Warren Buffett continued selling stocks in the first quarter of 2025. He is happy to take gains and pay taxes in today’s market. His favorite investment pays a high yield and offers a lot of flexibility.
Buffett keeps selling when he finds market conditions are good. In his 1994 letter to shareholders, he said, “We try to price, rather than time.” When a stock gets expensive, Buffett is more likely to sell it. This past year, Buffett made big sales, especially of financial stocks in his portfolio.
Berkshire completely sold its position in Citigroup last quarter, in addition to Bank of America. Buffett first bought Citigroup in 2022 when it was cheap and facing challenges. But he lost patience due to Citigroup’s ongoing disappointing financial results.
The stock now trades at just 0.8 times its tangible book value. Buffett also sold Nu Holdings and Capital One Financial. As a result, banks, insurance, and finance stocks made up 32% of Berkshire’s portfolio at the end of Q1 2025, down from 34% at the end of 2024.
Buffett’s strategic stock sales continue
Overall, Buffett’s stock sales brought in $4.7 billion while he spent $3.2 billion buying other stocks. Last quarter, Buffett added $13.8 billion to U.S. Treasury bills.
This shows he prefers high-yield, low-risk investments. Berkshire’s total Treasury holdings are now $314 billion. With cash holdings too, Buffett has $347.7 billion of capital.
He was burned by longer-dated bonds in the 1970s, so he chooses short-term investments like Treasury bonds. The yield on six-month Treasuries is currently 4.3%. The expected interest from these short-term investments will bring in about $3.4 billion for Berkshire next quarter.
Buffett stresses the importance of being patient and waiting for the right investment opportunities. While Buffett piles into Treasuries, the average investor might find better returns in smaller stocks. It can be hard to copy Buffett’s moves.
But understanding his principles can help investors looking for stability and yield in uncertain markets.
