As a long-term value investor, Buffett usually adopts a long-term holding strategy for his holdings, so his clearance action may release several important signals. First, this may indicate that Buffett is concerned about the current market valuation. Since 2022, after the significant volatility in the stock market following the epidemic, U.S. stocks have been rising significantly for two consecutive years, especially the strong performance of technology stocks driving the overall market up. After such a bull market, there may have been an overvaluation bubble in the market, and Buffett's operation may reflect his expectations for a future market correction.
Secondly, Buffett's clearance may also imply his cautious attitude towards the global economic situation and interest rate environment. The Federal Reserve's high-interest-rate policy may restrain economic growth, increase corporate financing costs, and thus affect corporate profits. Buffett has always emphasized the need to remain cautious in times of market turmoil and increased uncertainty. This large-scale sell-off may be a defensive measure he has taken to address potential economic downturn risks.
As for adjusting holdings following Buffett's operations, I will start from my own investment goals and risk tolerance. While Buffett's operations are worth paying attention to, every investor's situation is different. I believe that U.S. stocks have risen a lot since 2022, and there may be a risk of a short-term correction in the market. Therefore, I will appropriately reduce positions at the current market peak, especially in some overvalued technology stocks. At the same time, I will also hold some core assets, especially those with long-term...