Musk said Buffett is basically the Federal Reserve, and reducing stock holdings is foreseeing some kind of market adjustment

Berkshire Hathaway, an investment company owned by Warren Buffett, released its second-quarter financial report on August 3, 2024. Data shows that Berkshire's revenue in this quarter reached US$93.653 billion, an annual increase of 1.24%, exceeding the market expectation of US$85.92 billion. Net profit was as high as US$30.35 billion, far exceeding the market expectation of US$17.786 billion.

Berkshire holds a huge amount of cash

Berkshire's financial report also revealed that it significantly reduced its holdings of a large number of stocks, including Apple and Bank of America, in the second quarter, cashing out about US$90 billion. This operation has caused Berkshire's cash reserves to surge to US$277 billion. This huge amount of cash is enough for Berkshire to fully acquire well-known companies such as Netflix, Salesforce, Toyota, Adobe or Hermes.

On the social media platform X, an opinion leader with more than 700,000 followers pointed out that Buffett's cash reserves are enough for him to fully acquire any of these companies, such as:

• Netflix: $263 billion

• Salesforce: $236 billion

• Toyota: $233 billion

• Adobe: $233 billion

• Hermes: $229 billion

Note: Of Berkshire’s $277 billion, $234.6 billion is in short-term U.S. debt, even approaching Taiwan’s holdings of U.S. debt ($257.3 billion, the country ranks 12th).

Musk's comments on Berkshire's financial report

Tesla founder Elon Musk commented on Berkshire's financial report on the X platform. He believes that Buffett obviously foresaw some kind of market adjustment, so he chose to significantly reduce his holdings of stocks and turn his attention to US bonds. Musk further pointed out that the time for the Federal Reserve to cut interest rates is imminent, but it is very stupid for them not to take action so far.

In a comment on another tweet, Musk highly praised Buffett's investment strategy, saying that it is almost equivalent to the Federal Reserve (Fed), suggesting that Buffett's influence in the market is even greater than that of the US central bank. Musk's remarks show his high recognition of Buffett's strategic vision, especially in the current market environment.