The Oracle of Omaha, Warren Buffett has made it clear this year that he hasn’t bought any stocks. At the beginning of the pandemic when the market went down, the oracle said that people shouldn’t rush to be a company and should be careful not to buy a liability, after saying all this, it is no doubt that the Sage of Omaha has been selling stocks and hasn’t bought any stocks this year. The Oracle of Omaha’s company Berkshire Hathaway has sold a lot of stocks and his sales related to the airline industry created a lot of controversy as the airline market started to see a rise after the government gave the companies bailouts. Warren Buffett sold his shares in Delta Airline, Southwest Air, United Airlines and American airline, saying the economy is changing and the airline industry will be affected real hard.
Although the airline stocks sale created a buzz, but it is surprising as other sales didn’t ring any bells. Warren Buffett sold a lot of stocks including over 80% stocks in Goldman Sachs Bank, completely sold off his shares at Philips, 3% of JP Morgan shares, Sirius Xm selling 4 million shares, Amazon, General motors and so many more. Surprisingly, warren Buffett said at one time that he had $137 billion spare cash to invest if there is a recession but why isn’t he investing during this recession?
Do we say Warren Buffet hasn’t seen anything attractive to invest his $137 billion on, or are the company he is selling off their shares no longer attractive? I will like to believe that the current stock prices is one factor why Buffett hasn’t seen any attractive company. We could also say that the Oracle of Omaha doesn’t understand the current market position seeing that retail traders like Robinhood users have turned the stock market to casino (this are just thoughts).
From what he said about the airline stocks he sold, it is visible that the reason Warren Buffett is selling and not buying is because he isn’t sure if the companies will be making as much profit as in the past due to consumer’s spending. Uncertainty will be one reason why Warren Buffett isn’t buying but rather selling.
I tried to understand why the Oracle of Omaha has been selling and hasn’t bought any stocks this year and I will like to hear your opinion about it. What do you think is the reason why Warren Buffett is selling and not buying stocks?