Much to see about nothing

Warren Buffett’s cash mountain doesn’t tell us much about where markets or the economy will go.

Warren Buffett commands more attention than any investor in history. Punters scrutinise his every move. When he sips from his Coke can, his disciples try to figure out what the flavour indicates. When he shifts in his chair to break wind, portfolio managers wonder what it means for them. The Oracle of Omaha, as the media calls him, has become a cult-like figure.

His disciples lost their minds when Berkshire Hathaway, his investment firm, announced it cut its Apple position in half to $84bn earlier this month. It was a huge move. Some figured it was the Oracle signalling that it was the end for China. Others thought he was preparing for a huge acquisition. After all, the firm’s cash position ballooned to $277bn last quarter. 

In a filing this week, the firm announced it also sold more Bank of America shares. Mr Buffett has trimmed this position by $5.4bn since July. “Tell me there is a banking crisis coming without telling me there’s a banking crisis coming,” posited one social media use…