The ambitious strategies of Warren Buffett, a well-known American investor and entrepreneur, continue to arouse interest and discussion in the financial world.
As of June 2024, Buffett's fortune was estimated at $139 billion, which puts him among the richest people on the planet and makes him one of the leaders in terms of wealth among American citizens.
Warren Buffett's main strategy is aimed at long-term increase capital and maintaining the financial stability of his Berkshire Hathaway company through strategic investments and careful asset management.
Buffett applies a professional and informed approach to investments based on a thorough analysis of companies, their financial stability and market position, which allows him to make informed decisions and effectively manage his investments.
Recently, during his speech last Saturday, Buffett announced that in the third quarter he continued to reduce his investments in Apple and other companies, which provided Berkshire Hathaway with a significant profit in the amount of 97 billion dollars. These actions made it possible to increase the volume of the company's cash assets to an unprecedented level.; 325 billion dollars, which is 28% of Berkshire's total assets at once and is the highest figure since 1990. The increase in cash has prompted many analysts to think about the reasons for the stock sell-off.
At the same time, Apple shares are now trading at a ratio 30 times higher than the projected profit for next year, as indicated by an analysis from FactSet. Darren Pollock, fund manager at Cheviot and a Berkshire shareholder, clarifies: when Buffett bought these shares, their ratio was about 12-13, while Apple's growth rate was significantly higher.
"In situations of stock revaluation, Berkshire prefers to accumulate cash, as Buffett discovers fewer and fewer attractive investment opportunities," Pollock adds. "His strategy does not follow market sentiment. Selling Apple shares and creating cash reserves at the peak level of the market is a symbolic approach typical of Buffett.
