Posted on

Buffett throws bank stocks out of portfolio

While star investor Warren Buffett was still campaigning for confidence in the US banking system during the financial crisis, he is now bidding farewell to a significant proportion of stocks from the banking sector, according to the latest mandatory announcement from Berkshire Hathaway. A big wave of credit defaults is to expect.

Warren Buffett sold bank stocks

Five big stocks that have been sold:

  • Southwest Airlines
  • Bank of New York Mellon
  • Delta Airlines
  • US Bancorp
  • Goldmann Sachs

Berkshire Hathaway has almost completely withdrawn from Goldman Sachs. According to a notification of the US Securities and Exchange Commission, the investment vehicle controlled by Warren Buffett reduced its stake in the US bank by more than 10 million shares to 1.9 million in the first quarter.

At the annual meeting of his investment conglomerate Berkshire Hathaway, Warren Buffett had recently announced that he would be selling all his shares in the aviation industry. Referring to Berkshire Hathaway’s recent mandatory announcement, Warren Buffett and his partner Charlie Munger have suffered record losses on equity positions held in the first quarter.

These losses amounted to $66.5 billion, down from $242 billion at the end of the fourth quarter of 2019 to $175.5 billion at the end of the first quarter of 2020. But what is even more interesting is that Buffett now seems to have started throwing bank stocks out of his portfolio. It is clear that, regarding the private mortgage markets as well as an increasing wave of loan defaults, the worst is yet to come.

In addition it is very likely a good idea to be short selling bank stocks, as it has been a great source of income lately and will probably still be in the near future. Currently there is no reason for it to change, as a V-shaped recovery of the American economy is very, very unlikely

At the time of the global financial crisis, Buffett once helped Goldman Sachs to bail out, as Berkshire Hathaway had invested five billion US dollars in Goldman Sachs. In return, Buffett received preferred shares, which were endowed with an annual dividend of ten percent.

Only a while ago he cheered for the banks, now he is throwing out his bank stocks very quietly. It now has become clear, that the recovery of the economy will not take place anytime soon and the banks will be stuck in the holes they dug themselves. The recession has become inevitable.

5 Replies to “Buffett throws bank stocks out of portfolio”

  1. Good – I should definitely pronounce, impressed with your website.
    I had no trouble navigating through all the tabs as well as related information ended up being truly simple to do to access.

    I recently found what I hoped for before you know it in the least.
    Reasonably unusual. Is likely to appreciate it
    for those who add forums or something, site theme . a tones
    way for your customer to communicate. Nice task.

    my blog: Go on

  2. I leave a leave a response whenever I like a post on a site or I have something to contribute to the discussion. Usually it’s triggered by the sincerness communicated
    in the article I browsed. And after this post Buffett throws
    bank stocks out of portfolio | blues.cf | economy news.
    I was actually moved enough to drop a comment :
    -P I do have a couple of questions for you if it’s okay.

    Could it be just me or do a few of these responses come across as if they are coming from
    brain dead folks? 😛 And, if you are writing on additional online sites,
    I would like to keep up with you. Could you make a list the complete urls of your community sites like your Facebook page, twitter feed, or linkedin profile?

    Also visit my homepage: https://purespectracbd.com/

  3. Thank you for your site post. Jones and I have been saving for just a new e book on this theme and your post has made us to save all of our money.
    Your thoughts really answered all our concerns.
    In fact, greater than what we had thought of just before we came upon your amazing blog.
    I actually no longer nurture doubts and a troubled mind because you have truly attended to our needs right here.
    Thanks

    Also visit my website – Green Healing CBD Tincture

Leave a Reply

Your email address will not be published.