Berkshire Hathaway CEO Warren Buffett has been a net seller of stocks for 12 consecutive quarters, according to a recent analysis. This consistent selling significantly built up the company's cash reserves. Buffett prepares to retire at the end of the year.
Over the past three years, Berkshire Hathaway sold over $183 billion more in stocks than it purchased.
Market watchers interpret the long-term trend as a sign that Buffett finds current equity valuations unattractive. The move suggests caution and aligns with his famous advice to be fearful when others are greedy. Analysts suggest he is waiting for more favorable market conditions or a significant price dislocation before deploying the capital.