Buffett Just Sold 2 ETFs. Should You Follow His Lead?
Warren Buffett is the CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) and one of the most closely watched investors on Wall Street. Changes to Berkshire Hathaway's investment portfolio are scrutinized heavily, with investors attempting to glean some guidance from his actions. One fourth-quarter 2024 move that garnered a lot of attention was the company's decision to sell out of two exchange-traded funds (ETFs).At the end of the third quarter of 2024, Buffett owned around $22.7 million worth of the Vanguard S&P 500 ETF (NYSEMKT: VOO) and $22.6 million worth of the SPDR S&P 500 Index Trust ETF (NYSEMKT: SPY). Both exchange-traded funds do the same exact thing: track the performance of the S&P 500 index (SNPINDEX: ^GSPC).Totaling up to a little over $45 million, these two positions are huge (individually and combined) compared to what most investors have saved in their nest eggs. But Berkshire Hathaway isn't most investors. It's a gigantic conglomerate with a $1 trillion market cap. The truth is that $45 million isn't even a rounding error for Berkshire Hathaway, with each of these positions accounting for less than 0.01% of the company's common stock portfolio.Continue reading
Warren Buffett is the CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) and one of the most closely watched investors on Wall Street. Changes to Berkshire Hathaway's investment portfolio are scrutinized heavily, with investors attempting to glean some guidance from his actions. One fourth-quarter 2024 move that garnered a lot of attention was the company's decision to sell out of two exchange-traded funds (ETFs).
At the end of the third quarter of 2024, Buffett owned around $22.7 million worth of the Vanguard S&P 500 ETF (NYSEMKT: VOO) and $22.6 million worth of the SPDR S&P 500 Index Trust ETF (NYSEMKT: SPY). Both exchange-traded funds do the same exact thing: track the performance of the S&P 500 index (SNPINDEX: ^GSPC).
Totaling up to a little over $45 million, these two positions are huge (individually and combined) compared to what most investors have saved in their nest eggs. But Berkshire Hathaway isn't most investors. It's a gigantic conglomerate with a $1 trillion market cap. The truth is that $45 million isn't even a rounding error for Berkshire Hathaway, with each of these positions accounting for less than 0.01% of the company's common stock portfolio.
