Warren Buffett sitting on a $325 billion cash pile! Why?
Berkshire Hathaway’s cash reserves have soared to a record high, now making up 28% of the company’s assets — the largest level since 1990.
The Oracle of Omaha has just made a surprising move: selling off a large chunk of his Apple holdings and other stocks, generating a massive $97 billion windfall for Berkshire Hathaway. Why?
Is Apple’s golden era of iPhone profits coming to an end? 📱➡️🤖
This week, Apple cautioned investors that its future products may never match the profitability of the iPhone as it shifts focus — and capital — towards artificial intelligence. Facing fierce competition from tech giants like Alphabet (Google's parent company).
Is Warren Buffett preparing for a higher capital-gains tax? 📉💸
Part of Buffett’s surprising decision to sell off massive equity holdings, including Apple, may be tied to a strategic prediction: a potential increase in the capital-gains tax rate. With the federal deficit at 122% of the U.S. GDP, a tax hike could be on the horizon to help balance the books — and Buffett seems to be getting ahead of it.
Is Warren Buffett cashing out to set up his successor for success? 🔄💰
Some analysts think there’s more to Buffett’s massive sell-off than valuations alone. Jeff Muscatello of Douglass Winthrop suggests that with a leadership transition approaching, Buffett could be "clearing the decks" to prepare Berkshire Hathaway for new management under his heir, Greg Abel.
By building up a substantial cash reserve, Buffett seems to be ensuring Abel has flexibility and a fresh start when he steps in. As David Warren from Morningstar notes, Buffett may not want to leave his successor with complex holdings to manage.
Even as Buffett cashes in billions, Apple remains his largest individual holding — and he’s still Apple’s biggest individual shareholder. While he's selling shares, it seems the Oracle of Omaha isn’t ready to let go entirely.