Buffett Is Holding Cash, Buying Pizza, and Warning Us Quietly—Is a Recession Brewing Again?
The stock market has been turbulent lately. Economic data is mixed, and while many stocks have fallen, Berkshire Hathaway (BRK.B) just hit an all-time high. That makes Warren Buffett’s latest investment moves even more revealing.
Buffett’s Cash Strategy: Waiting for the Right Pitch
Berkshire Hathaway is now holding more than half its assets in cash—a record level. Buffett isn’t rushing into anything. He once said, “We don’t have to swing at every pitch.” Right now, he appears to believe that most stocks are overpriced and that better opportunities will come later. Holding cash gives him the flexibility to move when the time is right.
Selling Banks, Buying Pizza
One of Buffett’s biggest recent moves was cutting financial stocks, particularly Bank of America (BAC) and Citigroup (C). This likely reflects concern about the health of the banking sector. According to CNBC, nearly half of America’s largest banks received poor risk ratings as of early 2024.
At the same time, Buffett increased his stake in consumer staples—companies that perform well even in recessions. Notably, he bought into Domino’s Pizza (DPZ) and Constellation Brands (GPMCF), a major alcohol company. These purchases aren’t random. In tough times, people cut back on luxuries—but they still order pizza and buy beer.
Why Domino’s?
Back in the 2008 financial crisis, while most stocks collapsed, Domino’s stock actually rose. Affordable food delivered to your door? That’s a recession-proof business model. Buffett seems to be betting that if the economy slows down again, Domino’s will outperform.
He’s also aligning his strategy with changing consumer behavior. As people stay home more—streaming shows instead of going out—they're also more likely to order affordable food. His portfolio reflects this shift in how people spend money when uncertainty rises.
Signs of a Coming Crisis?
With recent events like the collapse of Silicon Valley Bank (SVB) and global instability, Buffett’s reduced exposure to banks may signal that he sees potential trouble ahead. His actions are quiet, but clear: prioritize safety, liquidity, and resilience.
My Investment Strategy
In response, I’m focusing on:
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Domino’s Pizza (DPZ) – Everyday affordability
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Occidental Petroleum (OXY) – Strong during inflation
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Coca-Cola (KO) – A timeless brand
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Modelo (GPMCF) – Alcohol remains steady
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Berkshire Hathaway (BRK.B) – The simplest way to follow Buffett
I’m building a long-term position in BRK.B to reflect Buffett’s macro view without guessing individual stocks.
What Should Individual Investors Do?
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Hold Cash Reserves – Be ready to buy when prices dip
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Buy Recession-Resilient Stocks – Food, beverages, and healthcare
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Manage Bank Risk – Diversify your deposits
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Think Long-Term – Avoid emotional trading
Buffett isn’t betting on a boom—he’s preparing for bumps. That’s a strategy worth watching.
What about you? Are you adjusting your portfolio in light of Buffett’s recent moves?
Let’s discuss in the comments.
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