Legendary Investor Warren Buffett Selling $8 Billion Stocks Raises U.S. Markets Concerns of Recession

Legendary investor Warren Buffett sold a net of $8 billion in stocks for Berkshire Hathaway. This move raised concerns in the U.S. markets of a looming recession when an investor like Buffett bolsters his company’s cash reserves.

Legendary investor Warren Buffett, who was known for his statement that the best time to hold a stock is “forever”, reportedly sold $13 billion in stocks while buying less than $5 billion in the second quarter of 2023. The earnings report revealed that the amounts totaled a net sale of $8 billion in stocks for Berkshire Hathaway, the legendary investor Warren Buffett’s investment firm.

According to Allcot, prior to the $8 billion in net sales, the legendary investor Warren Buffett also sold $13.3 billion in stocks for his company in the first quarter of 2023. Since both sales took place between January and July, the ordinary investors in the U.S. stock markets are already feeling the effects of the dip in stock prices.

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Legendary Investor Warren Buffett’s Move Raised Concerns

An article in Mint states that although a recession will not materialize yet in 2023, some economists and finance experts believe that it is still looming. Reports say last June, the chief economist of Moody’s Analytics, Mark Zandi, stated that the chances of a recession this year have dropped to around 33%.

Unfortunately, the possibility of a recession will increase to 50% in 2024. Due to this, finance expert Robert Kiyosaki believes that it is possible that the legendary investor Warren Buffett is bolstering his company’s cash reserves to buy stocks once the recession happens.

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