Is Buffett Still Preaching Buy-and-Hold? Maybe Not...
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Typically, Warren Buffett is a value investor, preaching the buy-and-hold strategy to whomever will listen. Except, even he might be looking to profit when a short-term profitable opportunity arises.
Buffett's Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) took an 11.5 million stake in Intel (Nasdaq: INTC) in the second-half last year, with an average price per share of $22 each. The firm then sold out of the stake by May 8th of this year, for an average price of $27.25 per share, grossing $60 million in the process. That means Buffett held Intel for less than a year, something very untypical for the billionaire investment guru.
The move has helped to propel Berkshire stock to its highest levels seen since October 2008.
Though sales weren't exactly at the top -- Intel hit above $29 in May -- unloading the stock helped Buffett to avoid over a 15 percent slide in the stock following trimmed expectations on September 7th. The outlook reduction comes as PC makers are ebbing orders for Intel chips on slowing demand, the company noted.
Of course, Buffett isn't exactly eschewing the old buy-and-hold adage; Berkshire still retains significant spots in staples such as Wells Fargo (NYSE: WFC), Kraft (Nasdaq: KFT) and Coca-Cola (NYSE: KO), among others.
But, when it comes to tech, no company is safe from the cyclic turns that can jostle the market. Consumers can live without that next laptop upgrade, but will they really give up something simple like a Coke or some Mac & Cheese?
Shares of Berkshire ended the session up 2 percent to $132,851 on Thursday, its highest close since October 3rd, 2008.
Typically, Warren Buffett is a value investor, preaching the buy-and-hold strategy to whomever will listen. Except, even he might be looking to profit when a short-term profitable opportunity arises.
Buffett's Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) took an 11.5 million stake in Intel (Nasdaq: INTC) in the second-half last year, with an average price per share of $22 each. The firm then sold out of the stake by May 8th of this year, for an average price of $27.25 per share, grossing $60 million in the process. That means Buffett held Intel for less than a year, something very untypical for the billionaire investment guru.
The move has helped to propel Berkshire stock to its highest levels seen since October 2008.
Though sales weren't exactly at the top -- Intel hit above $29 in May -- unloading the stock helped Buffett to avoid over a 15 percent slide in the stock following trimmed expectations on September 7th. The outlook reduction comes as PC makers are ebbing orders for Intel chips on slowing demand, the company noted.
Of course, Buffett isn't exactly eschewing the old buy-and-hold adage; Berkshire still retains significant spots in staples such as Wells Fargo (NYSE: WFC), Kraft (Nasdaq: KFT) and Coca-Cola (NYSE: KO), among others.
But, when it comes to tech, no company is safe from the cyclic turns that can jostle the market. Consumers can live without that next laptop upgrade, but will they really give up something simple like a Coke or some Mac & Cheese?
Shares of Berkshire ended the session up 2 percent to $132,851 on Thursday, its highest close since October 3rd, 2008.
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