November 04, 2024

Warren Buffett’s company, Berkshire Hathaway, has made a lot of money investing in stocks over the years. But lately, Buffett has been selling like crazy.
Bank of America’s stock is a longtime favorite of Berkshire. But Buffett’s company has sold the bank’s stock in 10 of the past 11 weeks, as of this writing.
Berkshire reduced its position from slightly more than 1 billion shares to about 814 million. That’s about a 20% reduction in the company’s third-largest holding in roughly three months.
Buffett’s firm also reduced its stake in Apple by 60%. You would think he’s gearing up for a market meltdown or something.
Similarly, Dell Technologies founder, chair, and CEO Michael Dell is selling. He reduced his position in the company from 33.4 million shares in March to 18.3 million shares in October – a 45% reduction. Dell sold $2.3 billion in stock alone last month after a 55% rise in the share price due to AI speculation.
And Dell isn’t just selling his company stock. The Michael and Susan Dell Foundation reduced its position in semiconductor firm Broadcom from 11.9 million shares at the beginning of the year to less than 4 million shares in June.
And let’s not forget NVIDIA’s insiders. The AI chip maker’s market capitalization is around $3 trillion and NVIDIA executives and directors have sold $1.8 billion of stock.
Seeing a pattern?
Now, investors sell for many reasons. Perhaps it’s financing a home or paying for higher education. So, this action isn’t a surefire sign of a peak.
Still, big money is selling. And it might mean we’re about to see some fireworks in the markets.