Buffett Is Cashing Out: Berkshire Hathaway Unloads Another $36 Billion In Stocks Into Market Mania

Summary

• Warren Buffett has raised over $158 billion in cash/cash equivalents this year and has continued to sell stocks in Q4.
• Recent filings show that Berkshire sold another $36 billion in stocks in Q3 and plowed operating earnings into short-term Treasuries as well.
• The most popular theories for why Buffett is selling include overvaluation in mega-cap stocks, a recession warning, or stockpiling money for potential acquisitions. Near-term market overvaluation is the most convincing.
• Berkshire also didn't buy back a dime in stock in Q3, mirroring commentary by JPMorgan CEO Jamie Dimon on inflated market valuations.
• While Buffett previously "suggested" in May that he might be selling to save on future taxes, there is little evidence to support this.

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Stocks have roared to fresh all-time highs, but the world's most famous investor is selling into the rally. In fact, Warren Buffett's Berkshire Hathaway (NYSE:BRK.B) (NYSE:BRK.A) (NEOE:BRK:CA) has raised $158 billion in cash since

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BRK.B either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.