Buffett Continues To Sell Stocks In 2020 & The Factors Behind It Are Alarming

Let's talk all the stocks that Warren Buffett has been selling in 2020 & the underlying reasons why he is selling...

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As you guys all know, I like to keep a keen eye on what Warren Buffett is doing in the stock market. And I’ve been doing this for quite some time now. If we look at the past 11 years, he’s been doing 1 thing. Buying stocks. The likes of Apple, Bank of America, General Motors, Southwest airlines, etc… that is until 2020 comes along.

2020, he’s actually been doing completely the opposite. Most of his stock moves have been sales. And we’ve seen this recently as well, when he released his 13f filings for the recent quarter. Here he made 22 stock move, 17 of those moves were the selling of stock…

In this video I want to go over first, the stocks that he did decided to sell. And secondly I want to go over the reasons why Buffett is predominantly selling instead of buying…

So the first major group of stocks that he’s been selling is his bank and financial stocks. Here’s the list of the ones he’s sold…

Wells Fargo he’s got rid of 85.6 million shares reducing his position by 26.5%.
JP Morgan, he sold 35.5 million shares reducing his position by 61.5%.
Pnc financial he’s reduced by 41.8%, Bank of New York Mellon he’s sold 9.3% of that position. US Bancorp he’s reduced by .4%. M&T Bank Corp he’s reduced by 15.7% and Goldman sachs guess what he’s done with that, he’s sold out of his entire position. That’s 7 banking and financial stocks been either sold by a certain percentage or completely sold out!

The next group you probably already know by now, Delta, Southwest, United and American Airlines, he has completely sold out of all those positions. Doesn’t have a single stock left in them…

Ok, another stock his company Berkshire Hathaway has completely sold out of is Restaurant Brands International. The fast food holding company. He also sold out of his entire occidental petroleum stock. To be honest that was a bit of a surprise for me, I thought he’d be enjoying oil stocks during this time while it’s cheap, but no…

Another position reduced was charter communications, he sold 3.9% of that stock. Also the majority of Sirius XM stock was sold, but he bought liberty Sirius XM group so that kind of cancels out one another… And Mastercard and visa were the last stocks that were sold this quarter. Reduced by 7.5 and 5.4% respectively.

So that’s all the stocks that he sold. 17 of them in total. I don’t know if Buffett has even been on a selling spree this big.

Now the interesting thing is if you look at the stocks that he bought, most of them were defensive plays. So overall he bought 5 stocks this quarter.

The first and only new position that Buffett bought was a gold mining company by the name Barrick Gold Corporation. Buffett bought 20.9 million shares in this company worth about $564 million dollars.

Now the interesting thing that all his followers out there will know. Is that Buffett has not bought gold ever his life. In fact he said back in 1998 that “(Gold) gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”.

So he never liked gold, that is up until now, where he decides to buy millions of dollars of it. Why, because it’s a defensive play, it’s known as safety measure, and it’s known as a portfolio hedge in case of a crash…

But this wasn’t the only defensive move Buffett made. He also added $4.2 million shares to his Suncor energy position… Now why’s this interesting? Well again, it’s those who know the market well who are surprised by this. Because energy stocks and precious metal are known to do the best during the very late stages of the market cycle. Often right before a market crash. So the fact that he’s gone and bought first of all gold and energy, it’s mmm something to mull over. Let’s just say that...

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DISCLAIMER: It's important to note that I am not a financial adviser and you should do your own research when picking stocks to invest in. These are just some of my viewpoints, by no means would I recommend watching one YouTube video and then immediately buying that stock. This video was made for educational and entertainment purposes only. Consult your financial adviser.