Warren Buffett's Net Selling Streak Hits Three Years as Berkshire Prepares for Leadership Change

Warren Buffett's Net Selling Streak Continues as Berkshire Prepares for Leadership Transition Warren Buffett, the legendary investor, marked his third consecutive year as a net seller of stocks, according to Berkshire Hathaway's third-quarter earnings report. The conglomerate sold $12.5 billion of stock in the latest period, while buying $6.4 billion, resulting in a net sale of $6.1 billion. This marks the 12th consecutive quarter of net selling, a trend that has been observed since 2020. The company's cash hoard swelled to a fresh record high of $382 billion, as operating earnings jumped 34% year-over-year. In the third quarter, Berkshire's stock portfolio shrank, with the company shifting its investments into Treasury debt. However, with short-term rates falling recently, the company's third-quarter earnings were boosted by a $1.4 billion gain from its Treasury holdings. Berkshire's decision to hold off on buying back stock for the fifth straight quarter has also contributed to its growing cash reserves. The market impact of Berkshire's net selling streak has been significant, with the company's stock price experiencing a modest decline in recent months. However, the company's cash reserves and strong operating earnings have maintained investor confidence in the conglomerate. Berkshire's stock price has historically been a barometer of the overall market, and its performance has a significant impact on the broader market. Berkshire Hathaway is a multinational conglomerate with a diverse portfolio of businesses, including insurance, retail, and manufacturing. The company's leadership is set to undergo a significant transition, with Warren Buffett poised to step down as CEO by the end of the year. The company's new CEO, Greg Abel, is expected to take charge and lead the company into a new era of growth and expansion. The future outlook for Berkshire Hathaway remains uncertain, with the company's leadership transition and ongoing net selling streak creating uncertainty among investors. However, the company's strong cash reserves and diverse portfolio of businesses position it well for long-term growth and success. As the company prepares for its leadership transition, investors will be closely watching its future moves and how they impact the broader market.