Warren Buffett selling stocks, not buying, due to overvaluation

From Yahoo Finance: 2025-05-30 03:06:00

Warren Buffett’s Berkshire Hathaway has sold $174.4 billion in stocks for 10 straight quarters, without buying shares of his favorite stock for three consecutive quarters, focusing on good deals. Buffett’s strategy of waiting for stock valuations to improve has benefited Berkshire’s shareholders over the years.

Despite net selling activity, Buffett’s belief in the U.S. economy remains strong, as economic downturns are temporary. Berkshire Hathaway’s quarterly cash flow statements reveal detailed selling and buying activities. Buffett’s warning to Wall Street about pricey stock valuations is reinforced by his recent lack of share repurchases.

Buffett’s pause in buying back Berkshire Hathaway stock indicates overvaluation, as the S&P 500 and Shiller P/E ratio reach historic highs. Buffett’s investment philosophy prioritizes getting a good deal, demonstrated by his caution in purchasing stocks. Despite warnings, Buffett’s patience and value investing approach have proven profitable over time.

Buffett’s caution reflects the current lack of value on Wall Street, with high stock valuations. His recent focus on Sirius XM, a value stock with favorable risk-reward potential, highlights his investment approach. Despite warnings, Buffett’s long-term optimism for America and stocks remains, but his focus on good deals persists.

Read more: This Is Warren Buffett’s Biggest Warning to Wall Street Yet