Warren Buffett is selling a lot stocks late 2023. Should we be worried?

Berkshire Hathaway Inc (BRK-B)
NYSE
394
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SG
Stock Geek
NOV 15, 2023

Warren Buffett just updated his portfolio. He sold 13 stocks and bought only 4 stocks. 7 of those 13 sells he completely sold out of. Is Buffett worried about the market?

Here are Buffett’s 4 buys below. Notice none of them are large relative to his portfolio.

Here are the 13 stock that Buffett sold. The 7 stocks he completely sold out of were: Activision Blizzard, General Motors, Celanese, Johnson & Johnson, Mondelez, Proctor & Gamble & UPS.

Buffett is left holding quite a lot of cash, $157 billion. Please note that he needs to hold a lot of cash as a safety net for his insurance business. This record amount of cash is in line with his company’s 20 year average relative to his portfolio.

He’s probably got most of this in short-term treasury bills. Right now 3-month treasury bills yield 5.4%. This shows that he still has faith in the U.S dollar, and let’s just say I don’t think he’ll be switching to bitcoin anytime soon.

One could argue Buffett does not mind having his money on the sidelines with a safe 5.4% return as opposed to the more volatile stock market.