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Berkshire Hathaway settled the holdings of the S&P 500 ETFs from Vanguard and State Street Global Advisors, leaving Hellwether Investor to take the ETF position.
Berkshire shares in SPDR S&P 500 ETF Trust (SPY) and Vanguard S&P 500 ETF (VOO) were valued at approximately $22 million each and dissolved in the fourth quarter.
The sales highlight the long-term trend of retreating from securities in Berkshire, increasing its cash position to a record high, and increasing its year-end USD 33.42 billion.
At nine quarters, Berkshire was a net seller of securities.
This article was published previously Ignitesa title owned by the FT Group.
Speaking in his recently released annual letter, CEO Warren Buffett dispelled speculation that he viewed the market as being overvalued.
“Even though some commentators now consider Berkshire's extraordinary cash job, the majority of your money remains in the stock,” he said. “That preference remains the same.”
Buffett has spoken enthusiastically about index funds in the past, particularly Vanguard's index funds. Written in a 2016 letter, he recommended “low-cost index funds” as a great alternative to hedge funds.
“If it's managed by Wall Streets, which charges trillions of dollars, it's usually a manager who enjoys the extraordinary benefits, not a client,” he said at the time.
In the same letter, Buffett welcomed Vanguard founder Jack Bogle as the best champion of investors the country knows.
“If a statue is erected to honor those who have done the most for American investors, the handdown choice must be Jack Bogle,” Buffett said. “In his crusades he usually does nothing while committing big rewards to investors, or in our bets, nothing – accumulating only a small portion of the wealth that flows to managers who have promised value-added.”
*Ignites is a news service published by FT specialists for professionals working in the asset management industry. Trials and subscriptions are available Ignites.com.
