Investors Are Being Warned Not to Panic by Changes in Buffett's Portfolio

Although the future of American equities is far from guaranteed, Warren Buffett does not believe that investors should worry.

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Buffett famously remarked that he "tries to be greedy only when others are scared and to be fearful only when others are greedy."

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Well, it appears that he is neither scared nor greedy at the present, as Berkshire Hathaway made very few purchases and sales at the close of the previous year.

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His conglomerate didn't take any fresh positions in businesses, and the equities it sold were mainly Taiwan Semiconductor and U.S. Bancorp.

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Given that he has always counseled investors to view recessions or downturns as opportunities to buy strong companies, this may indicate that Buffett isn't anticipating a severe recession in the near future.

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Investors will have to wait until later in the month, when the billionaire is scheduled to send his annual shareholder letter, for any market or economic insights from him.

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Perhaps he believes there is less chance of a recession. It wouldn't just be him.

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Inflation in the United States decreased for a seventh straight month in January, which, when combined with a robust employment market, raises the possibility of an economic soft landing.

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The Federal Reserve's work is not yet done, though. In January, the index of consumer prices decreased to a lower-than-expected annual pace of 6.4% from December's 6.5%.

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The Federal likely needed to see more before it began to consider shortly ending interest rate hikes. Market pressure is therefore expected to persist for the time being.