Warren Buffett Sells Bank Stocks But Why ? Goldman Sachs & JPMorgan Chase Stock
Warren Buffett Sold Billion Dollar Stakes In Goldman Sacks & JPMorgan Chase, Here Is Why!
During this stock market crash the Oracle of Omaha has not been hesitant on selling out of stocks he doesn't see fit for decent future returns. So not only did Warren Buffett sell some bank stocks, he bought some as well but lets start with why he sold GS & JPM stock!
For The Same Reasons Warren Buffett Sold His Airline Stocks We Can Presume He Is Selling His Bank Stocks!
Let's start by taking a look at Goldman Sacks balance sheet, the first thing we can notice is net revenue's are down incredible for the first quarter 2020 compared to 2019
This is a clear sign of pain now lets compare this the second bank stock he sold JPMorgan Chase
We Can These Bank Stocks Half Lost More Then Half Of There Earnings during The First Quarter Now Lets Compare It To Warren Buffets New Bank Stock PNC Financial Services!
We can see PNC Financial Services has only lost 1.02$ Per share or 1/3 of there earnings compared to warren JPMorgan Chase that lost more then 2/3 of its earnings!
In conclusion Warren Buffett is taking this stock market crash cautiously especially with financial stocks!
with due reasoning it is clear he trying to protect capital from in the near term from major hits these stocks are taking! If you want to learn more about stock market investing consider passive income educator