We can only guess that the market is about to crash, or stock prices will be discounted. He did this before and is now selling off stocks that had increased in value. That is how Berkshire makes profits from market crash. (A bear player? and sells off in Bull market)
Brilliant eh....
Buffett indicator: Stock Market Cap Indicated by Wilshire 5000/GDP
The Buffet strategy does not seem to be rocket science. Just stay liquid when you see the market overhyped and the bubble is ready to burst. Then go bargain hunting (just like in 2008 for the BofA stocks which they are unloading now)
Compare this with historical average. Higher or lower? (Lower - buy) Higher, expect the difference to be the amount of crash. So when that happens dont buy!!!
It should give the % of overvalue of stock market cap over GDP and would indicate the % of crash
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