 

Warren Buffett's Share History

Keep in mind that Warren Buffet invested about $25 Billion in 2008, which made him almost $10 billion in profit within the first five years of these investments. What he could do with $147 billion, almost six times more than in 2008, remains to be seen.

What does this mean for us?

We are already in a state of hyperinflation, and we are paying higher prices for our food and essentials. We should limit our expenses to the greatest extent, save money and be prepared to care for ourselves and our families in the more challenging times. If we start saving early, we'll be better prepared to care for ourselves and our investments and investment opportunities.

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