Warren Buffett, the legendary investor, has missed out on a whopping $40 billion in potential gains by selling off some of Berkshire Hathaway’s biggest investments early in the year.
Selling Early, Missing Out
Buffett’s decision to reduce Berkshire’s holdings by a massive $127 billion in 2024 has raised eyebrows. He sold off nearly $100 billion worth of Apple shares and $10 billion of Bank of America stock. These early sales alone have cost Berkshire about $20 billion in potential profits.
Buffett’s decision to exit the US banking sector, including selling off shares in JPMorgan Chase, Wells Fargo, and Goldman Sachs, has also cost Berkshire another $20 billion in potential gains.
Cash on the Sidelines
Despite these missed opportunities, Buffett has amassed a record $311 billion in cash, ready to invest if the market conditions become favorable.
Berkshire’s Performance and Trump’s Impact
Over the past five years, Berkshire Hathaway’s returns have been roughly in line with the S&P 500. The company’s stock is up 27% this year. Analysts believe that the Trump administration’s policies could benefit Berkshire, particularly its non-insurance subsidiaries.
Buffett’s Legacy
While Buffett’s succession plan may not significantly impact Berkshire’s operations, it could affect how investors perceive the company. Buffett’s legacy as a successful investor and business leader remains strong.
