<div id="readability-page-1"><div id="keypoints"> <ul> <li> A number of analysts believe that Warren Buffett’s unusual bearishness of late reflects a “wait and see” attitude about the impact of the US tariff policies that commenced on August 1st. </li> <li> The large cash horde that Berkshire Hathaway has amassed is viewed as Buffett’s way of keeping powder dry for any buying opportunities. </li> <li> Berkshire’s $3.76 billion write down of Kraft Heinz, one of Buffett’s rare missteps, is viewed by some as part of several steps in his clearing the board for incoming CEO Greg Abel. </li> <li> Nvidia made early investors rich, but there is a new class of ‘Next Nvidia Stocks’ that could be even better. Click here to learn more. </li> </ul> </div> When Warren Buffett began selling off Berkshire Hathaway’s (NYSE: BRK-B) stakes in Apple and Bank of America to load up on cash, Wall Street took notice. Buffett’s accumulation of cash and his rare departure from his standard “buy and hold” strategy sent bearish red flag alerts to traders and investors around the world. While many are speculating about what the “Oracle of Omaha” is planning, the steps that Warren Buffett has taken and has set in motion may reflect other concerns apart from the stock market. <h2>A Mountain of Cash</h2> <figure><img src="https://imageproxy.pbkrs.com/https://247wallst.com/wp-content/uploads/2025/03/shutterstock-2268556669-huge-licensed-scaled.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1500" height="1000" original-src="https://imageproxy.pbkrs.com/https://247wallst.com/wp-content/uploads/2025/03/shutterstock-2268556669-huge-licensed-scaled.jpg"/><figcaption>Berkshire Hathaway’s sale of nearly $7 billion worth of stocks has resulted in a humungous stock pile of cash to have liquidity for future opportunities.</figcaption></figure> Sitting on a roughly $344 billion cash and short term Treasury bond war chest, Buffett decided to stay on the sidelines during the initial April market drop and subsequent bounce back when President Trump’s reciprocal tariff policies were first announced. Berkshire’s Q2 results showed that the company was still a net seller of stocks, buying $3.9 billion, but selling $6.92 billion. With Buffett’s favorite S&amp;P 500 index making new highs, his decision to refrain from capitalizing on a substantial buying opportunity has left fans and followers puzzled, but still loyal. Many of them are awaiting announcement of the next big Buffett move, with emulation often the end result. <h2>$3.76 Billion Write-Down of Kraft Heinz</h2> <figure><img src="https://imageproxy.pbkrs.com/https://247wallst.com/wp-content/uploads/2022/04/imageForEntry2-L7r.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1366" height="767" original-src="https://imageproxy.pbkrs.com/https://247wallst.com/wp-content/uploads/2022/04/imageForEntry2-L7r.jpg"/><figcaption>The Kraft Heinz deal was one of Buffett’s few miscalculations.</figcaption></figure> Although Berkshire Hathaway maintains a 27% stake in Kraft Heinz, it has finally written down the investment, a long overdue move on one of Buffett’s rare miscalculations. The write-down diminished operating earnings ($430 million), although the year-over-year disparity between total earnings ($17.87 billion) seems much larger because of the paper gains from the 2024 Apple stock sales. Analysts have wondered why there was such a long delay in acknowledging the losses.<img src="https://imageproxy.pbkrs.com/https://247wallst.com/wp-content/uploads/2025/01/Follow-Our-500000-AI-Portfolio-3.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="468" height="120" original-src="https://imageproxy.pbkrs.com/https://247wallst.com/wp-content/uploads/2025/01/Follow-Our-500000-AI-Portfolio-3.jpg"/> <h2>Railroad Challenges</h2> <figure><img src="https://imageproxy.pbkrs.com/https://247wallst.com/wp-content/uploads/2019/01/imageForEntry9-10.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1366" height="767" original-src="https://imageproxy.pbkrs.com/https://247wallst.com/wp-content/uploads/2019/01/imageForEntry9-10.jpg"/><figcaption>Berkshire Hathaway’s BNSF is the largest railroad in the USA.</figcaption></figure> A recently announced merger proposal between Union Pacific Railroad and Norfolk Southern Railroad has also created competition concerns for Berkshire Hathaway’s BNSF railroad. Although BNSF is the largest US railroad, the prospect of rivals Union Pacific and Norfolk Southern supplanting BNSF has led some to suggest that Berkshire should acquire Eastern Rail CSX. However, in addition to potential antitrust issues from the FTC, Buffett is notoriously averse to buying companies unless he can get them at a bargain price. BNSF is doing excellent business, with a 19% profit increase reported, and CSX is trading at a 52-week high, which is prohibitively expensive for the thrift-minded Buffett. <h2>Internal Challenges</h2> <figure><img src="https://imageproxy.pbkrs.com/https://247wallst.com/wp-content/uploads/2024/12/shutterstock-2447932739-huge-licensed-scaled.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1500" height="1000" original-src="https://imageproxy.pbkrs.com/https://247wallst.com/wp-content/uploads/2024/12/shutterstock-2447932739-huge-licensed-scaled.jpg"/><figcaption>The threat of US tariffs have led to trillions of international investment commitments. However, their impact on Berkshire businesses remains to be seen.</figcaption></figure> The state of the economy, geopolitical events and tariffs leaves Berkshire Hathaway vulnerable. “The pace of changes in these events, including tensions from developing international trade policies and tariffs, accelerated through the first six months of 2025,” the 10-Q report reads. “It is reasonably possible there could be adverse consequences on most, if not all, of our operating businesses.” The 10-Q also noted that after-tax operating profit fell 4% in the second quarter vs. last year to $11.2 billion. This was due to $877 million in foreign exchange losses due to Berkshire’s U.S.-dollar debt. Without that, its operating profit would have risen 8%. Buffett is justifiably concerned about the impact of US tariffs on Berkshire businesses. The multinational nature of many of those wholly owned subsidiaries’ supply chains, manufacturing, shipping, and other aspects of their operations subject to potential tariff impact are such that a complete estimate is still a question mark. Additionally, the reaction from the Apple and Bank of America stock sales added uncertainty to Berkshire Hathaway, which has already seen investor preferences shifting towards technology, AI, and other sectors with more sizzle and short term, upside potential. As such, the company, which habitually leaves the S&amp;P 500 behind in its rear view mirror, has underperformed Buffett’s favorite stock index in the last 4 out of 7 years. From a technical analysis perspective, Berkshire stock’s 50- and 200-day moving averages are drifting precipitously towards “bearish” territory. <h2>Succession</h2> <figure><img src="https://imageproxy.pbkrs.com/https://247wallst.com/wp-content/uploads/2022/10/imageForEntry45-Y7I.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1369" height="768" original-src="https://imageproxy.pbkrs.com/https://247wallst.com/wp-content/uploads/2022/10/imageForEntry45-Y7I.jpg"/><figcaption>Much like the hit HBO series, “Succession”, Berkshire’s future was in limbo for years when Buffett approached his 90s with no designated forthcoming CEO, until he chose Greg Abel.</figcaption></figure> The question of succession had been one that concerned many Berkshire Hathaway shareholders in recent years. At over age 90, and with partner Charlie Munger recently passed away in 2023, Buffett finally nominated Vice Chairman Greg Abel to succeed him as CEO in December 2025, while Buffett continues as Chairman. Several analysts and financial journalists think that the cash war chest and clearing of baggage like Kraft Heinz is Buffett’s way of giving Abel a clean slate from which to build his own string of stock market and private company wins for the benefit of Berkshire shareholders. <h2>Buffett Still Has His Touch</h2> <figure><img src="https://imageproxy.pbkrs.com/https://247wallst.com/wp-content/uploads/2019/06/imageforentry32-mvh.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1366" height="768" original-src="https://imageproxy.pbkrs.com/https://247wallst.com/wp-content/uploads/2019/06/imageforentry32-mvh.jpg"/><figcaption>Avionics and electronics are just two areas of the aerospace sector for which Heico Corp. supplies necessary equipment.</figcaption></figure> Until Warren Buffett officially steps down from day-to-day operations and stock picking, he is still a formidable investor that has proven he hasn’t lost his touch. Just a few months ago, in a May 15 SEC filing, Berkshire Hathaway reported it owned 1,162,088 shares of Florida based aerospace and electronics company Heico Corp (NYSE: HEI). In May, Heico was trading in the $268 region. At the time of this writing, it is at $337.56. Berkshire Hathaway may appear to be in the doldrums, but there are some clues that there is a method to the madness. While Berkshire may not have the capacity to make incredible bull runs in short time spans like Nvidia, the conglomerate is still highly profitable each year. Therefore, what may appear to be bearishness on Buffett’s part may actually have a more wily underlying rationale for the future. The post Warren Buffett Has Never Looked This Bearish appeared first on 24/7 Wall St..</div>

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Warren Buffett's recent selling of Berkshire Hathaway's stakes in Apple and Bank of America to accumulate cash has raised concerns among investors, signaling a bearish outlook. Analysts suggest this reflects a cautious stance on the impact of US tariff policies. Berkshire's significant cash reserves, totaling around $344 billion, indicate readiness for future opportunities. Additionally, a $3.76 billion write-down of Kraft Heinz highlights Buffett's rare missteps. The company faces challenges from competition in the railroad sector and potential adverse effects from international trade policies and tariffs.

- Analysts suggest Warren Buffett's recent bearishness reflects a cautious stance regarding the impact of new US tariff policies.  
- Berkshire Hathaway's significant cash reserves and the $3.76 billion write-down of Kraft Heinz indicate a strategic preparation for future opportunities, especially with Greg Abel set to succeed Buffett as CEO.  
- Despite concerns over tariffs and competition, Buffett's investment decisions may signal a calculated approach rather than a loss of confidence in the market.