Warren Buffett’s $100 Billion Stock Sell-Off: What Does He Know That We Don’t?

Warren Buffett has offloaded an astonishing $97 billion in stock during the first half of 2024. That’s right—nearly $100 billion sold as the US stock market reaches record highs. If you’re not paying attention, you could be at serious financial risk. Though Buffett often advises against timing the market, his recent actions tell a different story. Check out this chart: the gray bars show Berkshire Hathaway’s growing cash reserves, while the orange line tracks the S&P 500 index. Historically, Buffett has built up massive cash positions before market downturns. Before the dot-com crash in the early 2000s, Buffett increased Berkshire’s cash by 10x, later using it to buy stocks at bargain prices. Similarly, in the lead-up to the 2008 Financial Crisis, he watched as the stock market surged, only to see it crash by 50%. Once again, Buffett’s cash was ready to pounce on undervalued opportunities. Today, his cash reserves are at an all-time high—$276 billion. This has alarmed many, as it suggests Buffett believes the market is dangerously overheated. Since 2022, Berkshire’s cash pile has nearly tripled, growing from $100 billion to almost $300 billion. What’s especially concerning is the speed at which Buffett is hoarding cash compared to the past, when cash would accumulate more slowly as profits rolled in from Berkshire’s businesses. But this time is different. After studying Buffett’s career, I’ve never seen him sell this much stock in such a short period. What’s even more surprising is that Buffett is selling shares in companies he once vowed to hold forever. Take Apple, for example. He sold a staggering $90 billion in Apple stock during the first half of 2024—despite previously considering Apple a permanent fixture in his portfolio.