Buffett Bails on $AAPL

After the market closed yesterday there was a tremendous block trade that got many people to believe a big holder in Apple is actively raising cash. It turns out that seller was Warren Buffett, bailing on 50% of his $AAPL position to a paltry $85b. It’s also worth noting Berkshire’s cash position is now $277b.

To be honest I don’t think it’s really a big deal but markets tend to exaggerate these sort of events during times of rout. We are being routed and in a squall and very soon LIMIT DOWNS will happen and apparitions of former bear market participants will appear at your transom to instill fear into you, lest you’ll be eating parsnips for the duration of your lives.

Warren Buffett is 93 years old and even back when I got into the business back in the 90s we thought he was old and somewhat retarded. Sure he rode $KO from its IPO to the moon; but that doesn’t mean he knows the first thing about tech. That slight on olde Warren is a classic trope against old rich people, most likely a cope of some sort. What we should be looking at is the Bank of Japan if they’re going to allow their garbage Yen appreciate like this.

You should remember that your job as long term investors is to ride these routs out and not think about them too often. On a long enough timeline all of these stocks will be back to record highs, in spite of what all of the lunatics who’re predicting catastrophic declines in the dollar and stocks. The dollar is weakening because the economy warrants rate cuts and the market is merely pricing that in. The expectation is for a weak economy, soon to be saved by the Fed. This is largely exaggerated and once people understand the sky isn’t falling, shit will go up again.

If saddled with positions: make sure they are of good quality. Keep a cash reserve and use that to hedge and day trade, carefully taking quick profits to reduce drawdowns. BUT, and this is an important one, try to make sure your hedges DECREASE in size as the sell off deepens, because nothing can be worse than first getting fucked on the way down and then missing the rally back on the way up. DO NOT MISS THE FUCKING RALLY.