Berkshire Hathaway Sells $177 Billion Stock Amid Buffett Retirement Plans

Warren Buffett has long criticized the efficient market hypothesis (EMH), arguing that markets are not always efficient and that savvy investors can outperform by valuing businesses carefully rather than relying on market prices alone. Despite this, he recommends retail investors primarily use index funds, which align with EMH principles, highlighting a nuanced view where he acknowledges market efficiency but emphasizes the importance of disciplined analysis. Buffett’s recent investment moves, as Berkshire Hathaway prepares for his retirement, show a steady approach with large holdings in companies like Apple, American Express, and Bank of America, though he has been trimming some positions and holding a significant cash reserve due to concerns over elevated market valuations. Berkshire Hathaway has sold $177 billion in stocks over the last 11 quarters, signaling Buffett's caution amid high market prices, which historically precede weaker returns. Among Berkshire’s holdings, Coca-Cola remains a favored long-term stock, valued for its consistent dividend growth and market resilience, fitting Buffett’s focus on durable businesses and reliable income. Overall, Buffett’s strategy combines a value investing foundation with pragmatic portfolio management, balancing risk and opportunity in a complex market environment.