Why Bill Gates Is Quietly Dumping Berkshire Hathaway -- And What It Means

The Numbers That Matter

Bill Gates’ foundation just sold off 2.4 million shares of Berkshire Hathaway last quarter. Sounds like a routine portfolio shuffle? Maybe not. Even after the dump, Berkshire remains the foundation’s single largest position at 25% of total holdings – down from 30% just a few months ago.

Here’s the thing: This wasn’t just a trim. The Gates Foundation sold shares while Berkshire was hitting all-time highs, trading at a 1.6x price-to-book ratio – well above its decade average of 1.2-1.5x. That’s textbook profit-taking behavior.

What’s Really Going On

Two things are happening simultaneously:

First, the market looks expensive AF. The S&P 500 is trading at roughly 30x earnings – nearly double its historical average. Even Berkshire itself is sitting on $380 billion in cash, representing over one-third of its market cap. Translation: Warren Buffett can’t find deals worth buying. If Buffett – the guy who literally invented value investing – is hoarding cash instead of deploying it, that’s a red flag.

Second, diversification math doesn’t lie. Holding 25% of your portfolio in a single stock is risky, even if that stock is Berkshire. The foundation trimmed it at peak valuations to rebalance – standard wealth management 101.

The Uncomfortable Question

Here’s what makes this notable: Of the foundation’s 25 holdings, 12 experienced net selling last quarter. Zero positions got increased. This isn’t just Gates rotating out of Berkshire – the entire trust is in defense mode.

Buffett himself has stopped buying back Berkshire stock, reinforcing the message that even he thinks valuations are stretched. Both billionaires have preached patience and long-term holding. Yet they’re both selling. Coincidence? Unlikely.

What This Actually Signals

This isn’t necessarily panic. The Gates Foundation Trust exists primarily to deploy capital for charitable causes, not to time markets. The selling could simply be funding their mission.

But here’s the catch: They were net buyers in previous quarters. Now they’ve flipped to net sellers across their entire portfolio while peak valuations persist. That’s a notable shift in positioning.

The takeaway? When sophisticated money managers who typically think in decades start trimming winners at all-time highs, it’s worth asking why. Sometimes that’s just rebalancing. Sometimes it’s a signal worth paying attention to.