HomeWorldEconomyBerkshire Hathaway is dumping Apple stock and building its cash stockpile to record highs because Warren Buffett believes the government will raise capital gains taxes soon
Berkshire Hathaway is dumping Apple stock and building its cash stockpile to record highs because Warren Buffett believes the government will raise capital gains taxes soon
November 4, 2024
Berkshire Hathaway is dumping Apple stock and building its cash stockpile to record highs because Warren Buffett believes the government will raise capital gains taxes soon
Berkshire Hathaway’s cash reserves are at an all-time high of $325.2 billion as Warren Buffett quickly exits what has been one of his most profitable trades of the past decade.
The Oracle of Omaha and his conglomerate holding company Berkshire started to offload shares of Apple late last year, paring down a major bet on the tech company that it opened in 2016.
In just over a year, the company has sold more than two-thirds of its stake in Apple. Although the tech company is still its top holding at $69.9 billion worth of shares, at its peak, Apple made up $178 billion worth of Berkshire Hathaway’s portfolio.
Part of the reason for the massive equity sale lies in Buffett’s prediction that the capital-gains tax rate will increase over the next several years, possibly to help pay down the federal deficit, which stood at about 122% of the country’s GDP as of 2023.
So Kamala is winning is what he’s saying?
Makes sense I also took money off the table from some long term held assets for this very reason to put it to work into some less vulnerable positions earlier this summer.
I would wait until after the election. You have one candidate who wants to raise taxes on Capital Gains but not really defined if “over X amount” or “all” and another candidate who wants to cut-eliminate “all” taxes or jail 50% of the voters or remember what State he is in, so just wait it out.
He going to pay taxes regardless. He enjoys what he does:making money. Raising taxes on him or his firms isn’t going to stop him.
can’t he sell and buy back?
More on this subject from other reputable sources:
Any student of buffet knows this headline is incorrect. The more likely reason he selling is to free up liquidity for the next generation. He’s getting older and not going to live forever. He held many investments for a lifetime and did very well, now it’s time to realize gains and pass the baton. But also, he’s not happy With how b of a has carried itself lately, Mainly in failing to seize The opportunity to mark To market its bad debt. he spoke about this at his last summit.
So, his actions are saying, he believes Harris will win.
9 comments
Berkshire Hathaway’s cash reserves are at an all-time high of $325.2 billion as Warren Buffett quickly exits what has been one of his most profitable trades of the past decade.
The Oracle of Omaha and his conglomerate holding company Berkshire started to offload shares of Apple late last year, paring down a major bet on the tech company that it opened in 2016.
In just over a year, the company has sold more than two-thirds of its stake in Apple. Although the tech company is still its top holding at $69.9 billion worth of shares, at its peak, Apple made up $178 billion worth of Berkshire Hathaway’s portfolio.
Part of the reason for the massive equity sale lies in Buffett’s prediction that the capital-gains tax rate will increase over the next several years, possibly to help pay down the federal deficit, which stood at about 122% of the country’s GDP as of 2023.
So Kamala is winning is what he’s saying?
Makes sense I also took money off the table from some long term held assets for this very reason to put it to work into some less vulnerable positions earlier this summer.
I would wait until after the election. You have one candidate who wants to raise taxes on Capital Gains but not really defined if “over X amount” or “all” and another candidate who wants to cut-eliminate “all” taxes or jail 50% of the voters or remember what State he is in, so just wait it out.
He going to pay taxes regardless. He enjoys what he does:making money. Raising taxes on him or his firms isn’t going to stop him.
can’t he sell and buy back?
More on this subject from other reputable sources:
—
– Reuters (A): [Berkshire’s cash soars to $325 billion, Buffett sells Apple, Bank of America](https://www.reuters.com/markets/us/berkshires-cash-sets-record-buffett-sells-apple-bofa-operating-profit-falls-2024-11-02/)
– CNN.com (C+): [Berkshire’s cash soars to $325 billion as Buffett sells Apple, BofA; operating profit falls](https://www.cnn.com/2024/11/02/business/berkshire-buffett-sells-apple-bofa/)
– Associated Press (A-): [Berkshire Hathaway earnings: Buffett sits on over $325 billion cash](https://apnews.com/article/warren-buffett-berkshire-hathaway-earnings-profit-6f2772721d5d8f00578f8265c70db3d1)
– CNBC (B): [Berkshire Hathaway’s cash fortress tops $300 billion as Buffett sells more stock, freezes buybacks](https://www.cnbc.com/2024/11/02/berkshire-hathaways-cash-fortress-tops-300-billion-as-buffett-sells-more-stock-freezes-buybacks.html)
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Any student of buffet knows this headline is incorrect. The more likely reason he selling is to free up liquidity for the next generation. He’s getting older and not going to live forever. He held many investments for a lifetime and did very well, now it’s time to realize gains and pass the baton. But also, he’s not happy With how b of a has carried itself lately, Mainly in failing to seize The opportunity to mark To market its bad debt. he spoke about this at his last summit.
So, his actions are saying, he believes Harris will win.
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