Warren Buffett may be cashing in stocks ahead of a storm, and could buy them back after it hits, top strategist says [View all]
The "Oracle of Omaha" has a "history of selling out of the stock market" when economic and financial indicators are "signaling a bear market or a recession is coming," Wedbush's chief investment strategist, Paul Dietrich, told Business Insider.
The investor's conglomerate offloaded $212 billion of shares while only buying $34.5 billion, meaning its net disposals exceeded $177 billion more than the market value of BlackRock or Boeing..
Buffett also halted stock buybacks for the last four quarters as he no longer saw Berkshire stock as cheap, Dietrich said. The pause marks a big change from Berkshire's peak repurchases of over $20 billion in both 2020 and 2021.
The Wall Street veteran recalled Buffett's famous advice to "be fearful when others are greedy, and be greedy when others are fearful," saying the Berkshire chief is preparing to pounce once valuations fall to attractive levels.
Dietrich said Buffett would use his cash pile "to eventually buy back Apple and the other shares he has sold but at a major discount after the current nose-bleed stock market highs eventually come back down to earth."
https://www.businessinsider.com/warren-buffett-stock-sales-cash-apple-dietrich-market-crash-recession-2025-8
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