Core Insights - Warren Buffett is stepping down as CEO of Berkshire Hathaway, and his recent actions suggest he may be preparing for a potential stock market downturn [1][2] Group 1: Market Sentiment - The Buffett indicator, which measures total stock market capitalization to GDP, is currently at approximately 221%, indicating a potentially overheated market [4] - Berkshire Hathaway has been a net seller of stocks for 12 consecutive quarters, selling $12.5 billion in Q3 2025 while buying only $6.4 billion, suggesting Buffett anticipates market trouble [5] Group 2: Cash Position - As of September 30, 2025, Berkshire Hathaway holds a record-high cash position of roughly $382 billion, the largest cash stockpile in its history and the highest for any U.S. publicly traded company [6][8] Group 3: Stock Buybacks - Buffett has not repurchased any Berkshire shares for five consecutive quarters, despite having the capacity to do so, indicating a cautious approach towards the company's stock [10][11] Group 4: Investment Strategy - Despite being a net seller, Berkshire's portfolio remains heavily invested in stocks, with approximately $314 billion in equities as of October 31, 2025, and Buffett continues to buy stocks that meet his stringent criteria [12][13]
3 Signs Warren Buffett Might Be Bracing for a Stock Market Storm