Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Bill Gates sold a significant portion of his portfolio last quarter, which could be seen as another bearish signal for the stock market and a move that reflects Warren Buffett’s recent decisions. Gates has cut his position on two of his largest holdings by an estimated $1.7 billion: Berkshire Hathaway (NYSE: BRK-B) and Microsoft (NASDAQ:MSFT).
According to the latest 13F filing, Gates sold 2,613,252 shares of Berkshire Hathaway. It is not clear at what price the shares were sold, but based on the average price of $393.34 per share during the quarter, total sales are estimated at more than $1 billion. Additionally, he reduced his stake in Microsoft by 1,711,272 shares, which traded at an average price of $404.82 for an estimated total of nearly $700 million. The combined value of these sales is estimated at approximately $1.72 billion.
The downsizing of Gates’ portfolio mirrors a similar move by Warren Buffett in the same quarter, who has stockpiled money at Berkshire Hathaway. Berkshire’s cash reserves reached a record high of $189 billion in the first quarter, while Buffett predicts they will likely reach $200 billion by the end of the current quarter. Buffett’s decision to reduce Berkshire’s stake in Apple and increase the company’s cash position is seen as a bearish signal for the stock market, indicating that the investor does not see many attractive opportunities in the current economic climate.
In addition to reducing the size of his stock portfolio by more than four million shares, Gates is reportedly selling two superyachts – the Wayfinder and Project 821. The latter, a 390-foot vessel under construction by Feadship, is for sale for 600 million euros ( $642 million), while the Wayfinder, a 70-meter catamaran, is also on the market. The reasons behind these sales are not explicitly stated, but speculation suggests that Gates is simply living up to his commitment to the environment and reducing his impact on the environment. It is also possible that the sale of these yachts is a financial move aimed at increasing his money supply.
Is it time to stay out of the market for a while?
Bill Gates and Warren Buffett’s parallel moves to increase their cash holdings indicate a bearish view of the stock market in the near future. While no one should make investment decisions based solely on the actions of Gates and Buffett, they are still worth considering.
While it probably doesn’t make sense to sell existing interests, staying on the sidelines for the time being regarding new investments may be a reasonable choice. However, unused cash will certainly lose value as inflation remains high. One approach is to consider a short-term cash management tool that offers high returns and principal protection. This allows you to continue earning income from your money while you wait for better market opportunities.
Basecamp Alpine Notes from EquityMultiple are one of the most attractive high-yield opportunities available today, largely due to the company’s stellar track record of on-time payments.
Alpine Notes are a powerful short-term cash management tool that also offers the security of institutional-quality real estate. They have a target APY of 9.00% over 3 months and a low minimum investment of $1,000.
The interest is accrued and compounded monthly, increasing the effective return on an annual basis. Notes can be automatically transferred to the next series of notes at maturity to further compound returns, or you can cash out your capital and put it to work elsewhere.
EquityMultiple has issued 61 Alpine Note series to more than 1,500 investors and has met all payment and financing obligations with no missed or late interest payments.
Click here to learn more about what makes Basecamp Alpine Notes an attractive investment with high returns.
Read next:
This article Bill Gates has liquidated $1.7 billion from his portfolio, mirroring Buffett’s move to stockpiling cash originally appeared on Benzinga.com
