Warren Buffett is doing something that makes most retail investors sweat. He is sitting on a mountain of cash so large it could literally buy almost any company in the S&P 500 outright. By the end of 2025, Berkshire Hathaway’s cash hoard hit a staggering $381.7 billion.
He’s been a net seller of stocks for twelve consecutive quarters. Let that sink in for a second. While the rest of the world was chasing the AI boom and watching the S&P 500 notch record highs, the most famous investor in history was quietly hitting the "sell" button.
The Great Apple Retreat and the Bank of America Exit
If you look at the 13F filings from late 2024 and throughout 2025, the trend is impossible to ignore. Warren Buffett selling stock isn't just a minor portfolio rebalancing; it's a strategic retreat from some of his most iconic winners.
The biggest shocker? Apple.
For years, Buffett called Apple "the best business in the world." Yet, between 2024 and 2025, he chopped the position down by roughly 73%. He didn't do it because the iPhone suddenly stopped being cool. He did it because the valuation reached a point where even the Oracle couldn't justify the math. Apple was trading at nearly 34 times forward earnings—a far cry from the "wonderful company at a fair price" mantra that built the Berkshire empire.
Then there’s Bank of America. Buffett started hacking away at that stake in mid-2024 and kept going. By the third quarter of 2025, he had trimmed the position by over 40% from its peak.
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Why the sudden rush to the exits?
It isn't just about the stock prices being too high. Buffett is a student of history and a realist about the taxman. During the 2024 annual meeting, he dropped a massive hint: he expects corporate tax rates to go up eventually to help close the U.S. budget deficit.
Basically, he’s locking in profits at a 21% federal rate now because he suspects he might have to pay 28% or 35% later. It’s a cold, calculated move. Why pay more to the government tomorrow if you can pay less today?
The $382 Billion Question
So, where is all that money going? Honestly, it’s mostly going into U.S. Treasury bills.
As of late 2025, Berkshire held over $305 billion in short-term T-bills. While the stock market was volatile, Buffett was earning a risk-free 3.5% to 5% yield. That's about $11 billion to $20 billion a year in interest just for sitting still.
He’s waiting.
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He’s waiting for what he calls "fat pitches." In the past, Buffett has always been the one with the checkbook when the world is on fire. During the 2008 financial crisis, he was the lender of last resort. By building this record cash pile, he is positioning Berkshire to be the only buyer in the room when the next market crash happens.
The Ulta Beauty "Mistake"
Even the greats mess up. In late 2024, Berkshire bought a small stake in Ulta Beauty, only to dump the entire position just months later. It was a rare "quick hook."
Interestingly, Ulta stock went on a tear in 2025, rising 40% after Buffett sold. He admitted in his 2024 letter that "thumb-sucking"—delaying the correction of a mistake—is a cardinal sin. He saw something he didn't like and he got out, even if it meant missing a rally. That's discipline.
A New Era: The Greg Abel Transition
2026 marks a massive turning point. Warren Buffett officially stepped down as CEO at the end of 2025, handing the keys to Greg Abel.
While Buffett remains Chairman, the day-to-day capital allocation is now Abel’s problem. This transition is likely another reason for the massive cash pile. Buffett wanted to leave his successor with a "loaded weapon"—the maximum amount of flexibility to make his own mark.
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Abel is known for his expertise in energy and infrastructure. We’re already seeing hints of this shift. While Berkshire was selling Apple, it was buying Occidental Petroleum and its chemical subsidiary, OxyChem.
What You Should Do When Buffett Sells
It’s easy to panic when you see headlines about Warren Buffett selling stock. You think, "Does he know something I don't?"
The truth is, Buffett is playing a different game than you are. He manages hundreds of billions. He has to worry about corporate tax cycles and multi-billion dollar acquisitions.
However, there are a few "Oracle-approved" takeaways for the average investor:
- Cash isn't trash: When the market feels expensive (like the 22+ P/E ratios we saw in 2025), there is no shame in holding some "dry powder."
- Valuation matters: Even a great company like Apple can be a bad investment if you pay too much for it.
- Tax planning is an investment strategy: Locking in gains when rates are low is just smart math.
- Patience is a superpower: You don't have to swing at every pitch. You can wait for the market to give you a bargain.
Actionable Next Steps
- Audit your winners: Look at your portfolio. If a stock you bought at a 15 P/E is now trading at 35, ask yourself if the growth still justifies the price.
- Check your cash reserves: You don't need $382 billion, but having enough to buy during a 10% or 20% correction is how wealth is actually made.
- Watch the 13F filings: The next round of SEC filings will show exactly how Greg Abel is deploying that cash. Look for moves in the energy and infrastructure sectors—that’s likely where the next Berkshire era is headed.
Warren Buffett didn't get rich by following the crowd. He got rich by being the person the crowd turns to when they're in trouble. By selling now, he’s just making sure he has the biggest wallet in the room for when the music eventually stops.