Warren Buffett is one of the world's most renowned investors, and he just made a surprising major portfolio move that's worth taking a look at. He made a major investment in one company while selling a substantial number of shares in another.
Steal this billionaire wealth-building technique
The ultra-rich have also been investing in art from big names like Picasso and Bansky for centuries. And it's for a good reason: Contemporary art prices have outpaced the S&P 500 by 136% over the last 27 years.
A new company called Masterworks is now allowing everyday investors to get in on this type of previously-exclusive investment. You can buy a small slice of $1-$30 million paintings from iconic artists, all without needing any art expertise.
If you have at least $10k to invest and are ready to explore diversifying beyond stocks and bonds,see what Masterworks has on offer. (Hurry, they often sell out!)
Who is Warren Buffett?
Warren Buffett is Chairman and CEO of Berkshire Hathaway and is estimated to be the 10th richest person in the world. His investment strategy is based on value investing, a paradigm fueled by purchasing underpriced securities.
That usually means he believes the stock is worth more than the current market pricing when he makes a big move.
His latest significant investment is a surprise move, but it could mean he believes the company is undervalued. Learn which company just received his $87 million investment.
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Winner: Sirius XM
Last week, the world learned through an SEC filing that Buffett had purchased 36 million shares of Sirius XM (NASDAQ: SIRI) between Oct. 9-11. Total purchase price for all those shares was around $87 million.
Sirius is a satellite radio radio company. They recently announced several large content exclusives including an agreement to bring Alex Cooper's popular "Call Her Daddy" podcast to the Sirius platform in 2025. Cooper's show is currently available on Spotify.
This latest filing puts Buffett's stake in the company at at 108.7 million shares. He has steadily increased his investment in the satellite radio company since 2016.
Loser: Bank of America
On the other hand, Buffett has been ditching shares of Bank of America (NYSE: BAC) lately. He sold 9.5 million shares over three days earlier this month and he's been steadily selling the stock since July. In total, Berkshire Hathaway has sold off $10.5 billion worth of BAC shares.
We don't know exactly why Buffett is selling the stock, but it could have to do with falling interest rates. Banks earn less on their holdings when interest rates fall.
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Bottom line
If you want to make money moves like one of the wealthiest men on earth, it's worth knowing where he is putting his money.
Of course, there is no guarantee when it comes to investing, and we cannot recommend that anyone imitate Buffett. The best investments are the ones that make sense for you.
However, Buffett's moves indicate the direction of the economic winds, and new investors are always encouraged to do their research to determine what's best for them.
More from FinanceBuzz:
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- See what could happen if you add fine art to your investment portfolio.
- Find out if you're overpaying for car insurance in just a few clicks.
- 10 brilliant ways to build wealth after 40.
Masterworks Benefits
- Invest in art like a millionaire for a relatively low cost
- Art investments have outperformed the S&P 500 by over 131% for 26 years
- Purchase shares of artwork by top artists
- Hedge against inflation and diversify your portfolio
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