Warren Buffett Sold $187 Billion in Stocks Before Retirement

Warren Buffett acted as a net seller of equities for 13 consecutive quarters leading up to his retirement as CEO of Berkshire Hathaway on December 31. He offloaded approximately $187 billion in stocks during a period when the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite were reaching new highs.

Buffett based these divestments on the market-cap-to-GDP ratio, a valuation metric he describes as "probably the best single measure of where valuations stand at any given moment." This indicator reached an all-time high of 240.24% on August 12, 2026, which is roughly 170% above its 56-year average. The high valuation suggested that finding value had become difficult in a market driven by artificial intelligence.

Greg Abel has succeeded Buffett as the CEO of Berkshire Hathaway.