Gates Foundation Trust just dumped 2.4M BRK shares last quarter — here's what it actually means

So Bill Gates' charitable foundation is bailing on Berkshire Hathaway, cutting its stake from 30% to 25% of the portfolio. Wild? Not really. Here's the deal:

**Why the selloff?**

Berkshire itself is sitting on $380B+ in cash rn — that's over 1/3 of its entire market cap. Buffett's basically saying "I can't find good deals at these prices." And the market? S&P 500 is trading at ~30x earnings, nearly 2x the historical average. Yikes.

When even the world's best investors can't find value, it's a red flag. Gates' team seems to agree — they didn't *increase* a single position last quarter, and net-sold half their holdings.

**The other angle: diversification**

Having 25% of your portfolio in one stock is... a lot. Even if it's Berkshire. So Gates is rebalancing, taking profits near all-time highs. The timing's sus too — BRK trading at 1.6x book value, above its decade average of 1.2-1.5x.

**What does this tell you?**

Buffett won't do buybacks. Gates is trimming positions. Both are hoarding cash. The subtext: they think valuations are stretched, and they're preparing for a potential correction.

Not saying panic. Just saying smart money is getting cautious.