In the latest Form 13F filing, reflecting Warren Buffett’s final quarter as CEO of Berkshire Hathaway before his retirement on December 31, 2025, significant trading activity reveals his strategy as a net seller. Over 13 consecutive quarters leading to his retirement, Buffett sold more shares than he purchased. In the fourth quarter alone, he divested 7.7 million shares of Amazon, over 10.2 million shares of Apple, and approximately 50.8 million shares of Bank of America.
Amidst these sales, Berkshire’s stocks like Apple and Bank of America experienced drastic declines, influenced by high valuations and a corporate tax rate that incentivized divestment. Apple, for instance, saw its price-to-earnings ratio soar to 33, starkly contrasting with Buffett’s initial purchase at a P/E ratio in the low to mid-teens.
Interestingly, Buffett’s last major acquisition was a $352 million purchase of The New York Times Company, acquiring over 5 million shares. This aligns with Buffett’s preference for strong brands and suggests confidence in the company’s growth, particularly in digital subscribers and advertising revenue, despite concerns over its valuation.
Overall, Buffett’s trading patterns indicate a shift in focus toward valuation, possibly signaling caution in a changing market landscape.
Source link
