Posted by Sslee > 2 weeks ago | Report Abuse

Mind explain why Warren Buffett sell Bank of America stock?

Warren Buffett has added around $6 billion to Berkshire Hathaway's sizable cash pile this summer with a string of Bank of America stock sales since mid-July

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2 weeks ago | Report Abuse

Banks in US are risky investments at moment. Look at SVB bank, the bank that failed last year. Due to high Fed interest rates, the bonds it held was below book value and when there was a run on the bank, it was illiquid and went under very quickly. Banks are highly leveraged.

It is also known that many banks in US have balance sheets not dissimilar to that of SVB.

Why is Buffett raising cash? He probably think the market was overvalued and maybe banks are risky bets today. Buffett is a master of market "timing" too. He has been right in the few times he called the market tops and bottoms; and these were often at the extremes of the markets.

Posted by Sslee > 2 weeks ago | Report Abuse

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ SSLee Value investing is very much pricing the market/stock, and not timing the market/stock.
22/08/2024 3:56 PM

Warren disposed many of his stocks holding is he pricing the stock/market or timing the market/stock crash?

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2 weeks ago | Report Abuse

SSLee. It is extremely difficult to time the market. Those who claim to be able to do so consistently are not honest.

However, at the extreme of the market, you may have a high probability of being more right than wrong. It is just that pricing coincides with timing at the extremes of the market. Even then, Buffett called the bottom of the market in Sept 2008, coinciding with the Lehman bankruptcy. The market continued to go down and only reverted in March 2009.

At the top and the very bottom of the price trend, only a few transactions occurred

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2 weeks ago | Report Abuse

Buffett buys and sells based on pricing and not on timing.

Posted by Sslee > 2 weeks ago | Report Abuse

So taking profit is not a bad idea as you do not need to hold your beloved stocks forever.

Posted by Sslee > 2 weeks ago | Report Abuse

Today going to be a bloodbath opening.
Is it time to pick up some stocks?

Posted by Balian de Ibelin > 2 weeks ago | Report Abuse

Malaysian GDP ultra high => Funds ultra pump Banks
US GDP gonna drop [in Buffet dinner mind] => Buffet ultra dump Banks

Buy? => low will get lower😁

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2 weeks ago | Report Abuse

>>>
Posted by Sslee > 3 hours ago | Report Abuse

So taking profit is not a bad idea as you do not need to hold your beloved stocks forever.
>>>

Keep managing your portfolio. Optimise its quality and potential returns.

If you keep selling all your winners (just because you panic), you will be left with ______ in your portfolio.

Posted by Sslee > 2 weeks ago | Report Abuse

Is Warren Buffett recent selling of his winners a panic selling or taking profit in preparation for or timing the market/stock crash?

Posted by Balian de Ibelin > 2 weeks ago | Report Abuse

on paper, in theory, High GDP of Malaysia = low debt provisions and reversal of some bad debts => Malaysian Banks super profits.

in real life, I doubt it😁

For US its critical coz most banks could be "more insolvent" with greater provisions under low GDP.
=> In real life Buffet sell for nothing, bank shares may just drop a bit only
coz Federal Reserve Board (FRB), the Federal Deposit Insurance Corp. (FDIC), and the Securities and Exchange Commission (SEC). => do and had always changed the rules to allow way Higher compulsory gearing ratio requirements than normal.

Posted by Balian de Ibelin > 2 weeks ago | Report Abuse

sslee likes good earnings next QR => buy
so Malaysia High GDP => Banks super profits => buy

are sure or not ? but funds dun care. just pump banks up.😁

Posted by Sslee > 2 weeks ago | Report Abuse

LHI and Jayatiasa next quarter earning should be better.

Posted by speakup > 2 weeks ago | Report Abuse

Pmx is blurrr sotong. The higher CI stocks goreng up, the more they drop later and more ppl will get slaughtered! Stop manipulating the CI to hide weakness in the broader market! Stop it!

Posted by Kicapmanis > 2 weeks ago | Report Abuse

speakup have some deep grudge towards pmx?

Posted by speakup > 2 weeks ago | Report Abuse

https://www.bfm.my/podcast/morning-run/the-breakfast-grille/ambiga-madani-government-unity-anwar-reform-institution-constitution
speakup is like Dato Ambiga who once support PH kaw kaw only to be disappointed again and again with PH breaking promises of major reforms!

Posted by speakup > 2 weeks ago | Report Abuse

last time speakup donate a lot money to pakatan rakyat & harapan in previous GE. but come GE16 speakup will not donate anymore to harapan. realised donation money all wasted if promises never kept

Posted by Sslee > 2 weeks ago | Report Abuse

We Malaysians will be caught between a rock and a hard place forever.
So I do not mind my children migrate to other country.

My second son is now a Singaporean

Posted by Chipee > 14 hours ago | Report Abuse

How do you report on capital gain to IRB? As I know there's no capital gain tax. Or no need to report at all even when for day trading.