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What did Buffett buy with the money from selling Apple?

Bobby
Bobby
August 11, 2024
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I checked Berkshire's semiannual report, and the liquid cash held has basically not changed, holding about 36 billion US dollars. However, the Treasury bonds held increased from 129.6 billion US dollars at the end of 2023 to 234.6 billion US dollars, and the amount of increase in half a year was as high as 105 billion US dollars.



The advantage of holding treasury bonds is that at the Berkshire shareholders meeting in May this year, Buffett said a key statement:

We will not use this money at the current interest rate of 5.5%. The interest rate is so high now (don't tell the Federal Reserve 😉). We only swing at the right time, but now many people swing at any time because they think they have been swinging and hitting nothing before, and they think they will hit the right target if they always hit.


From Buffett's words, I think he thinks that holding U.S. Treasuries has a high certainty of return, and certainty is the first priority for him. Buffett does not want to make the same mistake as Coca-Cola. In the high valuation area of ​​Apple's 32 PE, it is more cost-effective to switch to treasury bonds.