Warren Buffett, chairman of Berkshire Hathaway, has made significant investment moves, including a 67% reduction of his stake in Apple (NASDAQ: AAPL), amidst a strong overall market performance in 2022. Buffett’s strategy has historically yielded a compounded annual gain of nearly 20% since 1965, compared to a 10% increase in the S&P 500.
Buffett’s investments have helped grow Berkshire Hathaway’s portfolio to $258 billion. Notably, dividends from his long-held Coca-Cola (NYSE: KO) investment increased from $75 million in 1994 to $704 million in 2022. His recent cuts in S&P 500 exposure came as the S&P 500 Shiller CAPE ratio surged past 36, signaling high market valuations.
Buffett’s cautious approach anticipates potential market pullbacks, coinciding with economic uncertainties like import tariffs and mixed data. Despite reduced valuations, Buffett has not made significant purchases in Q1 2023, focusing instead on positions in Constellation Brands and Pool Corp.
