Marina Lyubimova
● Legendary investor Warren Buffett's Berkshire Hathaway just hit a historic milestone — 12 consecutive quarters of selling more stocks than buying, the longest streak in the company's history. According to StockMarket.News, Berkshire has offloaded roughly $184 billion in equities over three years, flipping from a major buyer to one of the world's largest sellers.
● The message is clear: Buffett thinks stocks are wildly overpriced. Even with nearly $382 billion sitting in cash, Berkshire hasn't bought back a single share of its own stock for five quarters running. As StockMarket.News notes, this reflects Buffett's signature discipline — Berkshire shares are trading at a 72% premium to book value, way above his buyback threshold. When someone famous for hunting bargains won't even buy his own company's stock, that's a pretty loud signal that the market's too hot.
● The bigger picture backs him up. The Buffett Indicator — total U.S. stock market value compared to GDP — has shot up to around 217%, well above historical averages. Buffett warned back in 2001 that when this metric hits 200%, "you are playing with fire." True to his word, Berkshire sold $6.1 billion in stocks last quarter, cutting positions in Apple and Bank of America.
● Berkshire's fundamentals are still rock-solid, with operating earnings up 34% year over year, building a massive war chest for future deals. But right now, Buffett's stance is crystal clear: strong performance doesn't matter if prices already assume everything will be perfect. As StockMarket.News puts it, Buffett is waiting patiently for the "fat pitch" — that rare moment when prices actually offer real long-term value.
Marina Lyubimova
