Warren Buffett’s Berkshire Hathaway has sold $184 billion in stocks over the past four years, despite having a record amount of cash on hand. This suggests a struggle to find attractive buying opportunities in the stock market, possibly due to the S&P 500’s high CAPE ratio.

Buffett took over Berkshire Hathaway in 1965, turning the textile operation into a successful conglomerate. The company’s Class A shares have soared over 6,100,000%, outperforming the S&P 500 by a wide margin. Buffett’s impending retirement in 2025 raises concerns about a potential stock market decline in 2026.

Despite historically being a net buyer of stocks, Buffett’s Berkshire Hathaway has been selling more than buying since 2022. With a record $382 billion in cash reserves, the lack of buying opportunities due to the stock market’s high valuation may be the reason for the sales. The S&P 500’s CAPE ratio is currently at a historic high, indicating a potential market decline in the future.

The S&P 500’s CAPE ratio is at its highest level since 2000, signaling an expensive market. Historical data suggests that when the CAPE ratio exceeds 39, the index tends to decline over the next year. Investors may want to review their portfolios and consider selling stocks with a potential for drawdowns in the coming year.

Read more at Yahoo Finance: Warren Buffett Retires With a $184 Billion Warning to Investors. History Says the Stock Market Will Do This in 2026.