Buffett Sells Stocks – Here Is What Prudent Investors Should Do Now; OPEC+ Changes Stance

Author: The Arora Report | November 03, 2025 11:13am

Buffett Sells Stocks

Please click here for a chart of Warren Buffett’s company Berkshire Hathaway Inc Class B (NYSE:BRK).

Note the following:

• This article is about the big picture, not an individual stock.  The chart of BRK.B is being used to illustrate the point.
• The chart shows BRK.B stock has pulled back from highs earlier this year.
• The chart shows BRK.B is in zone 2 (support).
• RSI on the chart shows BRK.B stock is neither overbought nor oversold.
• Warren Buffett is the most successful investor of our time. His company Berkshire Hathaway reported earnings.  Here are the details:
  • Berkshire Hathaway did not buy back any of its own stock.  A pattern that is continuing from May 2024.
  • Berkshire Hathaway's cash holdings have reached a new record $381B, up from $344B at the end of June.
  • Berkshire Hathaway bought $6.4B worth of equities in Q3.  However, the company also sold $12.4B worth of equities.
  • There are indications, but no formal confirmation, that Berkshire sold more Apple Inc (NASDAQ:AAPL) in Q3.
  • Berkshire Hathaway's total after tax earnings came at $30.8B, up 17% year-over-year.
  • Berkshire Hathaway has $305B of Treasuries on its balance sheet.
  • Warren Buffett is stepping down as CEO at the end of 2025.
• Here is what prudent investors need to think about:
  • Why was Buffett a net seller of stocks?
  • As BRK.B stock has come down, why did Buffett not buy his own stock?
  • Why is Buffett holding so much cash?
• For answers, investors do not have to look far.  Buffett himself has provided the answers.
  • Stocks are very expensive right now.
  • BRK.B stock itself is not inexpensive enough to buy.
  • Berkshire Hathaway is holding a lot of cash, so it can capture better opportunities as they will certainly arise in the future.
• Most investors do not have billions like Buffett and do not have deal access like Buffett.  See our “what to do now” section below.
• Two data center stocks are jumping.  Cipher Mining Inc (NASDAQ:CIFR) signed a deal with Amazon.com, Inc. (NASDAQ:AMZN), and IREN Ltd (NASDAQ:IREN) signed a deal with Microsoft Corp (NASDAQ:MSFT).
• AMZN stock is jumping on a deal with OpenAI.
• Mergers and acquisitions continue to heat up.
  • Kimberly-Clark Corp (NASDAQ:KMB) is buying Tylenol maker Kenvue Inc (NYSE:KVUE).  KVUE was previously spun off from Johnson & Johnson (NYSE:JNJ).
  • Precious metal miner Coeur Mining Inc (NYSE:CDE) is buying New Gold Inc (NYSEAMERICAN: NGD).
• In the truce in the US China trade war, for the time being, China will not add to export controls on rare earth minerals and will end investigations into U.S. semiconductor companies.
• Expect blind money to flow into the stock market today and tomorrow.  Blind money is the money that flows into the stock market on the first two days of the month without any analysis irrespective of market conditions.

Magnificent Seven Money Flows

Most portfolios are now heavily concentrated in the Mag 7 stocks.  For this reason, It is important to pay attention to early money flows in the Mag 7 stocks on a daily basis. 

In the early trade, money flows are positive in Amazon (AMZN), Alphabet Inc Class C (NASDAQ:GOOG), Meta Platforms Inc (NASDAQ:META), Microsoft Corp (NASDAQ:MSFT), and NVIDIA Corp (NASDAQ:NVDA).

In the early trade, money flows are negative in Apple (AAPL) and Tesla Inc (NASDAQ:TSLA).

In the early trade, money flows are positive in SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust Series 1 (NASDAQ:QQQ).

Momo Crowd And Smart Money In Stocks

Investors can gain an edge by knowing money flows in SPY and QQQ.  Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.  The most popular ETF for gold is SPDR Gold Trust (GLD).  The most popular ETF for silver is iShares Silver Trust (SLV).  The most popular ETF for oil is United States Oil ETF (NYSE:USO).

Oil

Due to the prospect of an oil glut, OPEC+ is changing its stance.  OPEC+ is pausing output hikes next year.  This is pushing the price of oil higher.  

Bitcoin

Bitcoin (CRYPTO: BTC) is range bound.

What To Do Now

Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.

You can determine your protection bands by adding cash to hedges.  The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.  If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.

A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.  A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.

It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.  When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.  High beta stocks are the ones that move more than the market.

Traditional 60/40 Portfolio

Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.

Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.  Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.

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Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

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