Warren Buffett sold how much?!
This article was sent to me by my colleague Bijou. You may not be super knowledgeable about investing but you’ve likely heard the name Warren Buffett - considered one of the great investors of the last century.
Why this matters to you is that any time he makes a major move the world is watching and analyzing his strategy. When he buys it is a sign of potential value. When he holds, people hold. When he sells, people start to speculate and things happen.
Recently he sold $3.8 Billion, yes, billion with a B, of Bank of America stock. Buffett’s company, Berkshire Hathaway still remained the largest stockholder of BofA but it is a reminder to us all that when major players make moves it does impact us. It is noted that BofA share price is down 15% since he began selling. Does he know something we don’t?
These are other potential ripple effects for when a large move like this is made. Perhaps others sell off more shares believing that the value has peaked further driving the price down. The banking index is down 7%. Is this a sign of larger banking issues? Those that chose to bank at BofA may have shaken confidence in the large retail bank. Or, this could mean very little and the scare mongering is unwarranted. BofA being down may mean it is a value buy. Or, all of this may just be Berkshire balancing out their own portfolio a bit.
We may not know all the ins and the outs of “why?” or what is coming next, but the sale does matter and serves as a reminder. The importance of this for us is that we are educated and pay close attention to different things happening in the market and understand how these can have positive or negative impact on our own investments. It may matter more than we realize. Maybe it’s time to check what amount of BofA you have in your 401(k) as a good learning experience. And see what else you may be invested in.
This is also a reminder that we only control so much. The moves of others have significance for our financial lives.
Here is a link to the original article.
As always, if you come across a financially related article you’d like to send my way please do!
Best place to send them is to me.
More next time!
J