When the market is booming, and everyone is buying new shares in hopes of profit, this experienced person is doing the opposite. He is selling off his favorite App*e and Bank shares.
Can you believe it? Buffett currently has $325 Billion Cash sitting idle! Can you imagine the amount of money?
The simple truth is—he cannot trust the market. He feels everything is overpriced now. So he is sitting on the sidelines, taking profits without taking risks. He knows this hype won't last long. When the market crashes, he will buy everything back cheaply with that cash.
Listening is absolutely simple for us:
Don't throw all your money into the hype just because the market is rising. Keep some 'Cash' on hand like Buffett. Remember, the real players are currently in 'Wait and Watch' mode.
Don't be greedy, follow Buffett's strategy. At the end of the day, cash is king!
