Warren Buffett Sold 2 S&P 500 Index Funds Mere Months Before the Correction, but He Doesn't Have a Crystal Ball
Had you invested $1,000 in the Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) holding company when Warren Buffett took the helm as CEO in 1965, you would have been sitting on a whopping $44.7 million at the end of 2024. The same investment in the S&P 500 (SNPINDEX: ^GSPC) index would have grown to just $342,906 over the same period. Berkshire currently holds $277 billion worth of publicly traded stocks and securities, but that portfolio is much smaller than it was at this time last year, following a selling spree by Buffett and his team. They even sold the conglomerate's only two S&P 500 index funds -- the Vanguard S&P 500 ETF and the SPDR S&P 500 ETF Trust -- during the final three months of 2024.Berkshire only owned $46 million worth of those index funds in total. Nevertheless, it sold them just months before the S&P 500 entered correction territory last week. But Buffett doesn't have a crystal ball; he's simply following his time-tested strategy which has worked so well for Berkshire over the last 59 years, so here's why investors shouldn't panic over his recent moves.Continue reading
Had you invested $1,000 in the Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) holding company when Warren Buffett took the helm as CEO in 1965, you would have been sitting on a whopping $44.7 million at the end of 2024. The same investment in the S&P 500 (SNPINDEX: ^GSPC) index would have grown to just $342,906 over the same period.
Berkshire currently holds $277 billion worth of publicly traded stocks and securities, but that portfolio is much smaller than it was at this time last year, following a selling spree by Buffett and his team. They even sold the conglomerate's only two S&P 500 index funds -- the Vanguard S&P 500 ETF and the SPDR S&P 500 ETF Trust -- during the final three months of 2024.
Berkshire only owned $46 million worth of those index funds in total. Nevertheless, it sold them just months before the S&P 500 entered correction territory last week. But Buffett doesn't have a crystal ball; he's simply following his time-tested strategy which has worked so well for Berkshire over the last 59 years, so here's why investors shouldn't panic over his recent moves.
