Buffett Sells At Market Highs

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Warren Buffett just sold 31% of his portfolio. Meanwhile, regular investors like you, you're buying, aren't you? And his company, Berkshire Hathaway, is now sitting on$397 billion in cash, which is literally the biggest cash pile in their entire history. So while the market is hitting all-time highs, the most famous investor in the world is getting out. And Buffett sat down with CNBC just and he said this prices are too high at this point. Just let that sink in. The greatest investor alive just told you on camera that the market's too expensive. So the question is this What does the greatest investor of all time see that you don't? And are you making a massive mistake? So in this video, Rose and I, who is I know almost invisible, I call her a little uh gremlin kitten, we're going to show you exactly why Buffett is selling and give you a simple framework to decide if you should be doing the same. My name is Felix Preen. This is Winston here, it's the brains behind the operation. We help people build wealth by understanding the moves of the world's greatest investors, Wall Street and everybody else. So we're not just gonna rehash some scary headlines. We're going to decode them so you can make smarter decisions with your money. And to help you understand all the information of this video, because it's going to be pretty dense, I've put together a bonus research report. Well, actually, Winston put it together, on all of Berkshire's latest moves, even more details than we can cover in this video. You can download that for free. It's part of our service to make people happy and financially free so they can spend more time with their four-legged friends. You can download that. There's a link down below in the description. But first, we want to get into this. When you hear a headline like Buffett sold 31% of his portfolio, your brain probably pictures him hitting a giant red button and selling a third of everything he owns in a single day. That's not actually what happened. The truth is a little bit more complex and actually a lot more interesting. For the last two years, Berkshire Hathaway has been selling stocks. That means for at least eight quarters in a row, they have sold more stocks than they've bought. It's not one big panic sell. It is a slow and deliberate retreat from the market. So what are they selling? Well, let's look at the big one.

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Apple.

Apple And Banks Get Trimmed

Live Training On When To Sell

Three Reasons Buffett Is Selling

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For years, Apple was Buffett's favorite stock. He called it the best business he knew in the world, but in the last two years, he sold off about 75% of his massive Apple stake. Now, you might think you don't really care because you don't own any Apple stock. Well, let me tell you, you do. Because your 401k, any retirement funds you have, pretty much every single ETF in the world owns a chunk of Apple. He's also sold billions of Bank of America stock, and exit at some other positions, trimp many more, including his SP 500 index fund investments, which he's always talking about. Now, before we get into why he's selling, you might be thinking, should I sell? And you know what? Having reviewed thousands of investors' portfolio, because we've taught about 25,000 people so far over the last six years, the biggest mistake I see people make is not to sell. They have beautiful shares that go up a lot, and then they don't sell them, and then they go down a lot. And they might never go up again. So I'm going to do something for you which I've not done all year. We may never do again. And it is run a live training on when to sell, when to take profits, and when to dump losers. Because this is not something you should be making up on the on the fly. This is something that Wall Street has mastered and has come up with rules with. These rules have been around for like half a century, but of course they don't get taught to you. They only get taught to people who work in banking. So if you want to learn that, click on the link down below, when to sell.org, and grab yourself a free seat for the live training this weekend. If you're in the United States, if you're in North America, you're in South America, or in Europe, you can watch this. It'll be at a time that works for you because I'll be in London on the weekend. And therefore, it should be accessible to everybody pretty much on the planet. Um, maybe not to the Australians, sorry, like that. Uh, and if you join us there, I promise you, you're going to have a better year ahead. It is just impossible not to once you actually get out of things when you should. But let's look at why Buffett is actually selling, because this is gonna help you make better decisions. Because everyone's buying, right? Everyone's looking for the latest thing. This guy is just like, I'm out. Well, there are three reasons. And first, and this is the big one, he says the market is overheated. So think of the stock market like a giant supermarket. Every stock has a price tag, like a valuation, based on how much money the company makes and what it's trading at. And right now, Warren Buffett is walking through the supermarket and he's thinking, oh, the price tags are way too high. Here's what Buffett said himself. He said, the markets are a church with a casino attached. The casino has gotten very attractive to people.

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No.

Your Small Investor Advantage

The Three Cs Selling Framework

Prepare Now Without Panic

Share The Link And Final Takeaways

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A church with a casino attached, and right now most retail investors are at the slot machines. So one of his favorite ways to check if the whole market is expensive is a metric they now call the Buffett indicator. Compares the value of the stock market to the size of the US economy. And you would think the US economy would be bigger than the stock market, right? Buffett once said this indicator, when it gets near 200%, it's like playing with fire. Well, right now, the buffet indicator, as the Canadians say, is at over 230%. So you're not just playing with fire, you're standing in the middle of a wildfire, going, I've got a garden hose, I'll be all right. So it tells them that stocks in general are historically expensive. And the second reason is there's a new captain steering the ship. Warren Buffett, after a legendary career of 60 years of compounding, passed the CEO title to a Czech called Greg Abel. And Abel plans to stick to Buffett's philosophy, but he of course has his own strategy and he's shaking things up, he's unwinding some older investments. So part of the selling we're seeing is likely the new CEO cleaning house, preparing the company for the future. And that brings us to reason number thresh. They're preparing for the next elephant. Warren Buffett has famously said, be fearful when others are greedy, and greedy when others are fearful. So he loves to go shopping when the market is crashing, when there is blood in the streets. And it's a quote. He calls the giant companies he wants to buy elephants. And what you need to hunt elephants, an elephant gun. Now, hunting elephants is evil. The only person I heard about doing that was the Spanish king, the previous Spanish king. He had to resign when people found out that was one of his hobbies, which is very, very good. You shouldn't hunt elephants, they're lovely beings. But coming back to the interview Buffett just gave, you put it like this. In 60 years of business, only about five years have been really juicy. So the best opportunities come when nobody else will answer their phones. Only five years out of 60, that's how rare true buying opportunity is. And he's saving the ammo, which is why he's got 400 billion in cash. That's his elephant gun. Fully loaded like the last king of Spain. So he's selling his stocks at what he sees as a market peak to build up cash. So when the next crash happens, you'll be ready to swoop in and buy great companies at bargain prices. Now, let me tell you why you have an advantage over Warren the Buffett. And you might think, no, no, no, no, no, I can't have an advantage over the guy. It's very simple. The problem when you have$400 billion is that you want to buy stuff that's say 10% of that, right? So the smallest buy he can make is about$40 billion to have any meaningful impact. Otherwise, it's just activity. Now, what's the problem with that? Well, most companies are about that size,$40 billion in value. So you buy the whole company, you take it private, you own the whole thing. Not really what you want, because he doesn't want to manage these companies. He wants to buy like an Apple share. And he said famously about Tim Cook. I gave Tim Cook$35 billion. He worked very hard, turned it into$130 billion, and I did nothing at all. That's the business model. So it is very hard to find companies that are very large. Because he has to find companies that are worth hundreds of billions of dollars, and it means there isn't a lot for him to buy, quite frankly. So Buffett is essentially limited to probably somewhere between 20 to 50 companies in the world. You, my friend, have thousands of opportunities you can buy every week. For example, we did a video earlier in the week about quantum stocks, called that rally about a year before. Some of those stocks went up a thousand percent. Now, those stocks are tiny. They're worth a couple of billion. Buffett is excluded from the opportunity entirely until those companies grow to, you know, at least 100 billion in value. So you actually have it easier in many ways than the great Warren Buffett. It's one of the problems of big funds, honestly. They just it begets harder and harder to maintain the success level because you get a smaller and smaller number of opportunities out there. If that makes some sense to you, uh let me know down below by writing sense in the chat. I just want to make sure that's landing for you. So we've covered the why he's selling. So let me give you a Warren Buffett style when to sell framework. And I call it Warren Buffett style because your framework should be different because you're not managing billions of dollars. So you can't just copy his moves. So you should learn this principles and the systems that work for smaller portfolios too. And I'll teach those to you on the weekend live. You can ask me questions about it, it'll be a proper teaching session. Um, go to feelixfrennce.org slash actually no, go to wintercell.org, that's what the link is. So his framework is essentially this. There are three Cs. The first C is a change in the company. The business has changed for the worse. That could be a new competitor, that could be management making bad decisions like pointless acquisitions to look busy, or just an industry that is slowly but surely starting to decline. So bank stocks. So he's not saying bank stocks are gonna fall, but his selling of bank stocks he's seeing a fundamental change in the long-term prospects for banking. So he's selling. The second is the so when the stock is no longer a bargain, in fact, it's now wildly overpriced compared to its actual value. And that's what happened with Apple. When Buffett first started buying Apple, it was trading at about a 10 to 15 times PE. Now I'm not a huge fan of PE multiples, but it is a measure, right? But recently, that price has been more like 30 times. So it's got two to three times more expensive. So he took profits. He sold the great company at a great price tag. And then the third C in the Buffett model is a change in cash needs. And this is what happens when you find a better opportunity and you need cash to buy it. So the principle is very simple. Buffett doesn't sell a good company just to have cash sitting around. He sells because he believes he can use that cash to get an even better return somewhere else. Maybe not right away, but in the near future. So he's trading a good opportunity for what he believes will be a fantastic opportunity, which makes me think he thinks we're gonna get some nice bit of a nasty correction at some point, right? So what you should you do now? Buffett is selling, market looks expensive. We have our three C framework, the Buffett framework. So what you should you do as an individual investor right now? First, and this is the most important rule: don't panic, sell, right? Sitting in cash is a luxury that Buffett has to do. Now he's of course also not sitting in cash, he's sitting in T-builds, which are still paying him probably 5%. And because his positions are so large, he can't just sell them like that. He has to do it gradually. So, what's actually your biggest advantage is your small size. You can move much quicker when you need to. So you should be preparing right now. So with your portfolio, look at the three C's, look at each stock you own. Ask yourself, honestly, has the company changed? Has the cost become too high? And do you have a better use for this cash? And if you're ruttering around and you're not quite sure about it, and maybe put your confidence level in the chat, zero, like no idea, 10 100% confident, then let me know that in the comments down below, that number, and join us on the weekend. And I will teach you in much, much, much more granular detail specifically how you can make your own sales rules, depending on whether you're an investor or a trader. Both have rules, they're quite similar, but a little bit different. But Buffett here is telling you the next crash won't send you an invitation in advance. It'll come out of nowhere, like they always do. And cash on the sidelines or cash in something that is liquid and isn't going to hit get hit that hard gives you some firepower to buy great companies when they go on sale. And then focus on what you can control. We don't try to time the market perfectly. Nobody can do that. But we can buy good companies at reasonable prices, can follow the money into the sectors and the industries that are going up right now, because something is always going up, right? Even in a crash, something is always going up because you didn't know where it is, and use this glorious market because it is a glorious market, even if it doesn't always feel like that, because it's bumpy, right? We're at near all-time highs, which tells you you want to be preparing for that 20%, 30% sell-off. And you want to be in a position where you see that as an opportunity rather than something that scares the Jesus out of you. And the way we do that is by having really, really good rules on when we sell, when we take profits, when we take small losses, exactly how we do that. And as I say again, join me for that on the weekend uh when to sell.org. Because if you wait for the crash and then you want to know what to do, well, you're gonna lose sleep, you're gonna miss opportunities, you're gonna feel like crap, and we can prevent that. So it is not the sexiest topic in the world. I get that. But the smart people understand that when I say to you, this is the lowest hanging fruit you have, this is the easiest skill to acquire, and it's the one thing you can do to make an enormous impact on your wealth building over the next couple of months and the next years and even the next decades, because the system and the rules will always be the same. Come and learn it with us. If you get some value out of this, you have some friends who might benefit from having some rules on when to heck to sell. Maybe they bought something that went up a lot and then it's come crashing down again, which is really annoying. Send the link went to sell.org, and I wish you a safe and glorious investing year ahead, and look forward to seeing many of you live on the weekend. Be live from London. Thanks for watching, all the best.