Buffett is dumping $15.5 billion Heavy Position stocks; what signal is he sending?

Buffett's recent moves are quite interesting.

Berkshire Hathaway's cash reserves have just exceeded a historic high of $382 billion, accounting for more than one-third of the company's total market value. Even more outrageous is that they疯狂抛售了苹果和美国银行这两大核心重仓, with a total amount reaching $15.5 billion in the last quarter. At the same time, the total amount of stock repurchases for the entire quarter was zero.

At first glance, this operation is a bit scary—you're saying Buffett has always been criticizing retail investors for chasing highs and killing lows, timing the market, and what happens? He himself has significantly reduced his positions, hoarded cash, and paused buybacks. Is he really going to “buy the dip” by stepping back first this time?

But this may not really be about “timing”

Upon careful consideration, Buffett's logic is actually very simple: I only buy when there are bargains. If there aren't enough bargains, I resolutely do nothing.

He has recently been accumulating shares in Chubb Limited, indicating that he hasn't completely withdrawn from the market. The problem is, now the streets are filled with overpriced stocks, and he really can't find many worthwhile opportunities to invest in. Rather than forcing himself to buy overvalued junk, it's better to hold cash and wait.

Moreover, from another perspective, this may not be a bad thing. The stock market is currently hovering near historical highs, and the valuations of most leading companies are quite absurd. In this situation, maintaining cash reserves and reducing unnecessary risks sounds more rational.

What should you do?

Warren Buffett's approach offers an interesting insight: there's no need to predict the market top, but don't force investments either.

If you still have some spare money and a long enough time horizon (to withstand the potential adjustments in 2026), continuing to invest regularly shouldn't be a problem. But if you can't find any particularly cheap opportunities or you might need the money in the near future, there's no need to force yourself to invest. Follow Buffett's approach - maintain a cash ratio of about 30% and let your bullets fly for a while.

After all, being greedy in the end often just means being greedy.