Professional and everyday investors frequently await Berkshire Hathaway's quarterly Form 13F filing to gain an idea of which sectors, industries, trends, and stocks Buffett and his top lieutenants, Todd Combs and Ted Weschler, bought into and sold out of in the latest quarter.
But sometimes Berkshire's quarterly operating results, or Form 4 filings with the Securities and Exchange Commission, can tell a more thorough story -- even if it's an unpleasant one.
Arguably the best thing about Warren Buffett is that he's usually an open book. Though there have been a couple of occasions where he and his team have built up a sizable position in a stock using confidential treatment -- insurer Chubb is the latest example -- Buffett has typically been upfront about his thoughts on the U.S. economy and stock market.
On more than one occasion, the Oracle of Omaha has cautioned investors not to bet against America. Though Buffett, Combs, and Weschler are fully aware that recessions are perfectly normal and inevitable, they also realize that periods of economic growth and bull markets last substantially longer than recessions and bear markets.
Recently, Buffett has been a somewhat aggressive seller of Bank of America (NYSE: BAC) stock. Between July 17 and Aug. 30, Berkshire's stake in BofA has declined by about 150 million shares, equating to roughly $5.4 billion.
This $5.4 billion in selling activity is a pretty clear warning to Wall Street and investors.
The fact that Buffett has dumped nearly 15% of his company's stake in Bank of America in a span of just over six weeks suggests clear worry about the U.S. economy and stock market. Like pretty much all bank stocks, BofA is cyclical.
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