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Warren Buffett's company reported an increase in liquidity: the legendary investor sold $36 billion worth of shares

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While investors are thinking about how to play the market on the eve of the US elections, Warren Buffett showed his “poker hand”. Reported by UNN with reference to Business Insider.

The 94-year-old boss of Berkshire Hathaway has refrained from endorsing Donald Trump or Kamala Harris, perhaps fearing a negative reaction for shareholders. At the same time, Buffett's conglomerate's third-quarter earnings provided new evidence of how the famous investor is removing some chips from the table.

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Buffett's team sold $36 billion worth of shares and made purchases of only $1.5 billion, making it their eighth consecutive quarter as net sellers, Business Insider reports.

Between July and September 30, Berkshire Hathaway increased its cash, treasury bills, and other liquid investments to an unprecedented $325 billion (or $310 billion less nearly $15 billion in payables for the purchase of treasury bills).

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Importantly, Berkshire cut its bets on Apple and Bank of America, two of its largest equity positions entering the quarter. It also cut its stake in the iPhone maker by 60% between January and September, reducing its value from about $174 billion to $70 billion.

At the annual meeting held in May last year, Buffett had already hinted that the cuts in the tech company made in the first quarter were partly motivated by tax consequences.

AddendumAddendum

After buying back $20 billion worth of Berkshire shares from the beginning of 2022 to June 30, 2024, Buffett did not buy back a single share last quarter. This is a strong signal that the investor no longer sees his company's shares as a bargain after they rose more than 20% this year to record highs.

“When the world's most famous living investor continues to sell stocks and sit on a significant pile of cash, it tells you something very important about the state of the market,” Russ Mould, AJ Bell's chief investment officer, said in a note on Monday.

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