“Warren Buffett Sells Billions in US Stocks, Indicating Impending Recession, Says Expert”

Investing.com – Legendary investor Warren Buffett, chairman of the board of directors, is considered a visionary when it comes to investment strategy.

At the company’s most recent shareholder meeting last Saturday, Buffett said the company had sold $13.3 billion worth of shares while investing $4.4 billion in buybacks of its own shares and placing another $2.9 billion in other securities.

Steve H. Hanke, a professor of applied economics at Johns Hopkins University, said Berkshire’s move indicates that Buffett, whose famous ability to predict the state of the market earned him the nickname “The Oracle of Omaha”, is once again very astute about the state of the US economy.

“Warren Buffett’s sale of billions of dollars worth of US stocks shows that he correctly predicts the onset of a recession in the US in the near future,” Hanke told Newsweek.

“Economic activity will worsen. When a recession is around the corner, Buffett knows that cash is royal wealth, especially when he can earn a decent commission on it,” Hanke warned.

David Nicholas, chairman and founder of Nicholas Wealth Management, recalls that “Buffett’s 3 big risks are China, US banking and real estate. These are very real risks to economic growth, and only one of them would be enough to derail growth, but we are dealing with all three at the same time.”

Berkshire is investing the bulk of its $130.6 billion cash in Treasury bills and short-term bank deposits, a sign that the company has benefited from the interest rate hike set by the US Federal Reserve.

Written by Laura Sanchez

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