HMM: Warren Buffett’s $56 Billion Silent Warning to Wall Street May Portend Trouble for Stocks.

Although Warren Buffett has consistently shied away from offering negative takes on the U.S. economy and/or stock market during his nearly six-decade tenure as CEO of Berkshire Hathaway, $56 billion of net-equity security sales over an 18-month stretch speaks volumes without the Oracle of Omaha having to say a word.

The culprit for this consistent net-selling activity looks to be a historically pricey stock market and the irrational behavior of some of its participants.

In Buffett’s annual letter to shareholders that was released in February, he had this to say about the “casino-like behavior” he wants no part of:

“Though the stock market is massively larger than it was in our early years, today’s active participants are neither more emotionally stable nor better taught than I was in school. For whatever reasons, markets now exhibit far more casino-like behaviors than they did when I was young. The casino now resides in many homes and daily tempts the occupants.”

At the end of the day, Warren Buffett and his team want a fair deal on a great business, and they aren’t willing to waiver from this ideal. As the S&P 500’s Shiller price-to-earnings (P/E) ratio shows, there simply aren’t many good deals at the moment.

There’s nothing wrong with buying into a bubble, provided you know when to get out. Buffett has exited to the tune of $56 billion.