{"id":34070,"title":"Warren Buffett’s empire of stocks loses $15bn due to global market crash","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2024-08-06T04:24:29+00:00","modified":"2024-08-06T04:24:29+00:00","canonical_url":"https://stockmark.it/warren-buffetts-empire-of-stocks-loses-15bn-due-to-global-market-crash/","markdown_url":"https://stockmark.it/warren-buffetts-empire-of-stocks-loses-15bn-due-to-global-market-crash.md","json_url":"https://stockmark.it/warren-buffetts-empire-of-stocks-loses-15bn-due-to-global-market-crash.json","category":"Global Economy","categories":["Global Economy","Shares"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-2024-08-06T052305.579.jpg?fit=1200%2C800&quality=89&ssl=1","format":"news","language":"en-GB","content":"Warren Buffett’s stock-holding empire has suffered a loss of at least $15bn in the midst of a global market sell-off.\n\nApple, Bank of America, and Mitsubishi all saw their stock values plummet on Monday.\n\nThis decline is despite the fact that Mr Buffett’s investment firm has built up significant cash reserves by cutting its stock market positions in recent months.\n\nBerkshire Hathaway’s cash holdings reached a record of $277bn in the last quarter. This was boosted by an $76bn sale of stock.\n\nAs fears of an American recession increase, these efforts should have lessened the impact of Monday’s global stock market crash.\n\nBerkshire Hathaway’s shares dropped by 3pc during the recent market crash, bringing its market capitalization down to $897bn.\n\nThe chaos caused a steep decline in its stakes in Japanese firms, including Tokyo giants Mitsui Marubeni and Sumitomo.\n\nBerkshire Hathaway was also hit by the loss of hundreds of millions in value from American Express, Moody’s Financial Services and Kraft Heinz.\n\nCalculations show that the investment company’s stakes in Apple have lost more than $7pc of their value since Apple’s share prices dropped by over 7pc.\n\nOver the weekend, it was revealed that Berkshire Hathaway sold almost half its stock in Apple Inc.\n\nMr Buffett reduced the company’s Apple stake by another $50bn, to $84.2bn, in the second quarter 2024.\n\nThe 93-year old investor’s latest cash sale suggests he is becoming more wary of the US economy or overvalued stock market prices.\n\nMr Buffett – often referred to as the Sage Of Omaha because of his decades-long success in stock picking – reassured his shareholders that Apple is a long-term company investment.\n\nApple will be the largest investment for Berkshire Hathaway, according to Mr Buffett, speaking at Berkshire Hathaway’s annual meeting. “Unless something dramatic happens that changes our capital allocation strategy, Apple will be our biggest investment.”\n\nApple and members of the Magnificent 7 group of stocks, which includes Alphabet (Alphabet), Microsoft, Nvidia, and Tesla, suffered their biggest drops in history amid fears of a tech bubble burst.\n\nplayers, however, see the fall as an opportunity to buy. Blue Whale, a fund of investment backed by Peter Hargreaves – billionaire cofounder of investor platform Hargreaves-Lansdown – took advantage the sell-off in the stock market to purchase shares in Nvidia.\n\nStephen Yiu told the Financial Times that the fund manager, Stephen Yiu, was “top-up [Nvidia].” The market has a narrative — with which we disagree — that AI applications are slowing down."}