In the latest flashpoint of a high-flying US equity market making traders more wary of valuations, Buffet’s investment conglomerate Berkshire Hathaway said on Monday that the company had sold off a large chunk of its stakes in Chevron and Wells Fargo & Co, however, had purchased a $943 million worth of stake in the UK-based insurer Aon Plc.
A regulatory filing with US SEC (Securities and Exchange Commission) dated back to March 31 had detailed the latest proceedings of Buffet’s US-listed holdings. Aside from a divestiture of stakes in Wells Fargo & Co and Chevron, Berkshire had entirely shrugged off two other smaller holdings such as private label credit card issuer Synchrony Financial Inc and Canada’s Suncor Energy Plc, spurring speculations that Buffet alongside his investment manager Todd Combs and Ted Weschler, might be sensing a swathe of assumptive bets and irrational trades which had lifted the Wall St.
to several record highs over recent months.
Berkshire Hathaway sells off stakes in Wells Fargo and Chevron, purchases AON
Apart from that, according to Berkshire’s regulatory filing dated back to March 31, Warren Buffet’s flagship investment enterprise that wrapped up March with a near-record $145.4 billion worth of assets, had sold off $6.45 billion worth of equities over fiscal first quarter of 2021, while the investment conglomerate holding had purchased only $2.57 billion worth of assets in the latest quarter.
Nonetheless, beaconing another crow's nest, a principal at Seabreeze Partners Management LLC in Palm Beach, Florida, Doug Kass said following the announcement, “He (Buffet) is clearly in no rush and is sitting on his hands, awaiting the right pitch,” adding Berkshire was “likely shoring up reserves” for a major acquisition.