Buffett's latest actions are quite interesting. This old man has recently been heavily selling off Apple and Bank of America stocks, putting all the money into one thing—U.S. Treasury bonds.

The data is very clear as soon as it comes out: Berkshire has sold far more stocks than it has bought over the past 12 quarters, with a net sell-off exceeding 183 billion USD. By the end of Q3, Berkshire's holdings of U.S. Treasury bonds have soared to 320.5 billion USD, an increase of nearly 10 billion USD compared to Q2.

Why? Because the valuation has really become expensive. Apple's forward P/E is now over 33 times, while when Buffett entered the market it was around 10 times. Bank of America is the same, it has dropped from its peak but is still expensive. Meanwhile, short-term U.S. Treasury yields are now over 3.8%, which is actually quite good in this environment.

Interestingly, Buffett also invested $9.7 billion in Occidental Petroleum's OxyChem, indicating that good deals are still sought after. However, such opportunities are too rare - to exhaust over $320 billion in cash, 34 such deals would need to be found.

This leaves a good hand for Greg Abel, who is about to take over: ample cash, waiting for the right opportunity.