Warren Buffett Trims Goldman, Wal-Mart Investments

The transcript discusses Warren Buffett's decision to trim stakes to raise cash for acquiring Precision Castparts, despite Berkshire Hathaway's substantial cash reserves. Analysts speculate on the reasons behind this move, noting its potential impact on stock prices. The discussion also covers Standard and Poor's review of Berkshire's credit rating due to the acquisition. Buffett's investment philosophy is explored, highlighting his flexibility in stock holdings. Additionally, Berkshire's new major shareholding in AT&T, resulting from the DIRECTV merger, is mentioned.

Why did Warren Buffett decide to trim his stakes in certain companies?

• To increase his holdings in Walmart and Goldman Sachs

• To diversify his investment portfolio

• To gather cash for a major acquisition

• To reduce his overall investment risk

What was the initial market reaction to Buffett's decision to sell some of his holdings?

• Goldman Sachs stock went down, Walmart stock went up

• Goldman Sachs stock went up, Walmart stock went down

• Both Walmart and Goldman Sachs stocks went up

• Both Walmart and Goldman Sachs stocks went down

What action did Standard and Poor's take in response to Berkshire Hathaway's acquisition of Precision Castparts?

• Put Berkshire Hathaway on credit watch for a downgrade

• Issued a warning about potential stock volatility

• Recommended buying more Berkshire Hathaway stocks

• Upgraded Berkshire Hathaway's credit rating

How does Warren Buffett's approach to holding stocks differ from his approach to buying businesses?

• He is flexible with stocks but intends to hold businesses forever

• He sells both stocks and businesses frequently

• He holds both stocks and businesses for a short time

• He holds stocks forever but sells businesses quickly

What was the result of the merger between DIRECTV and AT&T for Berkshire Hathaway?

• Berkshire Hathaway became a major shareholder in AT&T

• Berkshire Hathaway sold all its shares in AT&T

• Berkshire Hathaway became a major shareholder in DIRECTV

• Berkshire Hathaway reduced its holdings in both companies