Warren Buffett has sent shockwaves through Wall Street with the revelation that he has sold off an additional $6 billion in shares. This marks the third consecutive year that the billionaire investor has discreetly reduced his extensive portfolio.

The 95-year-old, often referred to as the ‘Oracle of Omaha,’ divested these shares through his Berkshire Hathaway enterprise during the three months leading up to September 30. This suggests that Buffett sees more advantage in selling than buying, as stock prices continue to climb to staggering heights.

Since 2022, Buffett has sold approximately $184 billion in shares. This substantial buildup of cash is sparking concerns that he may be preparing for a potential market downturn.

Berkshire Hathaway’s cash reserves have reached an all-time high of $382 billion, not including an additional $23 billion invested in short-term Treasury securities.

The iconic investor, who is set to step down as CEO by the end of the year, has remained largely inactive for several months. He has refrained from repurchasing Berkshire stock or engaging in major new investments despite the soaring markets.

Berkshire shares have slipped about 12 percent since Buffett announced his retirement in May, even as the S&P 500 has climbed nearly 20 percent, stoking concern that his exit and his caution could both spell trouble.

Buffett’s longtime deputy Greg Abel, 62, is due to take the reins in January — but investors worry that the timing of his mentor’s retreat from the market could be a sign that the old master sees storm clouds ahead.

‘He’s clearly finding more value in cash than in stocks,’ said one analyst. ‘That’s rarely a good signal.’

Investing legend Warren Buffett announced that he would be stepping down in May 

Buffett’s right-hand man Greg Abel will take the reins in January as his longtime mentor bows out 

Despite strong quarterly earnings — with profits jumping 34 percent to $13.5 billion, thanks to a rebound in its Geico insurance arm — Buffett’s decision to hoard cash and avoid new deals has overshadowed the good news.

Berkshire did clinch one major acquisition last month, agreeing to buy Occidental Petroleum’s petrochemicals division for $9.7 billion, but analysts noted the deal was led by Abel, not Buffett.

The billionaire’s pullback follows losses in Berkshire’s energy division, which took a $1.1 billion hit from California wildfires and added another $100 million in fire-related costs tied to its Oregon utility PacifiCorp.

Buffett has long been one of Apple’s largest shareholders, but he has trimmed that stake in recent years — and has not disclosed whether he cut further this quarter.

To many on Wall Street, Buffett’s growing pile of cash and steady retreat from the stock market look like a flashing yellow light.

‘He’s the ultimate market optimist,’ said one fund manager. ‘If even Warren Buffett is selling, it’s time to ask what he’s seeing that the rest of us aren’t.’

For investors, Buffett’s moves carry immense weight. 

His seal of approval often sends stocks soaring — and signals where one of history’s most successful investors sees opportunity. 

Berkshire is the parent company of insurance giant Geico, which helped power profits this quarter

Buffett also owns Duracell — the battery maker known for its copper-top design — through Berkshire Hathaway

Over the past year, even his smaller trades have moved markets. 

In February, Sirius XM’s shares jumped 12 percent after Buffett revealed he purchased $54million in stock – a tiny deal for him, which left him with a 35 percent stake. 

Meanwhile, his August acquisition of UnitedHealth stock helped the company stop a historic slip. 

It also works the other way, too: dialysis provider DaVita’s stock tumbled 11.1 percent after Buffett revealed he was offloading his stake in the company. 

Berkshire Hathaway, which owns dozens of companies including Geico, Duracell, and Dairy Queen, had largely been sitting on the sidelines in 2024 and this year, aside from small deals.

At the same time, he has also sold billions in Apple and Bank of America stock —leading to his cash reserve swelling to the highest percentage since 1990. 

Investors have questioned whether Buffett thought the market was overvalued.

He has long warned that the stock market should have a value that is near equivalent to the US’s economic production. 

Right now, Wall Street is worth more than twice the amount of money the US makes.