Where Did Warren Buffett Get His Cash Reserves?

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You’ve likely read headlines claiming Warren Buffett has a record $325B in cash.

But what stocks did he sell to achieve those cash reserves?

He’s dumping 2 stocks in particular – here’s why:

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These are the two stocks Buffett’s been dumping:

Bank of America shares

Apple shares

After hearing why, you’ll agree with his logic.

Let’s start with Bank of America:

Buffett sold a whopping 23% of his BoA holding since July.

Selling bank stocks isn’t anything new for the billionaire. In prior years, Buffett dumped:

Wells Fargo shares

Goldman Sachs shares

JPMorgan Chase shares

So what gives?

Considering all the bank failures we saw last year, Buffett selling bank stocks makes sense.

Would you want to own bank stocks in today's climate? I wouldn’t.

In fact, commercial banks currently hold the most unrealized losses in history.

Sure…the FDIC will insure depositors holding cash at failing banks.

But that doesn’t make them great stocks to own…generally speaking.

By the way…I’m not suggesting that ALL bank stocks are bad. Do your research.

Alright… let's look at his Apple shares.

Buffett constantly preaches Apple as an amazing investment.

Yet he’s been simultaneously dumping Apple stock like there’s no tomorrow.

At one point, Apple was nearly 50% of Berkshire’s entire equity portfolio.

Today? It’s still Buffett’s largest holding at 26%.

But that’s a massive drop-off.

At Berkshire’s annual meeting in May, he was asked why he sold Apple stock.

He claims selling now benefits Berkshire’s shareholders if the U.S. raises capital gains.

Basically…he expected taxes to rise in the future…and wanted to take a tax hit now rather than later.

Buffett likely predicted a Harris presidency instead of a Trump victory.

He wanted to pivot his strategy before news headlines announced her win.

Even the best investor can’t always be right.

Regardless of Buffett's reasoning, what will he do with his $325b in cash?

One of his famous quotes gives us the answer.

Buffett believes you'd invest better with just 20 moves in your entire career.

What does that mean?

It means that Buffett is perfectly fine with waiting.

Waiting until an amazing buying opportunity comes along.

The real money isn’t in the buying or the selling…it’s in the waiting.

Warren Buffett has been a patient investor his whole life.

It looks like his philosophy on investing hasn’t changed.

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