On October 2, Warren Buffett’s Berkshire Hathaway announced its third-quarter financial report, further reducing its stake in Apple by selling approximately 100 million shares, representing 25% of its holdings, while increasing its cash reserves to a record high of $325.2 billion (over 10 trillion New Taiwan dollars).
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Commentary: Why has BTC been so weak recently amid rising U.S. stocks?
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The Black Swan Fund warns: U.S. stocks, cryptocurrencies, and gold may “flash crash” before the end of the year, indicating a significant market change is imminent.
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Benefiting from the explosive growth of the artificial intelligence (AI) industry and the Federal Reserve’s official announcement of a monetary easing cycle in September, U.S. stocks have experienced a genuine “bull market” this year. Companies like Apple, NVIDIA, and Tesla have seen their stock prices continue to rise, with the four major U.S. stock indices reaching new highs as if it were a routine occurrence.
However, can the U.S. economy truly achieve a soft landing? Will stocks continue to rise without looking back? While we cannot predict the future, we might look for clues in the decisions of the masters…
Berkshire Hathaway further cuts its Apple holdings in Q3
Warren Buffett’s Berkshire Hathaway released its third-quarter financial report on October 2, revealing that it has further reduced its Apple stock by selling approximately 100 million shares, which accounts for 25% of its holdings, while increasing its cash reserves to a record high of $325.2 billion (over 10 trillion New Taiwan dollars).
Since 2024, Berkshire Hathaway has sold more than 600 million shares of Apple, leaving it with approximately 300 million shares remaining. Overall, Berkshire Hathaway sold about $36.1 billion worth of stocks in Q3, including billions in Bank of America, marking the company’s eighth consecutive quarter of net stock sales.
Many analysts believe that Buffett’s actions suggest he thinks current stock valuations are too high and that he is preparing for a potential economic downturn…
Buffett Indicator reaches 200%
At the end of last month, Barchart also reminded investors on X (formerly Twitter) that the so-called “Buffett Indicator” has recently reached 200% for the first time in history, surpassing levels seen during the dot-com bubble and the global financial crisis.
The Buffett Indicator, introduced by Warren Buffett in 2001 in Fortune magazine, calculates the ratio of total U.S. stock market capitalization to GDP. Buffett stated that he uses this ratio to assess whether the market value of U.S. stocks is supported by the real economy. A very low ratio indicates that stock prices are undervalued, while a high ratio suggests that the market is overvaluing stocks.
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