Buffett Begins Hibernation Process

In the fourth quarter of 2010 Buffett continued to reduce his (Berkshire’s) equity positions, cashing out approximately $1.2 billion (Berkshire 13F filings). Buffett also failed to produce any new buys and only added to a single long-term holding (Wells Fargo).  When contrasted against yesterday’s penchant for deal making these activities, or lack thereof, strongly suggest that Buffett is becoming bearish on equities.