Berksshire Hathaway (mustache) sold all its positions in both SPDR S & P 500 ETF TRUST (SPY) and Vanguard S & P 500 ETF (VOO) During the fourth quarter of 2024, according to the Securities Commission sawdust Posted last week because the investment giant continues its longest -running series for years.
The decision to fully come out with the leading funds that trade on the stock market, not to maintain smaller positions, Berksshire accumulates its biggest reserve for cash, suggesting that Warren Buffett sees limited opportunities in the current market environment, despite the strong performance of the S & P 500.
The conglomerate sold its entire share of 39,400 shares in SPY in the value of $ 22.6 million and $ 43,000 VOO -Aua worth of $ 22.68 million, according to the 13F application. The sale happened during a quarter when the S&P 500 received 2.4% and finished 2024 with a return of 25%.
“Although we do not have an insight into their accurate explanation, this could indicate concern about market estimates, increased volatility or even shifts according to the individual selects of the shares over the wide exposure of the index,” according to Daniel Milks, founder of the fiduciary organization and Woodmark advisor.
Relatively small positions were only a fraction of Berksshire’s huge portfolio, but the time of complete exit from both fund attracted the attention of analysts.
“Large investment companies often” clean “their portfolios, exiting smaller positions that do not affect significant performance,” she told Etf.com Melissa Caro, the founder of my retirement network.
The sale is aligned with the wider Berksshire strategy of reducing the exposure to the capital, because the company is a net seller of shares in nine consecutive quarters, according to SEC. Since these fillings are reflected only to last year’s fourth quarter, each potential new Berksshire moves made in 2025, will not be known to future publications.
“What is significant is that Berkshire has sold significant roles in some companies that make up much of these ETF and wider indices that they follow. There should be real attention there,” Caro said. “Spy sales and VOO does not necessarily mean a bear market prospect, but pruning the main individual proportions could signal something about Berksshire’s view of certain stocks or sectors.”
Caro noted that Buffett usually recommends index funds for individual investors, next to a different strategy for Berkshire, reflecting different advantages and resources available to an institutional investor.
