Buffett's $15.5B Fire Sale: Genius Move or Market Timing Trap?

Berkshire just hit pause on growth. Buffett dumped a combined $15.5B from two mega holdings (Apple & Bank of America) last quarter, while cash reserves hit a record $382B — roughly 30% of total portfolio. That’s wild considering he’s been preaching “don’t time the market” for decades.

Zero share buybacks this quarter. Stocks near all-time highs. The math doesn’t add up unless Buffett is basically saying: “The deals aren’t there anymore.”

Here’s the thing though — he’s not sitting completely idle. He picked up more Chubb stock recently. So this isn’t classic panic selling. It’s more like: “I’ll buy when prices make sense, but I won’t overpay just to stay invested.”

The takeaway for retail investors? You don’t need to ape Buffett’s exact moves, but his logic applies: Don’t force investments you don’t believe in. If valuations look stretched and you’re not confident in a multi-year horizon, holding dry powder (30% cash) suddenly doesn’t sound crazy anymore.

The irony: A guy famous for long-term thinking is now sitting on the biggest cash pile in Berkshire’s history. Make of that what you will.