3 Big Investor Takeaways From Warren Buffett's Latest Moves

Whenever Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) reports on its holdings, investors are often eager to learn what stocks it bought and sold. The company, which Warren Buffett leads, gives insights into the stocks the billionaire investor is bullish and bearish on. And it's not surprising if a stock he buys gets a bump in value on the news, and the reverse happens for one that he sold.

The past year has been a fairly quiet one for Berkshire; there haven't been many big stock purchases. However, here are three things that stand out to me from Buffett's recent moves.

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1. Buffett has been selling bank stocks

One of the more notable moves Buffett has made recently has been trimming his position in bank stocks. Earlier this year, investors learned that Berkshire Hathaway had reduced its position in Bank of America, Citigroup, Capital One, and Nu Holdings.

Bank and other financial stocks have typically been staples of the Berkshire portfolio, which is why these moves stand out, especially since these were also the biggest stock sales the company made during the last quarter of 2024.

You might think this could be a sign that Buffett is worried about the economy, but he says he does not make investing decisions based on economic forecasts. And bank stocks are still prominent in his portfolio, with Bank of America remaining Berkshire's fourth-largest holding, accounting for around 10%. The reason behind these stocks sales isn't evident, but they were significant.

2. He continues to load up on consumer goods stocks

Another big Buffett theme has been continuing to focus on consumer goods. Constellation Brands and Domino's Pizza are particular noteworthy additions to Berkshire's portfolio within the past year, two businesses that center around well-known consumer brands.

That fits the mold of other big consumer names in Berkshire's portfolio, including Apple, Coca-Cola, and Kraft Heinz, which are among its top 10 holdings. Strong brands benefit from a competitive moat, which Buffett also focuses on when looking for a good long-term buy.

3. He has been fairly cautious overall

Buffett has been doing a lot more selling than buying in recent quarters, which has resulted in Berkshire's cash position reaching record levels. His position in Apple is down drastically over the past 12 months, which is also why Berkshire's portfolio looks more diverse now as the iPhone maker no longer represents around half of the holdings. Instead, it's down to around 23%.

Meanwhile, Constellation and Domino's each account for just 0.4% of the Berkshire portfolio. And so, while those moves may have been notable because they were additions to it, Berkshire investors likely aren't going to be overly concerned with how those businesses perform.

For the most part, Buffett has remained cautious, but I suspect that has to do with high valuations in the market and a lack of compelling buying opportunities, and that could change due to the recent crash.

What should investors do?

There's a lot that can be learned from Buffett, but investors should remember that he has different objectives when buying stocks and different expertise than you might. The stocks he buys may not be the best ones for your investing strategy, and the ones he sells may not necessarily be bad investments, either.

Rather than copying Buffett's moves, you're likely better off focusing on his principles and looking for attractively priced stocks that you know very well. Finding those opportunities can lead to some great gains in the long run.

And while the current market volatility may scare you, don't forget that Buffett has remained invested in the market for decades, and his first stock purchase was during World War II. The short term may be full of uncertainty, but if you're holding for the long haul, that may not matter in the end.

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Bank of America is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Domino's Pizza. The Motley Fool recommends Constellation Brands, Kraft Heinz, and Nu Holdings. The Motley Fool has a disclosure policy.