TLDR
- Warren Buffett extended his net stock selling streak to 12 quarters, the longest in Berkshire Hathaway’s history under his leadership
- Berkshire Hathaway’s cash holdings climbed to $381-382 billion by Q3 2025, an all-time company record
- The S&P 500 Shiller CAPE ratio hit 40, matching the second-highest valuation level ever recorded for U.S. stocks
- Buffett will step down as Berkshire CEO at the end of 2025 after decades leading the company
- Despite ongoing sales, Berkshire maintains $300 billion in stock positions and added Alphabet and UnitedHealth Group shares
Warren Buffett has now sold more stocks than he purchased for 12 consecutive quarters at Berkshire Hathaway. The streak represents the longest period of net stock selling since Buffett took control of the investment company.
Berkshire Hathaway held between $381 billion and $382 billion in cash by the end of the third quarter in 2025. The cash reserve breaks all previous records for the company.
Buffett will exit his role as Berkshire Hathaway’s CEO when 2025 ends. The timing of his departure coincides with this extended period of reducing stock exposure.
The investor known as the “Oracle of Omaha” has not issued public statements explaining his selling activity. His historical comments about investing provide insight into his current approach.
Market Valuations Hit Rare Heights
The S&P 500 index traded at record levels throughout much of 2025. The index’s Shiller CAPE ratio climbed to 40 during this period.
The Shiller CAPE ratio compares current stock prices to inflation-adjusted earnings over ten years. A reading of 40 has only occurred once before in U.S. stock market history.
High CAPE ratio readings indicate stocks are expensive relative to the earnings companies generate. This metric suggests current market prices may be unsustainable over the long term.
Buffett wrote to Berkshire shareholders that attractive buying opportunities do not appear frequently. He stated that market conditions often make nothing look compelling for investment.
U.S. Treasury securities with short maturities currently pay yields exceeding 3.5%. These rates make cash holdings more productive than in previous low-interest-rate environments.
Selective Buying Continues Despite Sales
Berkshire Hathaway still owns over 40 different stock positions despite 12 quarters of net selling. The combined value of these investments totals more than $300 billion.
Long-term holdings like American Express and Coca-Cola remain in Berkshire’s portfolio. Buffett has owned these positions for decades and shows no signs of selling them.
Buffett purchased new shares during his selling streak. Berkshire initiated a position in Alphabet during the third quarter of 2025.
The company also bought UnitedHealth Group stock in the second quarter. These transactions demonstrate Buffett still finds certain stocks attractive at current prices.
Buffett’s Investment Approach Unchanged
Buffett evaluates stocks using the same criteria regardless of market conditions. He seeks companies with reasonable valuations compared to their growth prospects.
The investor previously compared stock selection to baseball. He noted that investors do not face called strikes and can wait indefinitely for good opportunities.
Buffett’s strategy involves maintaining conviction in his best ideas. He reduces or eliminates positions when his confidence in a stock decreases.
Berkshire’s large cash position enables quick action when market prices fall. The company can deploy billions of dollars rapidly when opportunities meet Buffett’s investment standards.
Buffett warned in past writings that stock returns cannot exceed business performance indefinitely. He cautioned that bull markets create conditions where stock prices disconnect from underlying business results.
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