Warren Buffett is preparing to make his biggest dump yet. Is a financial crisis on the way?

Warren Buffet is selling. Not just a few stocks. For nine straight quarters, he has been unloading assets while sitting on a record-breaking $334 billion in cash.

Now, reports say he may be offloading HomeServices of America, one of the largest real estate brokerages in the country. The industry is struggling—low sales, high prices, and limited inventory have made it a nightmare for buyers and sellers alike. If Warren is pulling out, it could mean he sees no future for the market.

The Wall Street Journal reported that Compass is in advanced talks to acquire HomeServices of America, which operates under Berkshire Hathaway Energy. But Gino Blefari, CEO of HomeServices, told employees that a sale is not happening. That denial, however, hasn’t stopped speculation. Warren doesn’t sell unless he’s lost confidence.

Berkshire’s real estate exit could signal a major downturn

Warren has done this before. He was a big believer in newspapers, investing in publications like the Omaha World-Herald and the Buffalo News in the 1970s. He thought the industry was unstoppable. But as digital media took over and advertising collapsed, he realized he had bet on a dying business. He tried holding on, but by 2020, he dumped all 30 newspapers Berkshire owned.

Now, the same thing could be happening in real estate. HomeServices became part of Berkshire Hathaway in 1999 after Warren acquired MidAmerican Energy, which owned the brokerage at the time. Over the years, HomeServices expanded to 48 brands and grew its network to 37,700 real estate agents.

But things are falling apart. In 2024, HomeServices reported a $113 million net loss—a dramatic reversal from a $13 million profit the year before and $100 million in earnings in 2022. The reason? Lawsuits.

HomeServices agreed to pay $250 million in April 2024 to settle nationwide lawsuits that claimed real estate brokerages were inflating commission fees and overcharging homeowners. Warren acknowledged the industry’s problems in Berkshire’s annual report, stating that limited housing supply and high prices have hurt the business.

Meanwhile, the housing market continues to collapse. Pending home sales dropped 4.6% in January, the lowest point since 2001, according to the National Association of Realtors, and higher mortgage rates and a lack of new listings have frozen the market, so if Warren is getting out now, it could mean he expects things to get even worse.

Berkshire moves money to Japan while dumping U.S. stocks

While Warren is stepping back from U.S. real estate, he’s betting big on Japan. Berkshire increased its stakes in Japan’s five biggest trading companies, which control everything from natural resources to electronics.

According to new filings, Berkshire now owns:

• 9.82% of Mitsui & Co, up from 8.09%
• 9.67% of Mitsubishi Corporation, up from 8.31%
• 9.3% of Marubeni, up from 8.3%
• 9.29% of Sumitomo Corporation, up from 8.23%
• 8.53% of Itochu, up from 7.47%

These companies are vital to Japan’s economy, importing oil, gas, iron ore, and copper, while supplying industries like automobile manufacturing and technology. Warren first started buying stakes in 2020, calling these firms similar to Berkshire Hathaway because they invest in long-term businesses with stable earnings.

Berkshire also negotiated with these trading firms to remove a 10% ownership cap, giving Warren room to expand his stake further. The move signals that while he’s losing confidence in U.S. markets, he sees opportunity in Japan.

Warren’s $334 billion cash pile—waiting for the crash?

While other billionaires have lost billions in the market crash, Warren has been watching from the sidelines. His cash reserves have skyrocketed to $334.2 billion, the highest in Berkshire’s history. He’s been selling off stocks for nine straight quarters, avoiding the market carnage that wiped out fortunes for Elon Musk, Jeff Bezos, and Mark Zuckerberg.

Some of his biggest sales include:

• Apple
• Bank of America
• Citigroup

At first, investors were confused. Why was Warren selling instead of buying? But now, as Trump’s economic policies create uncertainty, and markets crumble under fears of a recession, Warren looks like the only major investor who saw it coming.

The question now: Is Warren preparing for something bigger? With Wall Street in freefall and tech stocks collapsing, some believe he’s waiting for a massive crash before making his next move. Warren once said, “Be fearful when others are greedy, and be greedy when others are fearful.” Right now, he’s just waiting.

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