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BRK-A
Business Insider
4 mins

Warren Buffett may be cashing in stocks ahead of a storm, and could buy them back after it hits, top strategist says

1. Buffett sells stocks, anticipating a market downturn. 2. Berkshire Hathaway's stock sales totaled $212 billion, surpassing purchases by $177 billion. 3. Cash reserves at Berkshire have tripled to a record $344 billion. 4. Buffett’s cautious outlook echoes his past behavior before financial crises. 5. Buffett may repurchase stocks at lower prices after the anticipated slump.

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FAQ

Why Bearish?

Buffett's stock sells and caution suggest lower future stock prices. Historical sell-offs precede downturns, affecting BRK-A negatively.

How important is it?

Buffett’s actions profoundly affect market sentiment around BRK-A, especially with his reputation.

Why Short Term?

Market reactions to Buffett's moves typically manifest immediately or in a few months. Analogous historical trends show quick reactions post-selling.

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