Berkshire Hathaway's Secret Portfolio Sells Stocks Amid High Valuations

Investors are cautious as Warren Buffett's Berkshire Hathaway signals a bearish trend. The company has been a net seller of stocks, which suggests potential changes in market dynamics.

Date: 07-03-2025

AI Rating: 4

Berkshire Hathaway's Market Activity
According to the report, Berkshire Hathaway, under the stewardship of Warren Buffett, has become a net seller of equities over the last nine quarters. Specifically, their portfolio has witnessed over $173 billion in net-equity sales since October 2022. This trend indicates a cautious approach from one of the most respected investors on Wall Street.

The report mentions how Buffett's "secret" portfolio, managed by New England Asset Management, had its value decrease significantly from $5.43 billion to $585.5 million, reflecting broader market conditions and precise selling strategies. The current market sentiment appears influenced by the high valuations characterized by the all-time high of the Buffett Indicator, currently exceeding 200%, which historically signals overvaluation in the market.

Additionally, the Shiller P/E Ratio for the S&P 500, a measure of market valuations based on average earnings, has reached 36.85, close to its historical high. This raises concerns about potential corrections as previous instances of a Shiller P/E over 30 led to a loss of at least 20% in market values.

Buffett and his team are careful value investors, and their strategy indicates a strong apprehension about current market prices. They have historically waited for favorable buying opportunities, which could mean that different stocks might soon experience continued volatility.

Stocks: BRK.A BRK.B AAPL BAC