Note: Despite the "Sage of Omaha"'s controversial "Buy American, I am" encouraging Americans to support equity markets, the fact is that he hasn't been buying much equities since (only $1.3 billion according to Mario Gabelli), and even sold some positions recently.
I don't share the views that most of the recent liquidations from Berkshire's Portfolio were meant to be rotated into "banks", simply because Berkshire balance sheet remains substantially cash rich. In short, you don't need to rotate when you have so much available or spare cash. Liquidity isn't the issue. Mr. Buffett sold parts of his flagship's holdings period. Yet, most of the recent positions have been into banks' "preferred stock" which is a fixed income investment derived from recent "special" deals during the meltdown last September.
As an Obama supporter, the folksy Mr. Buffett appears to have been transformed into a sweet talking politico or had been used as a political instrument.
Nonetheless, on the positive side, there are many amusing but worthwhile investing lessons from his annual shareholder's letter. Although as usual, you'd be disarmed by his candor to his shareholders.
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