Many investors follow Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio of nearly 50 stocks and exchange-traded funds for fresh investment ideas. It's a great starting point because those investments were hand-picked by Warren Buffett, one of the world's most acclaimed investors, and his experienced management team.

That's why it was alarming when Berkshire started selling a lot of stocks -- including half of its stake in Apple and all of its shares of HP and Snowflake -- during the past year. Its cash and equivalents also swelled to a record $277 billion at the end of the second quarter, which suggests Buffett is hoarding some dry powder in anticipation of a stock market slump.

Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.

Continue reading

Source Fool.com