Elon Musk Claims Warren Buffett Is 'Clearly Bracing for a Market Correction' Following Berkshire Hathaway's Sale of Nearly Half Its Apple Stock

Elon Musk, CEO of Tesla Inc. (NASDAQ:TSLA) and SpaceX, has weighed in on Warren Buffett-led Berkshire Hathaway Inc.’s (NYSE:BRK.A) decision to sell roughly half of its Apple Inc. (NASDAQ:AAPL) holdings.

What Happened: Over the weekend, a user on X (formerly Twitter) reported that Berkshire Hathaway had amassed a cash reserve of nearly $277 billion.

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A user humorously suggested that Buffett could make bold, all-in investments with his cash reserve, potentially acquiring companies like Netflix, Salesforce, Toyota, Adobe, and Hermes.

In response, Musk remarked, “Buffett is clearly anticipating a market correction or simply doesn’t see better investment options than Treasury bills.”

The tech mogul also criticized the Federal Reserve for not reducing interest rates, arguing that current rates are excessively high.

Trending: Elon Musk and Jeff Bezos are optimistic about one city poised to rival New York as the new financial capital of the US. Investing in its thriving real estate market has never been more accessible.

“The Fed needs to lower rates. They’ve been foolish not to have done so already,” Musk stated.

Why It Matters: Circuit breakers were activated for Japan's TOPIX index, halting trading after a more than 6% drop, prompting urgent stabilization measures on Sunday night.

The broader Asia-Pacific region experienced declines, with the MSCI AC Asia Pacific Index falling by 2%, Japan's Nikkei 225 dropping 5.60%, and South Korea's KOSPI index decreasing by 4%.

This trend continued from Friday, when Japan's Nikkei 225 and TOPIX indices fell by over 5% and 6%, respectively. In the U.S., markets also faced significant losses on Friday following a weaker-than-expected July jobs report. The Nasdaq plunged more than 10%, while the S&P 500 and Dow Jones Industrial Average decreased by 5.7% and 3.9%, respectively. At the time of writing, futures for the Dow Jones were down 0.81%, and futures for the S&P 500 and Nasdaq-100 fell by 1.43% and 2.4%, respectively.

Berkshire Hathaway reported a decline in second-quarter net earnings year-over-year, attributed to a drop in investment gains, despite an increase in operating earnings. The company continued to reduce its stake in Apple during this period.

Specifically, net earnings fell by 15.50%, from $35.91 billion to $30.35 billion. However, operating earnings—reflecting income from Berkshire’s portfolio entities—rose by 15.48% to $11.60 billion. Investment portfolio gains saw a significant drop of 27.52%, falling to $18.75 billion.

Berkshire’s growing cash reserves have spurred speculation on social media about potential investments, with some Tesla enthusiasts hoping Buffett might invest in the electric vehicle company's stock.

Read Next:

*This city tops Zillow's 2024 Home Value Forecast — it's no surprise, given the 75% growth in  millionaires there over the past decade.

*Would you invest in a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends?

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This article, "Elon Musk Says Warren Buffett Is 'Clearly Expecting A Correction' After Berkshire Sold Nearly Half Of Its Apple Stock," originally appeared on Benzinga.com.

What Happened: Over the weekend, a user on X (formerly Twitter) reported that Berkshire Hathaway had amassed a cash reserve of nearly $277 billion.

Don’t Miss:

*A billion-dollar investment strategy with entry points as low as $10—seize the opportunity to join the next major real estate boom today.

*With the ongoing EV revolution, there’s a substantial investment chance in previously overlooked low-income communities starting at just $500.

*Don’t miss the next Nvidia—invest in the future of AI for only $10.

A user humorously suggested that Buffett could make bold, all-in investments with his cash reserve, potentially acquiring companies like Netflix, Salesforce, Toyota, Adobe, and Hermes.

In response, Musk remarked, “Buffett is clearly anticipating a market correction or simply doesn’t see better investment options than Treasury bills.”

The tech mogul also criticized the Federal Reserve for not reducing interest rates, arguing that current rates are excessively high.

Trending: Elon Musk and Jeff Bezos are optimistic about one city poised to rival New York as the new financial capital of the US. Investing in its thriving real estate market has never been more accessible.

“The Fed needs to lower rates. They’ve been foolish not to have done so already,” Musk stated.

Why It Matters: Circuit breakers were activated for Japan's TOPIX index, halting trading after a more than 6% drop, prompting urgent stabilization measures on Sunday night.

The broader Asia-Pacific region experienced declines, with the MSCI AC Asia Pacific Index falling by 2%, Japan's Nikkei 225 dropping 5.60%, and South Korea's KOSPI index decreasing by 4%.

This trend continued from Friday, when Japan's Nikkei 225 and TOPIX indices fell by over 5% and 6%, respectively. In the U.S., markets also faced significant losses on Friday following a weaker-than-expected July jobs report. The Nasdaq plunged more than 10%, while the S&P 500 and Dow Jones Industrial Average decreased by 5.7% and 3.9%, respectively. At the time of writing, futures for the Dow Jones were down 0.81%, and futures for the S&P 500 and Nasdaq-100 fell by 1.43% and 2.4%, respectively.

Berkshire Hathaway reported a decline in second-quarter net earnings year-over-year, attributed to a drop in investment gains, despite an increase in operating earnings. The company continued to reduce its stake in Apple during this period.

Specifically, net earnings fell by 15.50%, from $35.91 billion to $30.35 billion. However, operating earnings—reflecting income from Berkshire’s portfolio entities—rose by 15.48% to $11.60 billion. Investment portfolio gains saw a significant drop of 27.52%, falling to $18.75 billion.

Berkshire’s growing cash reserves have spurred speculation on social media about potential investments, with some Tesla enthusiasts hoping Buffett might invest in the electric vehicle company's stock.

Read Next:

*This city tops Zillow's 2024 Home Value Forecast — it's no surprise, given the 75% growth in  millionaires there over the past decade.

*Would you invest in a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends?

"ACTIVE INVESTORS' SECRET WEAPON" Boost your stock market strategy with Benzinga Pro, the top tool for news and market insights: Start your 14-day trial now!

Get the latest stock analysis from Benzinga?

This article, "Elon Musk Says Warren Buffett Is 'Clearly Expecting A Correction' After Berkshire Sold Nearly Half Of Its Apple Stock," originally appeared on Benzinga.com.