To The Moon

🧧🧧🧧We are officially in the Year of the Fire Horse 🐎🔥, a year of speed and transformation.  Nothing captures that "shifting of the guard" more than the latest 13F filing from Omaha.  We are witnessing the final portfolio adjustments of Warren Buffett as he steps down as CEO  of $Berkshire Hathaway(BRK.B)$  .  It is emotive.  It is historic. It is true to form. It is a masterclass in discipline.

The Stats: The Classic Buffett Fortress 

Even as he hands over the reins to Greg Abel, Warren Buffett is leaving the stable in impeccable shape.  Berkshire's equity portfolio has climbed a staggering USD 274 billion.

The Power of Focus: The top 10 holdings still account for 88% of total assets.  While others diversify into "mediocrity", Warren Buffett reminds us:

Concentration builds wealth.  Diversification preserves it.

The Cash Pile:  Berkshire is sitting on a record USD 325 Billion in cash.  That is not just "dry powder".  That is a nuclear deterrent against market volatility.

The Great Tech Trim: Apple and Amazon 

The most talked about moves?  The Oracle of Omaha is trimming his "Digital Thoroughbreds".

Apple $Apple(AAPL)$  Trimmed for the 3rd straight quarter.  Why?  It isn't because he hates the iPhone.  It is about Tax Management and Risk Mitigation.  When your Apple stake becomes a "Goliath" in your portfolio, even a legend has to prune the tree to let the other horses breathe.

Amazon $Amazon.com(AMZN)$  Cut by over 77%.  This is the "shock" move.  It suggests that at the current valuations, the "Growth at any price" narrative is losing its lustre for the value king.

The Stock Whisperer Insights:  Is Tech Too Expensive?

Let's be frank.  When the man who bought Apple at the " perfect" time starts selling, we listen.

Valuation Fatigue:  With the S&P500 index trading at high multiples,  Warren Buffett is signalling that the "Fire Horse" might be running a bit too hot.  He is taking chips off the table while the lights are still bright.

Success in Autopilot: By moving into Short term Treasuries, Warren Buffett is putting Berkshire's success on "Autopilot".  He is waiting for the "Fat Pitch" - the next big crash where he can deploy that USD 325 billion.

What's Next for Berkshire?

The "Post Buffett" era won't be about wild parties.  It will be about Greg Abel and the team maintaining the "Steady Workhorse" culture.  I would expect Berkshire to move towards Energy Infrastructure like $Chevron(CVX)$  and $Occidental(OXY)$  .

Why the Energy Obsession?  The "Inflation Hedge" Stallion 

Warren Buffett doesn't just see oil.  He sees Cash Flow and Scarcity.  Here is why he is riding with Chevron and Occidental:

The Permian Powerhouse: Occidental owns a massive chunk of the Permian Basin.  This is the richest "grassland" for oil in the US.  Warren Buffett loves companies that own the "Digital Soil" of the physical world.

The Dividend Engine: Chevron has increased its dividends for 37 consecutive years.  It is a Dividend Aristocrat.  It is the kind of passive income that fuels Berkshire's massive Hong Baos (cash reserves).

The Infrastructure Advantage:  In the Year of the Fire Horse , speed is everything.  But Chevron is proving that sometimes the "Steady Workhorse " wins by simply refusing to leave the track.  While others fled Venezuela, Chevron stayed.  Now Chevron is holding the keys to the world's largest proven oil reserves.

The Production Gallop: Chevron aims to increase production by 50% over the next 18 to 24 months.  It is already producing about 240,000 to 250,000 barrels per day and targeting towards 360,000.

The Vertical Moat:  This heavy crude is perfect for Chevron's Pascagoula refinery in the Mississippi.  It is vertical integration working exactly as designed - drilling it low cost in Venezuela and refining it for top tier margins in the US.

The Share Buyback Loop: Both Chevron and Occidental are aggressively buying back their own shares.  As an investor, your piece of pie gets  bigger without you lifting a finger.  Leveling up on Autopilot!

The Bottom Line 

Warren Buffett likes Energy because in a world of AI and Space Rockets, we still need fuel to move the world.  It is the "Un Sexy" success that allows him to sit on USD 325 billion in cash while waiting for the next "Dark Horse" opportunity.

Watching the Oracle of Omaha adjust his final portfolio is like watching a Grandmaster play his last game of chess.  It is a reminder that Success Leveling Up often means having the courage to sell when everyone else is screaming "Buy".

To The Wonderful Tiger Community and The Tireless Staff :

May your Hong Baos be as concentrated as Warren Buffett's Top Ten!  

May your Success stay in Autopilot.

May you have the Wisdom to know when to let  your "Thoroughbreds" run and when to lead them back to the stable.

Huat Ah!   Let's Invest like Legends!🥰🥰🥰🐯🐯🐯🌈🌈🌈💰💰💰

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