A Rare Tech Bet, And Long Overdue

Berkshire reported owning 17.85 million shares of Alphabet as of September 30, instantly making it the conglomerate’s 10th-largest equity holding. The move is notable because Buffett has historically avoided most tech names, aside from massive bets on Apple and (briefly) IBM.

Ironically, both Buffett and the late Charlie Munger had publicly admitted they “blew it” by failing to buy Google in the 2000s, when its ad business was already boosting Berkshire-owned GEICO.

This quarter, Berkshire finally corrected that mistake.

Alphabet shares rose 1.7% in after-hours trading, reflecting the usual “Buffett bump” as investors interpret new Berkshire stakes as a seal of approval.

Apple Stake Trimmed Again, Now Down Nearly 75%

Berkshire slashed its Apple stake from 280 million to 238.2 million shares, continuing a dramatic multi-quarter reduction. At its peak, Berkshire held more than 900 million Apple shares.

Even after selling nearly three-quarters of that position, Apple remains Berkshire’s largest holding at $60.7 billion.

Buffett has repeatedly described Apple as “Berkshire’s best business,” but the sales suggest ongoing profit-taking and a more conservative strategy ahead of his departure.

Bank of America, DR Horton Cut, Chubb and Domino’s Boosted

Beyond the big Alphabet reveal, Berkshire was active across the portfolio:

Sold:

• 6% of Bank of America — though it remains Berkshire’s No. 3 holding
• Entire DR Horton stake
• Additional Apple shares (likely the bulk of the quarter’s $12.5B in sales)

Bought:

• More Chubb
• More Domino’s Pizza
• Other smaller positions

Overall, Berkshire bought $6.4B in stocks and sold $12.5B — its 12th straight quarter as a net seller.

Cash Pile Hits Record $381.7B Ahead of Leadership Transition

Berkshire’s cash rose to an unprecedented $381.7 billion, reflecting Buffett’s long-standing caution on frothy valuations and the lack of “elephant-sized” acquisition opportunities.

The record cash hoard also gives incoming CEO Greg Abel enormous flexibility as he prepares to take the reins of a $1.1 trillion conglomerate.

Why This Matters

This filing marks the end of an era — Buffett’s final disclosed portfolio as CEO — and provides clear signals about how Berkshire is positioning for the future:

• Alphabet is now a core strategic bet
• Apple dominance is fading
• Berkshire is preparing for leadership transition with a fortress balance sheet
• Valuation discipline remains the rule, not the exception

For markets, the headline is simple:

Buffett bought Google at last, and he’s going into retirement with a cautious but quietly shifting portfolio.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

The post Warren Buffett Reveals New $4.3B Alphabet Stake, And Sells More Apple Ahead of Buffett’s Exit first appeared on Finblog.

Berkshire’s third-quarter earnings surged 34% year-over-year to $13.5 billion, driven by a 200% rise in insurance underwriting income. Yet, Buffett continues to sell more stocks than he buys, unloading $12.5 billion in equities while purchasing just $6.4 billion, marking his 12th straight quarter as a net seller.

Analysts see Buffett’s caution as a warning sign. With T-bills yielding above 5%, Berkshire is opting for safety while Big Tech piles on debt to fund the AI spending boom. “Buffett is obviously put off by current market valuations,” said Jonathan Owen of TwentyFour Asset Management.

Despite the massive liquidity, Berkshire has not repurchased its own shares for five straight quarters — signaling Buffett may be bracing for a market downturn or economic slowdown before deploying cash.

Even as he steps down as CEO this year, Buffett’s philosophy remains clear: long-term bets on quality. Berkshire’s two never-sold holdings, American Express (AXP) and Coca-Cola (KO), remain portfolio cornerstones.

Both stocks delivered solid Q3 results — AXP with 19% EPS growth, and KO with robust 11% gains in 2025, reflecting Buffett’s enduring belief in enduring brands and steady dividends.

While Wall Street chases the AI boom, Buffett is hoarding cash — waiting patiently for value to return. As one analyst put it: “In a market obsessed with spending, Berkshire’s edge is that it doesn’t have to.”

The post Warren Buffett’s Berkshire Sits on Record $382 Billion Cash, Bigger Than Big Tech’s War Chest first appeared on Finblog.

From Out-of-Favor to Wall Street Darling

UnitedHealth Group (NYSE: UNH) went from a stock everyone wanted to dump to one suddenly commanding the attention of the world’s most famous investors.

In August 2025, Warren Buffett’s Berkshire Hathaway disclosed in its SEC 13F filing that it quietly scooped up roughly 5 million UnitedHealth shares — a new $1.57 billion position. The news sent shockwaves through markets: UNH stock surged 11% in after-hours trading and closed nearly 12% higher the next day.

Buffett wasn’t alone. Hedge fund titans Michael Burry and David Tepper also loaded up on UnitedHealth in Q2, signaling they see enormous rebound potential.

This flood of high-profile money came after a brutal collapse: UnitedHealth’s stock had been crushed, falling 45–50% year-to-date by mid-August. Once a Dow stalwart, it had become the single largest drag on the index.

The burning question: why are the world’s savviest investors piling into UnitedHealth now?

A Year of Pain: UnitedHealth’s Perfect Storm

By mid-2025, UnitedHealth was reeling from setbacks that would have crippled lesser companies.

• Surging medical costs: In Q2, UnitedHealth said 2025 expenses would come in $6.5 billion higher than expected, slashing EPS to ~$4.70 from $6.80 a year earlier. Its medical care ratio jumped 430 basis points — a sign premiums hadn’t kept up with inflation or healthcare usage.
• DOJ investigation: The Justice Department launched a criminal probe into UnitedHealth’s Medicare Advantage billing practices, questioning whether it inflated diagnoses to boost payouts. UNH insists it has “full confidence in its practices” and is cooperating.
• Cyberattack fallout: In 2024, Change Healthcare — a UnitedHealth subsidiary — was hacked, paralyzing payments nationwide. Months of disruption dented credibility and cost millions to repair.
• CEO assassination: In December 2024, Brian Thompson, CEO of UnitedHealthcare, was murdered in New York City. The shocking tragedy intensified public anger at insurers, fueling online outrage about denied claims and high costs.
• Leadership upheaval: CEO Andrew Witty resigned abruptly in mid-2025. Stephen Hemsley, UnitedHealth’s former long-time chief, returned, admitting the company underpriced policies and failed to adjust quickly.

The stock collapsed more than 50% from highs. By May, UnitedHealth alone accounted for 88% of the Dow Jones Industrial Average’s YTD decline. Once untouchable, the giant looked broken.

This, of course, is exactly when Warren Buffett tends to pounce.

Buffett’s Contrarian Play

Buffett’s $1.6 billion bet fits his classic pattern: buy a high-quality franchise when fear peaks.

• Timing: Berkshire built its 5 million-share stake quietly under confidential SEC treatment in Q2, revealed only in mid-August. Shares popped 11% immediately on the “Buffett effect.”
• Insurance DNA: Buffett knows insurance models better than anyone. From Geico to Gen Re, he has thrived by exploiting the “float” — collecting premiums now, paying claims later, and investing the spread. Health insurance is different but shares the same DNA.
• Valuation dislocation: Before Buffett’s buy was public, UNH traded at ~14× forward earnings — a 26% discount to its five-year average. At ~$300/share, the company was valued below 1× sales despite projected 2025 revenue above $360 billion. For Buffett, this was “a great company on sale.”
• Circle of competence: Though UNH is a healthcare name, Buffett likely views it as an insurance/finance play — firmly in his comfort zone.

As Charlie Munger once said, Buffett “likes a business with no surprises.” By stepping in after the bad news was priced in, Buffett may believe the worst is over.

Hedge Funds Double Down

Buffett isn’t the only one. Hedge funds piled into UNH in Q2 2025:

• Michael Burry (Scion Asset Management): Took call options on 350,000 shares and 20,000 shares outright. UNH made up 19% of Scion’s portfolio — a bold bet from the “Big Short” pessimist.
• David Tepper (Appaloosa Management): Boosted his UNH stake by 1,300% to 2.45 million shares (~$760 million), now his second-largest holding.
• Other funds: Renaissance Technologies, Naya Capital, Solel Partners, and Bluefin Capital all added UNH.

Not everyone agreed: Viking Global (Andreas Halvorsen) dumped its 3.5% UNH stake. But the weight of names like Buffett, Burry, and Tepper shifted the narrative.

As one report quipped: these investors are “doubling down while execution troubles turn friendly skies into turbulence.”

Why UnitedHealth Still Looks Attractive

Buffett and hedge funds likely see what the market missed:

1. Cheap valuation: P/E of ~14 vs. high-teens historical average, ~3% dividend yield, and >10% free cash flow yield.
2. Dominant franchise: 52 million health plan members, plus Optum’s fast-growing services arm (pharmacy, clinics, analytics) — which grew revenue 13% in Q2 despite earnings pressure.
3. Pricing reset: Premiums reset annually. For 2026, CMS raised Medicare Advantage reimbursement by >5% — a big relief for the largest provider (UNH). Employer and individual premiums are also rising.
4. Financial resilience: $14.3B H1 operating earnings, $7.2B Q2 operating cash flow, manageable debt, and continued buybacks/dividends ($4.5B in Q2).
5. Growth runway: Aging demographics = more Medicare Advantage enrollment. Optum expansion, AI-driven healthcare efficiency, and diversified revenue streams provide long-term growth.

In Wall Street consensus, 2025 is the trough. Analysts forecast recovery into 2026, with average price targets ranging $312–$400+. That implies 20–50% upside from current levels.

Market Reaction: The “Buffett Bump”

The reaction was immediate.

• Biggest single-day gain in 16 years: UNH surged 12% on Aug. 15, 2025 — the largest daily jump since the pandemic rebound in March 2020.
• Best week since 2009: Shares rose 20% in a week, lifting the Dow Jones to a new all-time high.
• Sector sympathy rally: Peers Humana and Elevance Health gained in response.

Analysts dubbed UNH the “Buffett trade of 2025.” Investors now see his stake as a confidence buffer: retail and institutional buyers pile in rather than risk missing a bottom.

Risks Still Loom

The bullish case isn’t risk-free.

• Medical costs could remain stubbornly high.
• The DOJ probe could uncover damaging practices.
• Political pressure for stricter regulation remains intense after the CEO assassination and public outrage.

But Buffett and peers are betting those are temporary storms, not permanent impairments.

Conclusion: A Classic Contrarian Bet

UnitedHealth’s saga in 2025 is a case study in contrarian investing.

A blue-chip giant battered by cost spikes, investigations, a cyberattack, and even a CEO assassination scared investors away. Yet, Buffett, Burry, and Tepper saw a fortress franchise temporarily mispriced.

They are wagering that UnitedHealth’s moat — massive membership, Optum’s diversification, financial strength, and pricing power — will prove enduring. If so, today’s chaos will look like an extraordinary buying opportunity in hindsight.

Buffett’s mantra applies perfectly: “Be fearful when others are greedy, and greedy when others are fearful.”

Right now, much of Wall Street is still fearful about UnitedHealth. Buffett and the hedge funds? They’re very greedy.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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The post Why Warren Buffett and Hedge Funds Are Betting on UnitedHealth Stock (UNH) first appeared on Finblog.

Related: Billionaire Investors Reveal Q1 2025 Portfolio Moves: Buffett, Ackman, Tepper, Burry & More

Warren Buffett – Berkshire Hathaway

Portfolio Tilt: Quiet blue-chip shifts with calculated bets
New Positions: $UNH, $NUE, $LEN, $DHI, $LAMR, $ALLE
Exited: $TMUS
Top Adds: $POOL (+136 %), $LEN.B (+18.6 %), $STZ (+11.6 %), $HEI.A (+11.4 %), $CVX (+2.9 %), $DPZ (+0.5 %)
Top Cuts: $AAPL (–6.7 %), $CHTR (–46.5 %), $FWONK (–14.1 %), $BAC (–4.2 %)

Bill Ackman – Pershing Square Capital

Portfolio Tilt: Bold tech and services plays
New Position: $AMZN (+5.82M shares)
Exited: $CP
Top Adds: $GOOGL, $BN, $HLT, $HTZ

Michael Burry – Scion Asset Management

Portfolio Tilt: Deep contrarian reset
New Buys: $UNH (calls + stock), $REGN (calls + stock), $LULU (calls + stock), $META (calls), $EL (calls + stock), $JD (calls), $BABA (calls), $ASML (calls), $VFC (calls), $BRKR, $MELI

Dan Loeb – Third Point

Portfolio Tilt: High-conviction, multi-stock builds
New: $COOP, $META, $FIX, $DHR, $WDAY, $RKT, $FLS, $DOCU, $GTLS, $SE, $RAL, $SABR, $CTEV, $TTAN, $ARDT, $ASIC
Exits: $EQT, $X, $DFS, $T, $HES, $PINS, $SDRL, $GB.WS, $NPWR.WS
Top Adds: $SN, $PRMB, $NVDA, $COF, $CSGP, $VST, $TLN, $MSFT, $CASY, $AMZN
Top Cuts: $FTV, $RBA, $TSM, $APO, $CRS

Chase Coleman – Tiger Global

Portfolio Tilt: Emerging new names, trimming overlaps
New: $CHYM, $BULL, $HNGE, $CRCL, $ETOR, $TFIN, $MNTN
Exits: $PDD, $TTAN
Top Adds: $XYZ, $RDDT, $AMZN
Top Cuts: $DASH, $WDAY, $CRWD, $NOW

David Einhorn – Greenlight Capital

Portfolio Tilt: Tactical clarity
New: $FLR, $CI, $VSCO, $SHC
Adds: $TEVA, $GPK, $WFRD
Exit: $DLTR
Reductions: $PTON, $SNX, $KD

Leon Cooperman – Omega & Related Funds

Portfolio Tilt: Focused refinement
Adds: $GEHC, $AESI
Exits: $LVS, $MSFT
Reductions: $GOOGL, $MP, $CI

David Tepper – Appaloosa Management

Portfolio Tilt: Strategic reorientation
New: $INTC, $RTX, $IQV, $UAL, $DAL, $WHR, $GT, $MHK
Exits: $AAPL PUT, $AVGO, $EXEEL, $LVS, $SPYX PUT, $SMH PUT, $WYNN
Top Adds: $UNH, $NVDA, $TSM, $XYZ
Top Cuts: $BABA, $PDD, $FXI, $ORCL

Starboard Releases 13F: Increases: $KVUE, $DSK, $AQN, $ALIT, $CRM, $ROG Decreases: $MTCH, $HR, $IJH, $PFE, $RIOT, $GDOT, $FTRE, $GDDY, $WIX New Stakes: $BDX, $TRIP

Superinvestor Portfolio Stats: Big Tech Still Rules, but Rotations Are Underway

The latest Q2 2025 13F filings confirm one thing — big tech dominance isn’t going anywhere. Microsoft ($MSFT), Alphabet ($GOOGL), Meta ($META), Amazon ($AMZN), and Apple ($AAPL) remain at the top of both the most-owned and highest portfolio weight rankings. But beneath the surface, there’s plenty of movement.

The Top 10 Most Owned Stocks chart shows familiar names across tech, consumer, and finance — a sign that superinvestors still anchor their portfolios in proven market leaders. The Top 10 by % Allocation list, however, reveals a few outliers like Carvana ($CVNA), which surged into the rankings thanks to high-conviction positions from select managers.

Q2 2025 Buying Trends: From Steady Blue-Chips to Aggressive Growth Bets

The Top Buys of Q2 2025 reveal strong inflows into UnitedHealth Group ($UNH), Amazon ($AMZN), Pinduoduo ($PDD), Lululemon ($LULU), and Bruker ($BRKR). By dollar volume, Amazon and UnitedHealth dominated the quarter, while niche plays like Crocs ($CROX) and Regeneron ($REGN) saw sharp percentage increases in investor conviction.

Looking at the past two quarters combined, Microsoft and Alphabet continue to attract steady buying interest, while energy plays like Valaris ($VAL) and turnaround bets like Uber ($UBER) have also gained traction.

Top 10 Stocks Most Sold – Q2 2025

1. Apple (AAPL) – Berkshire Hathaway offloaded around 20 million shares, lowering its stake by approximately 6.7% and generating roughly $4 billion in sales.
2. Bank of America (BAC) – The firm reduced its holdings by around 26 million shares, a cut of roughly 4.2%.
3. Charter Communications (CHTR) – Berkshire slashed this position by nearly 46.5%, exiting a substantial chunk of its stake.
4. T-Mobile (TMUS) – Fully exited by Berkshire in Q2, a clean divestment of its multi-billion-dollar position.
5. DaVita (DVA) – Marked among top positions reduced, with Berkshire trimming its exposure.
6. Meta Platforms (META) – Saudi Arabia’s Public Investment Fund (PIF) fully divested its holdings in Meta in Q2.
7. Shopify (SHOP) – PIF also sold its entire position in Shopify during Q2.
8. PayPal (PYPL) – Another full exit by PIF, as part of a broad retreat from key U.S. tech stocks.
9. Alibaba (BABA) – PIF divested its stake in Alibaba as well during the quarter.
10. FedEx (FDX) – PIF ended its investment in FedEx, completing its strand of divestitures in Q2.

What These Sales Mean

• Berkshire Hathaway continues shedding mature and high-cap positions—especially in tech and financials—suggesting a strategic rotation away from past holdings.
• Saudi Arabia’s PIF sharply pivoted away from U.S. consumer and tech equities, likely reallocating capital toward strategic sovereign investments and growth sectors at home.

What These Moves Signal

The Q2 filings paint a vivid picture:

• Buffett’s steady add-ons show continued confidence in select blue-chips and energy.
• Ackman and Loeb are leaning into growth sectors like tech and services.
• Tepper and Burry remain contrarians, repositioning heavily amid macro shifts.
• Cooperman, Einhorn, and Tiger Global appear laser-focused on high-conviction plays and trimming non-core exposure.

Q2 2025 shows that while big tech remains the backbone of superinvestor portfolios, there’s an undercurrent of strategic rotation — into health care, consumer growth stories, and select contrarian bets. The mix suggests managers are preparing for a market where defensive strength, secular growth, and opportunistic plays all matter.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

The post Billionaire Investors Reveal Q2 2025 Portfolio Moves: Buffett, Ackman, Tepper, Burry & More first appeared on Finblog.

While Warren Buffett continues to lean into his core blue-chip favorites with a few high-conviction adds, Bill Ackman is betting big on Uber and trimming back tech and hospitality. Meanwhile, David Tepper took an aggressive stance on rebalancing, cutting large swaths of his tech exposure. Michael Burry, in a sharp pivot, dumped every position except one. And NVIDIA, fresh off its meteoric AI rise, kept its strategic holdings untouched.

Let’s break down each portfolio in full detail:

Warren Buffett – Berkshire Hathaway

Total Portfolio Value: $258.7 Billion
Number of Stocks: 36

Buffett’s Q1 moves reflect a mix of quiet conviction and bold bets. While he modestly trimmed positions in major banks and telecom, he aggressively added to names like Constellation Brands ($STZ) and Pool Corp ($POOL), increasing those stakes by more than 100%. The Oracle of Omaha also added to $OXY, $SIRI, and $VRSN. Notably, he exited $NU and $C entirely.

Bill Ackman – Pershing Square Capital Management

Total Portfolio Value: $11.93 Billion
Number of Stocks: 11

Ackman made waves this quarter by closing out his position in $NKE—only to clarify later that it had been replaced by over-the-counter call options of equal value. More notably, Pershing took a brand-new position in $UBER, now the firm’s largest holding. Ackman also doubled down on $BN (Brookfield), $HTZ (Hertz), and $GOOGL (Alphabet Class A), while trimming exposure to $GOOG (Class C), $CMG, $HLT, and $CP.

• New Buy:
  • $UBER (30.3M shares, $2.21B)
• Exited:
  • $NKE (replaced by OTC calls)

David Tepper – Appaloosa Management

Total Portfolio Value: $5.57 Billion
Number of Stocks: 35

Tepper made aggressive reallocations in Q1, selling off large portions of major names including $MSFT, $NVDA, $QCOM, and $MU. He exited entirely from six companies, including $AMD and $INTC, while adding multiple new positions. $UBER was one of his biggest buys, with shares increasing by 113%. He also opened new stakes in $DB, $AVGO, $LHX, and $XYZ.

• New Positions:
  • $DB, $AVGO, $LHX, $XYZ
• Fully Exited:
  • $AMD, $FDX, $EQT, $AR, $EXE, $INTC

Michael Burry – Scion Asset Management

Portfolio Status: Now almost fully in cash

In a bold move reminiscent of 2022, Michael Burry liquidated every single holding from his portfolio—except for $EL (Estée Lauder), which now makes up 100% of Scion’s disclosed investments. He dumped all China exposure and exited $BABA, $JD, $BIDU, and $PDD entirely.

• New Holding:
  • $EL (100K shares, 50% of previous portfolio value)
• Fully Sold:
  • $BABA, $JD, $BIDU, $MOH, $PDD, $HCA, $BRKR, $VFC, $MAGN, $OSCR, $ACIC, $GOOS

NVIDIA – 13F-HR Filing

Reported Position Status: No changes reported

NVIDIA’s latest 13F-HR filing showed no new buys or sales. The firm continues to hold high-tech and AI-related firms including: $ARM, $APLD, $CRWV, $NBIS, $RXRX, $WRD

Summary by Action

Most Bought Stocks:

• UBER: Ackman (new buy), Tepper (+113%)
• Brookfield (BN): Ackman +17.52%
• GOOGL: Ackman +11.33%, Tepper +6.8%
• Estee Lauder (EL): Burry +100%
• POOL & STZ: Buffett +144% and +113% respectively
• DB, AVGO, LHX, XYZ: Tepper new buys

Most Sold or Reduced Stocks:

• Nike (NKE): Ackman exited, replaced with options
• Alibaba (BABA): Tepper -22%, Burry sold 100%
• JD.com: Tepper -23%, Burry exited
• Microsoft (MSFT): Tepper -47.42%
• NVDA, QCOM, ASML, ORCL: Tepper large reductions (50%+)
• BAC (Bank of America): Buffett -7.15%

Stocks Still Held by Multiple Funds:

• GOOG/GOOGL: Held by both Ackman & Tepper
• Uber: Strongest shared buy this quarter (Ackman & Tepper)
• Amazon (AMZN): Held by Buffett & Tepper (both reduced)

What These Moves Signal

The Q1 2025 13F filings show a market in transition. Big tech saw notable selling pressure from hedge funds like Appaloosa and Scion, while Buffett and Ackman leaned into safer or high-upside opportunities like $POOL, $UBER, and $STZ. Across the board, we’re seeing a more selective, defensive posture, with a few bold bets.

While institutional portfolios are not always forward indicators, they do reveal where billionaires believe opportunities—or risks—are emerging. Whether it’s Buffett adding to legacy consumer names or Ackman shifting into ride-sharing, the signals are clear: selectivity, conviction, and hedging are the names of the game in 2025.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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The post Billionaire Investors Reveal Q1 2025 Portfolio Moves: Buffett, Ackman, Tepper, Burry & More first appeared on Finblog.

Buffett, who transformed Berkshire from a struggling textile firm into a global conglomerate valued at over $900 billion, has led the company since 1965 and become a household name for his investing genius and homespun wisdom.

What’s next for Berkshire:

Vice Chairman Greg Abel, long seen as Buffett’s heir apparent, is expected to take over as CEO. Abel has overseen Berkshire’s vast non-insurance operations, including energy, railroads, and manufacturing, and has earned Buffett’s trust as his top lieutenant.

Buffett’s legacy:

• Under Buffett, Berkshire’s share price skyrocketed, and its portfolio grew to include Geico, BNSF Railway, Dairy Queen, See’s Candies, Apple, Coca-Cola, and Bank of America.
• Buffett became renowned for his value investing approach, disciplined capital allocation, and focus on long-term growth.
• Beyond business, Buffett pledged to give away the bulk of his fortune and co-founded the Giving Pledge with Bill Gates to encourage billionaire philanthropy.

What Buffett said: While Buffett’s official statement is expected soon, he has previously signalled confidence in Berkshire’s future without him.

“Berkshire is built to last,” Buffett said at past shareholder meetings.
“The culture is strong, the managers are outstanding, and the shareholders think like owners.”

More about: Warren Buffett Warns About Trump Tariffs: ‘Trade Should Not Be A Weapon’

The post Warren Buffett, 94, stepping down as Berkshire Hathaway CEO first appeared on Finblog.

Buffett’s comments come amid rising market volatility triggered by President Donald Trump’s sweeping tariffs on Chinese goods and the expiration of key trade loopholes.

Buffett on Trade and Tariffs

Buffett strongly opposed the use of tariffs as a foreign policy tool and warned of their long-term consequences for the U.S. economy.

“Trade should not be a weapon,” he said, drawing applause from the crowd.
“I do think that the more prosperous the rest of the world becomes, it won’t be at our expense, the more prosperous we’ll become, and the safer we’ll feel, and your children will feel someday.”

Without naming Trump, Buffett criticized what he sees as America’s combative posture in global trade:

“It’s a big mistake, in my view, when you have seven and a half billion people that don’t like you very well, and you got 300 million that are crowing in some way about how well they’ve done — I don’t think it’s right, and I don’t think it’s wise.”

He added:

“The United States won. I mean, we have become an incredibly important country, starting from nothing 250 years ago. There’s not been anything like it.”

Buffett also reiterated an idea he first proposed in a 2003 op-ed — import certificates to balance U.S. trade — calling it “gimmicky, but better than what we’re talking about now.”

“There’s no question that trade can be an act of war, and I think it’s led to bad things,” Buffett concluded.

On Investment Strategy and Market Conditions

Buffett emphasized that Berkshire is maintaining a cautious posture, sitting on record levels of cash while looking for opportunistic buys.

“We have made a lot of money by not being fully invested at times,” he said.
“Great deals are very unlikely to happen tomorrow but not in five years.”
“Berkshire is very, very, very opportunistic.”
He also revealed the firm recently came close to spending $10 billion on an undisclosed opportunity.

On Real Estate vs. Stocks

Buffett responded to a question from a Chinese shareholder in Toronto about real estate investment:

“In respect to real estate, it’s so much harder than stocks in terms of negotiation of deals, time spent, the involvement of multiple parties.”
“Stocks are more attractive than real estate.”

On Artificial Intelligence

When asked about the future of AI, Buffett passed the question to Vice Chairman Ajit Jain, who said Berkshire has not found meaningful opportunity in the sector yet.

Buffett added humorously:

“I wouldn’t trade everything that’s developed in AI over the next 10 years for Ajit.”

On Aging and Investing

In a lighter moment, Buffett likened the odds of finding a great business over time to the probability of dying as one ages:

“If you’re 10 years old, the chances you’re going to die the next day are low. You get to be 115 or something, it’s almost a cinch, particularly if you’re a male.”
“All the records are held by females in terms of age. And I tried to get Charlie to have a sex change so he could test it out,” he joked, referring to the late Vice Chairman Charlie Munger.
“He did pretty well for being a male, I’ll put it that way.”

Economic Outlook and Berkshire’s Position

Buffett’s remarks follow a turbulent quarter for the U.S. economy. First-quarter GDP contracted for the first time since 2022, and the White House’s 145% tariffs on Chinese imports triggered retaliation from Beijing.

Berkshire Hathaway reported a drop in Q1 earnings due to insurance losses but noted its cash pile rose to a record $347 billion as it continued to sell off equities, including major stakes in Apple and Bank of America.

The company warned of “considerable uncertainty” tied to tariffs and geopolitical shifts, saying it was not yet possible to predict their full impact.

Buffett, now 94, remains a closely watched voice in global markets. His comments offered both reassurance and realism for investors navigating what he called a “winner-take-all” global environment — one he believes the U.S. must approach with more humility and cooperation.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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As Warren Buffett wisely says: “The stock market is a device for transferring money from the impatient to the patient.“

Legendary investor Peter Lynch credited his wife with one of his best investment ideas. In the early 1980s, his wife Carolyn came home excited about a new product called Pampers—disposable diapers made by Procter & Gamble.

“Peter, these things are incredible,” she told him. “They save so much time.”

Lynch, who managed Fidelity’s Magellan Fund (the greatest hedge fund of all time), took note but initially did nothing.

Only after Carolyn mentioned it several more times did he research P&G’s financials, discovering a quality company with strong brands, consistent profits, and excellent management.

He built a massive position in P&G, watching it become one of his fund’s best performers.

Later, Lynch would famously advise: “The average person is exposed to interesting local companies and products years before professionals ever hear of them. And the average person can take advantage of these early observations.”

This experience shaped Lynch’s “buy what you know” philosophy—the idea that everyday consumers often spot excellent businesses before Wall Street does, simply by paying attention to products they use and love.

Here are the investment strategies in history by best investors:

1. Why Quality Investing is Important

Quality investing isn’t about finding the cheapest stocks or the fastest-growing companies. It’s about identifying exceptional businesses with strong fundamentals, competitive advantages, and the potential for sustained growth over many years.

When you focus on quality, you’re looking for companies built to last – businesses that can compound your wealth for decades, not just quarters.

The magic behind quality companies—often called compounders—is that they reinvest their profits to grow even more. This approach lets you sit back and watch your investment compound over time.

2. Warren Buffett: The Foundation of Quality Investing

Warren Buffett, arguably the most successful investor of all time, built his $100+ billion fortune by following a simple strategy: find wonderful businesses with durable competitive advantages and hold them long-term.

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price,” Buffett famously stated. This marked his transformation from a pure value investor (taught by Benjamin Graham) to a quality-focused investor.

Buffett’s Key Investing Principles:

1. Invest in What You Understand: Buffett calls this your “circle of competence.” Only invest in businesses you truly understand. You don’t need to comprehend every technical aspect, but you should grasp how the company makes money.
2. Buy and Hold: Once Buffett buys a quality company, he rarely sells. His famous quote, “Our favorite holding period is forever,” shows his belief in the power of long-term growth.
3. Look for Durable Competitive Advantages: Buffett seeks companies with “economic moats” – sustainable advantages that protect profits from competitors. These might include powerful brands, network effects, or unique assets.
4. Focus on Quality Management: Trustworthy, competent managers who allocate capital wisely are essential to long-term success.
5. Require Strong Returns on Equity: Quality companies consistently generate high returns on the money invested in the business without excessive debt.

Since taking control of Berkshire Hathaway in 1965, Buffett has delivered annual returns of 19.8% compared to the S&P 500’s 9.9%. Over nearly six decades, this difference in performance has created enormous wealth for Berkshire shareholders – a testament to the power of quality investing when practiced with discipline.

3. Peter Lynch: Finding Great Investments in Everyday Life

Peter Lynch, who managed Fidelity’s Magellan Fund from 1977 to 1990, is famous for his “buy what you know” philosophy. During his tenure, Lynch achieved an astonishing 29.2% annual return, turning every $10,000 invested into $280,000 by the time he retired.

Lynch believed that everyday consumers often spot excellent investments before Wall Street does, simply by paying attention to the products they use and love.

Lynch’s Quality Investing Approach:

1. Find Businesses with “Easy-to-Understand” Models: Look for companies with straightforward business models.
2. Use Your Consumer Knowledge: Pay attention to products and services you enjoy and use.
3. Look for Room to Grow: Seek companies with plenty of room to expand their operations.
4. Avoid “Hot” Sectors: Stay away from trendy industries where intense competition will erode returns.
5. Seek Niche-Dominating Companies: Find businesses that dominate their particular market niche.

Lynch’s brilliance was in recognizing that the products and services people value often represent businesses with exceptional customer loyalty and pricing power – key attributes of compounding machines.

4. Charlie Munger: The Power of Mental Models

Charlie Munger, Buffett’s long-time partner at Berkshire Hathaway, expanded quality investing by emphasizing mental models and “elementary worldly wisdom.”

“All I want to know is where I’m going to die, so I’ll never go there,” Munger quipped, illustrating his inverted thinking approach. Rather than seeking winners, Munger first eliminates businesses prone to failure.

Munger’s Quality Investing Framework:

1. Economic Moats: Look for sustainable competitive advantages that protect profits from competitors.
2. High Returns on Invested Capital (ROIC): Seek businesses that can reinvest profits at high rates.
3. Network Effects: Find companies that become more valuable as more people use them.
4. Pricing Power: Identify businesses that can raise prices without losing customers.
5. Low Capital Requirements: Look for companies that don’t need constant reinvestment to maintain their position.

Munger’s multi-disciplinary approach helps identify companies with what he calls “functional inevitability“—businesses so entrenched that their continued success is almost certain. When you own such companies, time becomes your ally rather than your enemy.

5. Benjamin Graham: The Father of Value Investing

Benjamin Graham laid the groundwork for many modern investment strategies. His ideas on fundamental analysis and the margin of safety have shaped how investors view quality and risk.

Graham’s Key Investment Tenets:

1. Margin of Safety: Only invest when there is a clear discount between a company’s market price and its intrinsic value. This buffer protects you if things go wrong.
2. Thorough Analysis: Do deep research and careful analysis of financial statements, looking at earnings, debt, and growth prospects.
3. Investor Psychology: Don’t let emotions drive investment decisions. Instead, use a rational, disciplined approach to picking stocks.

Graham’s methods are a cornerstone of quality investing. They teach us that by carefully analyzing a company’s fundamentals, you can invest with confidence and protect your downside.

6. Philip Fisher: Deep Quality Research

Philip Fisher, author of Common Stocks and Uncommon Profits, pioneered the “scuttlebutt method” of conducting thorough qualitative research to identify exceptional businesses.

“I don’t want a lot of good investments; I want a few outstanding ones,” Fisher declared, emphasizing concentration in truly superior companies.

Fisher’s Quality-Focused Approach:

1. Superior Management: Look for integrity and quality in company leadership.
2. Products Addressing Expanding Markets: Find businesses positioned in growing sectors.
3. Commitment to Research and Development: Seek companies that invest in innovation.
4. Above-Average Profit Margins: Identify businesses that can earn high returns over time.
5. Strong Sales Organizations: Look for companies that excel at marketing and distribution.

Fisher’s methods require deep research beyond financial statements. To truly understand a company’s competitive position, Fisher speaks with customers, suppliers, competitors, and former employees. This thorough approach helps identify hidden qualitative factors that enable decades of compounding.

7. Terry Smith: Simplifying Excellence

Terry Smith, founder of Fundsmith and often referred to as “Britain’s Warren Buffett,” distilled quality investing into a simple framework.

“Buy good companies, don’t pay too much, and do nothing,” Smith advises, capturing the essence of quality investing in a single sentence.

Smith’s Quality Investment Criteria:

1. High Returns on Operating Capital: Find businesses that generate strong returns.
2. Growth Powered by Reinvestment: Seek companies that can fund their own growth from cash flows.
3. Protective Advantages: Look for features that protect returns, such as brands, patents, or dominant market share.
4. Resilience to Technological Disruption: Find businesses unlikely to be obsolete soon.
5. Capable Management: Seek leaders focused on creating shareholder value.
6. Low Debt: Prioritize companies with strong balance sheets.

Smith’s approach emphasizes businesses so exceptional that even average management couldn’t ruin them. These companies generate so much cash they can fund their own growth without diluting shareholders through constant equity raises – creating a virtuous cycle of compounding.

8. The Power of Compounding

The mathematical power behind quality investing becomes clear when we examine compound growth. Consider two investment approaches:

Value Investing: Buy undervalued companies, sell when they reach fair value, and repeat. Assuming 15% annual returns with taxes and transaction costs, your effective compound rate might be 10-12%.

Quality Compounding: Buy exceptional businesses and hold them for decades. Companies that can sustain 15% returns on capital and reinvest most of their earnings might deliver similar 15% annual returns, but without the erosion from taxes and transaction costs.

Over 30 years, a $100,000 investment compounding at:

• 10% becomes approximately $1,744,940
• 15% becomes approximately $6,621,177

This astonishing difference explains why patient quality investors often outperform even skilled traders over long periods. The compounding mathematics work in your favor when you identify and hold truly exceptional businesses.

9. The Pitfalls of Investing

Even with a sound quality investing philosophy, investors often make these critical mistakes:

1. Overpaying for Quality: Remember that even great companies can be poor investments if you pay too much.
2. Confusing Quality with Popularity: Trendy companies aren’t necessarily quality compounders.
3. Impatience During Market Corrections: Quality stocks aren’t immune to downturns.
4. Overtrading: Constant portfolio changes disrupt the compounding process.
5. Inadequate Diversification: Even 15-20 quality companies provide important protection.
6. Neglecting Position Sizing: Allocate more capital to your highest-conviction ideas.
7. Ignoring Warning Signs: Be willing to sell when quality fundamentally deteriorates.

By avoiding these pitfalls, you preserve the integrity of your quality investing approach and maximize long-term compounding.

10. Psychological Insights for Better Investing

A. Overcoming Common Biases

1. Confirmation Bias: When researching investments, we often seek information that confirms our existing beliefs. To combat this, we should intentionally seek diverse opinions and contradictory data.
2. Overconfidence: Many investors believe they know more than they do. Keep an investment journal to track and review your decisions regularly to identify patterns and improve your process.
3. Loss Aversion: People fear losses more than they value equivalent gains. Understanding this can help investors stay the course with quality investments during market downturns.

B. The Psychology of Ownership

Research in behavioral economics reveals that humans experience an “ownership bias”—we value things more simply because we own them.

A 1991 Cornell study showed that people required significantly more money to part with an object they owned than they were willing to pay to acquire the same object.

This psychological quirk typically harms investors, creating a reluctance to sell losing positions.

However, quality investors intentionally harness this bias by developing deep knowledge of their companies, strengthening the feeling of business ownership rather than stock ownership.

Studies show that the more investors understand about the businesses they own, the less they trade in response to market volatility. This reduced activity typically leads to superior long-term returns by minimizing costs and emotional decision-making.

C. The Cognitive Load of Active Trading

Neuroscience research demonstrates that frequent decision-making depletes mental resources through “decision fatigue.” The brain exhausts its glucose supplies making decisions, leading to poorer choices later.

This creates a handicap for active traders who make dozens of buy/sell decisions weekly. Studies show that decision quality deteriorates as trading sessions progress.

Quality investing dramatically reduces cognitive load by eliminating most decision points. The intensive mental work happens upfront when researching potential investments, followed by extended periods with few or no decisions required.

This approach preserves mental bandwidth for the few truly important decisions while avoiding the thousands of minor decisions that statistical analysis shows are more likely to harm than help investment returns.

11. Investing Frameworks

The Quality Investment Checklist:

• Strong financials (consistent earnings growth, healthy balance sheet)
• Competitive advantages (brand power, network effects, economies of scale)
• Excellent management (track record of success, alignment with shareholders)
• Sustainable business model (recurring revenue, pricing power, adaptability)

The 4M Framework:

• Moat: Does the company have a sustainable competitive advantage?
• Management: Is the leadership team capable and aligned with shareholders?
• Meaning: Do you understand the business model and industry dynamics?
• Margin of Safety: Is the stock price below your estimate of intrinsic value?

The CAN-SLIM System:

Developed by William O’Neil, this system combines growth and quality factors:

• Current quarterly earnings (strong)
• Annual earnings growth (consistent)
• New products or management (innovation)
• Supply and demand (strong institutional support)
• Leader in its industry
• Institutional sponsorship (smart money ownership)
• Market direction (align with overall market trend)

12. Pre-Investment Checklist:

• Do I understand the business model?
• Has the company shown consistent earnings growth?
• Does it have a strong competitive advantage?
• Is the management team trustworthy and competent?
• Is the stock price reasonable compared to intrinsic value?

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Main source: Andrew Lokenauth

The post Investing Strategies from the Best Investors first appeared on Finblog.

This move comes as Buffett continues to scale back his U.S. equity exposure. Berkshire sold more than $134 billion worth of stocks in 2024, including trimming its massive positions in Apple ($AAPL) and Bank of America ($BAC). Buffett is sitting on a record cash pile of $334 billion, making investors wonder where the “Oracle of Omaha” will deploy capital next. (More: Warren Buffett Berkshire now hold a record $334 BILLION in cash, What does he know that we don’t?)

A Long-Term Commitment to Japan

In his 2024 annual shareholder letter, Buffett reiterated his commitment to these Japanese investments, confirming Berkshire’s agreement with the trading houses to exceed the previous 10% ceiling on ownership. Buffett first began purchasing stakes in these companies in 2019 and made his positions public in August 2020 on his 90th birthday.

The five trading firms, collectively known as “sogo shosha,” are diversified conglomerates that invest across a wide array of sectors both in Japan and internationally. Buffett himself has compared their business models to Berkshire Hathaway’s own. These companies have attracted Buffett with their strong dividend growth, prudent capital allocation, and shareholder-friendly management practices.

Currency Hedging: A Strategic Move

Part of Buffett’s strategy in Japan includes hedging currency risks. Berkshire has sold Japanese debt and used the proceeds to fund these equity positions, profiting from the spread between the dividends collected from the trading houses and the coupon payments owed on the debt. At the end of 2024, the combined market value of Berkshire’s holdings in these Japanese firms totalled $23.5 billion, compared to their initial aggregate cost of $13.8 billion.

Buffett’s Japan Trip and Future Outlook

In 2023, Buffett visited Japan alongside his designated successor, Greg Abel, meeting with executives from the five trading houses. During that visit, Buffett expressed his desire for Berkshire Hathaway to be long-term partners and shareholders, stating he’d like to own the companies “forever.”

Buffett’s growing focus on Japan underscores his search for value beyond U.S. borders. With U.S. equities appearing overvalued in his view, Buffett has found Japan’s trading houses to offer stable returns and attractive dividends. His disciplined, Graham-inspired value investing approach continues to guide his moves—even after more than seven decades in the investing world.

Conclusion

As Berkshire Hathaway cuts back its U.S. holdings, investors should pay close attention to Buffett’s increasing interest in Japan. His latest moves suggest he sees opportunity abroad, especially in companies like Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo.

With stakes now approaching 10%, and Buffett signaling a willingness to go beyond that, the Oracle of Omaha’s bet on Japan is bigger than ever.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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The post Warren Buffett’s Berkshire Has Been Selling US Stocks. Where It’s Buying Now first appeared on Finblog.

How did they know?

Amid all of the headlines and market noise, Jamie Dimon made a large sale on February 20th. He sold approximately 866,361 shares of $JPM at a price of ~$269.83/share, totaling $234M. These shares were sold through various entities, including family trusts and LLCs.

Jamie Dimon’s purchases and sales of $JPM have been widely watched over the years. They are also generally regarded as a “leading indicator” for the broader market. Since Dimon sold these shares, $JPM has fallen over -13% in a matter of days. It has only been 2 weeks so far.

This brings us back to the “Dimon Bottom” during the pandemic in May 2020. As panic spread, Jamie Dimon joined CNBC on May 20th, 2020 and said $JPM was “very valuable” amid the crash. Within 3 weeks of the bottom, $JPM has traded a whopping +41% higher. This was historic.

Jamie Dimon is not done selling yet. As per the below SEC filing, Jamie Dimon will be selling a total of 1 million shares of $JPM by August 1st. This comes EXACTLY 1 year after his first ever sale of the stock since taking over the company 19 years ago. And, there’s more.

2 days later, Warren Buffett’s Berkshire Hathaway announced they hold a record $334 BILLION in cash. Between Q1 2024 and Q4 2024, their cash balance rose a massive $145.2 BILLION. This is one of the largest cash balances held by a public company ever recorded.

They held $286.5 BILLION of US Treasury Bills. Meanwhile, the US Federal Reserve held $195.3 billion in US Treasury Bills at the time of this announcement. This means that Berkshire Hathaway held ~$91.2 billion MORE of T-bills than the Fed. Once again, unprecedented.

Warren Buffet was asked about why he decided to build such a large cash balance. “Often, nothing looks compelling; very infrequently we find ourselves knee-deep in opportunities,” he said. Buffett was basically saying that *most* stocks appeared to be overvalued.

In fact, Buffet didn’t even buy his own stock. Berkshire Hathaway repurchased $0 of stock in Q4 2024. This is the 2nd straight quarter without buybacks. In Q3, Berkshire said buybacks will resume when Buffett “believes that the repurchase price is below intrinsic value.”

Since the Dimon’s sales and Buffett’s cash balance surging to a record $334 billion, ALL risky assets have dropped. Also, in the week following these announcements, crypto lost a whopping -$700 billion. The market has moved into risk-off mode as the trade war ramps up.

Additionally, in a matter of weeks after these announcements, the Atlanta Fed made multiple downward revisions in GDP estimates. Their GDPNow tool went from +3.9% growth in Q1 2025, to -2.8% contraction, then finally -2.4% last week. Recession odds have surged as well.

So, how did they know? The exact timing of these announcements and the market’s top aligning with them could be a coincidence. However, prior to these sales, we had seen greed levels in risky assets rise to unsustainable levels. Positioning simply became too polarized.

Also, since the recent market correction began, the Fear & Greed Index has fallen sharply. Last week, the index hit its lowest level since the 2022 bear market. The market has become increasingly emotional with sudden shifts in risk appetite. For traders, this is great.

Lastly, it wasn’t just Buffett and Dimon selling stock. Heading into February, the ratio of insider buyers to sellers dropped to 0.22, the lowest since 1988 when data began. Can retail dip buyers hold on here?

Source: TKL

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The post Nasdaq 100 Crashes After Dimon & Buffett Sell-Off: What Did They Know? first appeared on Finblog.