Warren Buffett has sold more stocks than he bought in 12 consecutive quarters – a record set during his time at Berkshire Hathaway. At the same time, the cash holdings are growing.
• Warren Buffett has been a net seller of stocks for twelve consecutive quarters
• Berkshire Hathaway’s cash holdings hit a record high of over $381 billion
• Despite the sales, Berkshire still holds a portfolio of over $300 billion
Record high cash holdings of over $381 billion
As shown in Berkshire Hathaway’s quarterly report dated November 1, 2025, the conglomerate’s cash holdings have grown to a new record of $381.7 billion. The majority of it is invested in short-term US government bonds. This marks the highest level in the company’s history and underlines that the legendary investor currently sees few attractive buying opportunities in the market.
Warren Buffett wrote in one of his letters to shareholders that often nothing seems convincing and only very rarely do opportunities arise where one is “knee-deep in opportunities.” As noted in a December 7, 2025 report by The Motley Fool, the 12-quarter selling streak is the longest since Buffett took over as Berkshire Hathaway. Still, the company’s portfolio still includes more than 40 stocks with a total value of over $300 billion, including long-standing holdings like American Express and Coca-Cola.
Valuation level at historic high
A possible reason for Buffett’s reluctance is the current valuation level of the market. The S&P 500’s so-called Shiller P/E ratio, which compares stock prices to inflation-adjusted earnings over the past decade, recently reached 40 – one of the highest levels in history. As The Motley Fool reports, this level has only been reached once since the inception of the S&P 500 in its current form.
In the past, periods in which Berkshire’s cash holdings rose sharply were often followed by market corrections. This happened around the beginning of 2016 and again in 2017. In both cases, the Shiller P/E ratio was elevated before the declines, suggesting that high valuations may have been one of the triggers. Historically, however, such declines have tended to be short-term, with each previous decline ultimately leading to a recovery and further gains.
No need to panic – selective buying continues
Despite his caution, Buffett doesn’t recommend panic. According to The Motley Fool, just because Buffett is currently selling more on balance than he is buying doesn’t mean he’s giving up buying stocks altogether. He continues to buy selectively – but only stocks with attractive valuations relative to their growth prospects. He has followed this approach unchanged for decades.
Buffett once used a baseball metaphor: The stock market is a game without called strikes – you don’t have to swing at every throw, you can wait for the right pitch. The Motley Fool derives three recommendations for investors from this: stay calm and don’t panic, build up cash reserves in order to be able to take advantage of cheaper prices, and only buy selectively if your own investment criteria are met. At the end of 2025, Buffett will hand over his position as CEO to Greg Abel, but will remain active as chairman of Berkshire Hathaway.
D. Maier / editorial team finanzen.net
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