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Bill Gates liquidated $1.7 billion from his portfolio, mirroring Buffett’s decision to hoard cash
Bill Gates liquidated $1.7 billion from his portfolio, mirroring Buffett’s decision to hoard cash
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Bill Gates sold a considerable part of his portfolio in the last quarter, which can be seen as another bearish sign for the stock market and a move that reflects Warren Buffett’s recent decisions. Gates reduced his position by about $1.7 billion in two of his biggest holdings – Berkshire Hathaway (NYSE: BRK-B) It is Microsoft (NASDAQ:MSFT).
According to the latest 13F filing, Gates sold 2,613,252 shares of Berkshire Hathaway. It’s unclear at what price the shares were sold, but based on the average price of $393.34 per share during the quarter, the total sale is estimated to be worth more than $1 billion. Additionally, he reduced his holdings in Microsoft by 1,711,272 shares, which traded at an average price of $404.82 for an estimated total of nearly $700 million. The combined value of these sales is estimated at around $1.72 billion.
The reduction in Gates’ portfolio reflects a similar movement made by Warren Buffett during the same quarter, who has been accumulating money at Berkshire Hathaway. Berkshire’s cash reserves reached a record high of $189 billion during the first quarter, with Buffett predicting they will likely reach $200 billion by the end of the current quarter. Buffett’s decision to reduce Berkshire’s stake in Apple and increase the company’s cash position was seen as a bearish sign for the stock market, indicating that investors do not see many attractive opportunities in the current economic climate.
In addition to reducing the size of his stock portfolio by more than four million shares, Gates is reportedly selling two superyachts – the Wayfinder and Project 821. The latter, a 390-foot vessel under construction at Feadship, is for sale for 600 million euros ($642 million), while the Wayfinder, a 224-foot catamaran, is also on the market . The reasons behind these sales are not explicitly stated, but speculation suggests that Gates may simply be honoring his commitment to environmental causes and reducing his environmental impact. It is also possible that the sale of these yachts is a financial measure designed to increase your cash flow.
Is it time to stay out of the market for a while?
The parallel moves by Bill Gates and Warren Buffett to increase their cash positions suggest a pessimistic outlook on the stock market in the near future. While no one should make investment decisions based solely on Gates and Buffett’s actions, they are still worth considering.
While it probably doesn’t make sense to sell any current holdings, staying on the sidelines for now in terms of new investments may be a reasonable choice. However, idle money will certainly lose value as inflation remains high. One approach is to consider a short-term cash management tool that provides high yield and principal protection. This will allow you to continue making a profit on your money while you wait for better market opportunities.
The story continues
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This article Bill Gates liquidated $1.7 billion from his portfolio, mirroring Buffett’s decision to hoard cash originally appeared in Benzinga.com