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Buffett moves to Treasury Bills as Apple and Bank of America stakes shrink

Warren Buffett significantly cuts holdings in Apple and Bank of America in favor of U.S. Treasury bills.

July 19, 2025 at 08:05 AM

Warren Buffett Sold Apple and Bank of America in Favor of This Boring Investment Offering a 4.3% Yield

Buffett continues to favor this stable source of revenue for Berkshire Hathaway's portfolio.

Warren Buffett Chooses U.S. Treasury Bills Over Apple and Bank of America

Warren Buffett has shifted his strategy, selling significant portions of his stakes in Apple and Bank of America. Recent reports indicate that Berkshire Hathaway has reduced its Apple holdings by 67% and its Bank of America stake by 39%. This follows a trend where Buffett now finds many stocks overvalued. Instead, he has invested heavily in U.S. Treasury bills, which are yielding around 4.3%.

Key Takeaways

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Buffett sold 67% of Berkshire's Apple shares and 39% of Bank of America shares.

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He has invested heavily in U.S. Treasury bills with a yield of 4.3%.

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Berkshire sold $174 billion more stocks than it bought in recent quarters.

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The S&P 500 trades at a forward P/E of above 22, indicating potential overvaluation.

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Buffett's strategy shift may foreshadow market challenges ahead.

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Investors are encouraged to explore smaller, undervalued stocks not in the spotlight.

"Berkshire shareholders can rest assured that we will forever deploy a substantial majority of their money in equities."

This reflects Buffett's preference for equities despite shifting to bonds for now.

"Buffett has concluded that many equities in Berkshire's portfolio might not be worth as much as the market is paying for them."

This comment explains Buffett's recent selling strategy amidst rising valuations.

Buffett's movement towards Treasury bills highlights his cautious stance amid rising stock valuations. The significant reduction in equity stakes may indicate a broader concern about an overheated market. Investors should consider the implications of this shift, as Buffett's actions often signal larger investment trends. However, this move towards a more fixed income strategy could also suggest a challenging environment for equity investors in the near future.