February 21, 2026, marked the release date of Warren Buffett’s final fourth-quarter earnings report.
The Q4 2025 earnings report released this time represents the performance of Berkshire Hathaway, led for over half a century by the Oracle of Omaha, the globally revered Warren Buffett, in his last act as CEO. According to this final earnings report, it was revealed that the company engaged in record-breaking “stock selling.”
This article summarizes the news reported by CNBC, which investors worldwide watched with bated breath.
Contents
- 1 The End of an Era — And the Dawn of Another
- 2 Thirteen Consecutive Quarters of Net Selling — A Defensive Stance
- 3 Why Did He Retire Holding Such a Vast Amount of Cash?
- 4 Large-Scale Sales of Core Holdings – Significant Reduction in Apple, Amazon, Bank of America Stakes
- 5 Enter Greg Abel — A New Operating Era
- 6 Buffett’s Final Lesson
- 7 2026, the Year the Investment God Left
The End of an Era — And the Dawn of Another
The market had already priced in that Buffett would step down as CEO effective December 31, 2025, handing the reins to his long-time successor candidate, Greg Abel.
However, his final concrete actions—the bold compression of Berkshire’s portfolio and the accumulation of cash on an unprecedented scale—transcend mere asset reorganization. This fact seems to carry an important message for the remaining investors.
In the latest 13F filing, while the “large-scale stock sales” thrown out by Buffett on his way out serve as a warning, one can also discover new investments that could be called an unexpected “farewell gift – an investment message.”
These stock transactions by Buffett truly suggest the end of one era and the dawn of a new
Thirteen Consecutive Quarters of Net Selling — A Defensive Stance
The most noteworthy point in Berkshire Hathaway’s activities during Q4 2025 is that the company continued to be a “net seller” for the 13th consecutive quarter, meaning the value of stocks sold exceeded the value of stocks purchased. This is said to be a prolonged defensive posture, extremely rare in Buffett’s long career.
Berkshire Hathaway Portfolio Changes (Q4-2025 vs Q3-2025)
As of the end of September 2025, Berkshire’s cash holdings and proceeds from stock sales reached an unprecedented $382 billion (approximately 57.68 trillion yen), a scale comparable to a nation’s budget.
This is a remarkable pivot for a man who famously championed buying “wonderful companies at fair prices” and holding them for the long term — ideally forever.
Lately, however, he has been doing quite the opposite.
Why Did He Retire Holding Such a Vast Amount of Cash?
There are two main possible reasons why Buffett doubled the cash holdings through stock sales.
1. Valuation Concerns
One is caution regarding the historically high valuation and overheating in the current US stock market.
The Shiller PER (CAPE Ratio), an indicator for judging whether stocks are cheap or expensive, exceeded 39 times at the end of 2025.
This is an abnormally high level comparable to just before the Dot-com Bubble burst in 2000. Buffett fundamentally believed that “extraordinary returns” come only from “buying stocks at extraordinary cheap prices.” He likely judged that “excellent investment opportunities” were not available in the current overheated market.
2. Preparing the Battlefield for His Successor
The second reason is consideration for his successor, Greg Abel.
It is believed that Buffett’s greatest fear was Berkshire, after his departure, becoming immobilized by holding overvalued stocks. By intentionally building up cash, he left behind an asset (ammunition) for Abel, enabling him to turn any market downturn he might face early in his tenure into a significant investment opportunity.
Large-Scale Sales of Core Holdings – Significant Reduction in Apple, Amazon, Bank of America Stakes
What surprised the market most in this report was the very bold reduction of key holdings that had long supported Berkshire’s portfolio.
Apple — A Symbolic Trim
Apple stock, which once constituted about 40% of Berkshire’s investment assets, was a holding Buffett trusted deeply, once praising that “the iPhone is like the most valuable real estate in the world.” However, in Q4 2025, the company sold an additional 10.29 million shares, significantly reducing its stake.
Berkshire’s Apple Stake
Compared to holdings at the end of September 2023, Berkshire’s Apple stake has been reduced by approximately 75%.
The background to this sale likely involves factors like the lengthening iPhone replacement cycle, intensifying competition in the Chinese market, and risks related to antitrust laws. Regardless of how excellent a company is, Buffett seems to have prioritized avoiding the risk of concentrated investment.
Amazon’s Quiet Exit Amidst the AI Boom
Even more shocking was the large-scale sale of Amazon stock. In Q4 2025, Berkshire sold 7.72 million shares, about 77% of its Amazon holdings.
Berkshire’s Amazon Stake
2025 was a year when big tech stocks hit new highs due to expectations for generative AI, including LLMs. AWS (Amazon Web Services) is poised to dominate AI infrastructure, but Buffett deliberately distanced himself from that frenzy.
Buffett’s concern was likely declining capital efficiency.
AI development requires massive investment, such as in NVIDIA GPUs. On the other hand, there is no certain answer yet as to how much net profit that investment will generate in the future. This can be seen as a characteristically Buffett-like decision to choose to lock in certain profits. It suggests he adopted a defensive stance towards AI investment.
Bank of America —Foresight on the FInancial System
Furthermore, Bank of America stock, a major name in the financial world, has also been consistently sold since mid-2024.
Berkshire’s Bank of America Stake
By the end of this fiscal period, the stake had fallen to less than half of its peak. Buffett had previously expressed concern about declining demand for commercial real estate in the US.
The environment surrounding the banking industry, which relies on real estate loans, is by no means optimistic. Having experienced the Lehman Shock, Buffett had long warned that “banking can become terrible once it goes wrong.” True to his word, he quietly headed for the exit before the risk materialized.
Buffett’s Final Move – A New Investment in The New York Times
While trimming technology and financial giants, Buffett added an unexpected name: The New York Times.
In Q4 2025, Berkshire acquired approximately 5.06 million shares of The New York Times, valued at around $352 million at the time. This move reflects his investment philosophy of trust in brand value and economic moats.
Why a newspaper — in the digital age?
Buffett originally loved the newspaper business but sold his holdings once due to the wave of digitalization. However, The New York Times has successfully undergone digital transformation, growing its digital subscribers to over 12.7 million, shifting from a print-based business to an online medium.
We live in an era flooded with AI-generated fake news. In such times, the value of reliable information from professional reporters is relatively increasing.
Buffett may have judged that the quality and neutrality of information themselves constitute the strongest brand value. Additionally, The New York Times’ stable dividend payouts and active share buybacks likely aligned with Buffett’s philosophy.
Enter Greg Abel — A New Operating Era
On January 1, 2026, with Buffett’s retirement, Greg Abel assumed the role of the third CEO. Abel has already begun to establish his own investment style.
Where Buffett was primarily an investor-philosopher, Abel is known as an operational strategist, having long overseen Berkshire Hathaway Energy.
He has already signaled a more performance-driven approach — including restructuring discussions around Kraft Heinz.
Abel may pursue return on investment (ROI) with greater discipline, even if it means divesting underperforming assets — something Buffett historically avoided.
Abel has publicly stated he is prepared to deploy up to $100 billion in M&A if the right opportunity arises.
If Buffett’s final years were about quiet accumulation, Abel’s opening act may be bold deployment.
Buffett’s Final Lesson
The fact that Buffett ended his final quarter as CEO as a “net seller” contains profoundly significant lessons for all investors, whether major institutions or individuals.
What lessons are embedded within? Let’s explore them here.
1. The Art of Doing Nothing
Buffett had long advised, “Be fearful when others are greedy, and greedy when others are fearful.” However, in practice, it is extremely difficult to deliberately do nothing when the market is euphoric. Yet Buffett adhered to his own investment rule—”wait patiently and quietly until the perfect opportunity arrives”—until his very last day.
2. Cash Is the Ultimate Option
While the reason Buffett increased cash this time is partly because it’s feasible in a country with the world’s strongest currency, the US dollar, he also stated, “Holding cash is a weapon to calmly scoop up high-quality stocks when a crash occurs.” It can also be seen as always being prepared for when stocks become cheap due to a downturn.
3. A Return to Fundamentals
The choice to sell recent high-flying big tech and bank stocks while buying a traditional newspaper company, The New York Times, can also be taken as a lesson. It reminds us anew that, in this century, the essence of investing lies in “trusted information, accurate information,” precisely because AI and digitalization create a mix of diverse information.
2026, the Year the Investment God Left
In 2026, after Warren Buffett, the superstar of the financial world, stepped back from the front lines, Berkshire Hathaway may seem to have lost some of its luster. Many might now feel that an era has truly ended.
Going forward, Berkshire will likely transform into a more rationality-based, modern giant conglomerate, different from the path guided by Buffett and Charlie Munger’s human-centric investment theories.
However, the numbers etched in this report are Buffett’s final testament left to the financial markets. They are valuable actions reminding us of the essence of investing: “Be fearful when others are greedy, and greedy when others are fearful.” He spent over 50 years continually proving this philosophy.
“The great investment god, Buffett,” has left the main stage, but the foundation of long-term investing he built will likely prove its true value once again amidst the market turbulence yet to come.
