Warren Buffett's recent stock sales could indicate a forthcoming downturn in the market, according to market strategist Paul Dietrich. Buffett has a history of selling stocks ahead of bear markets or recessions, as he has demonstrated over multiple downturns. His company, Berkshire Hathaway, has sold $212 billion in shares while only purchasing $34.5 billion, leading to a significant cash reserve. This behavior includes halting stock buybacks, which contributed to Berkshire's cash pile tripling to $344 billion in three years. Buffett's past actions show a pattern of building cash in anticipation of market declines.
Warren Buffett may be cashing in stocks because he sees a storm on the horizon - and could buy them back once prices tumble, a senior market strategist says.
Buffett's Berkshire Hathaway has been a net seller of stocks for 11 straight quarters, even though the market has soared to new highs in that period.
The pause in stock buybacks marks a big change from Berkshire's peak repurchases of over $20 billion in both 2020 and 2021.
Buffett has jettisoned stocks and gone to cash ahead of past downturns, signaling he sees similar patterns emerging now.
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