According to the financial news app Zhitong Finance, documents disclosed by the U.S. Securities and Exchange Commission (SEC) show that Warren Buffett's deputy and vice chairman in charge of insurance business, Ajit Jain, has sold over half of his shares in Berkshire Hathaway (BRK.A.US). The 73-year-old &#34;veteran&#34; sold 200 shares of Berkshire Hathaway's Class A stock on Monday at an average price of $695,418 per share, totaling approximately $139 million.After this sale, Jain will only hold 61 shares, while his family trust fund set up for descendants will hold 55 shares, and his non-profit organization Jain Foundation will hold 50 shares. The shares sold on Monday represent 55% of his total holdings in Berkshire Hathaway.This move marks Jain's largest sale since joining Berkshire Hathaway in 1986. The specific reasons driving this move are currently unclear, but it is evident that he took advantage of Berkshire's recent high prices. By the end of August, the group's stock price exceeded $700,000, with a market value of $1 trillion.David Kass, a finance professor at the University of Maryland's Robert H. Smith School of Business, commented, &#34;This seems to be a signal that Ajit believes Berkshire's valuation is sufficient.&#34;This is also consistent with Berkshire's recent significant slowdown in stock buyback activities. The company, headquartered in Omaha, Nebraska, repurchased only $345 million worth of stock in the second quarter, far below the $2 billion repurchase amounts in the previous two quarters.Bill Stone, Chief Investment Officer of Glenview Trust Co. and a Berkshire shareholder, said, &#34;I think this is at best a sign that the stock price is not cheap. A price of more than 1.6 times book value may be close to Buffett's conservative estimate of intrinsic value. I expect Berkshire will not repurchase a lot of stock at this level, if any.&#34;Jain, a seasoned investor who has been at the helm for 40 years, has played a crucial role in Berkshire's unparalleled success. Not only has he led the company into the reinsurance industry, but he has also recently led Geico, the company's most important auto insurance business, to achieve profitability. In 2018, Jain was appointed Vice Chairman of the insurance business and a member of Berkshire's board of directors.Buffett has also praised him, writing in his 2017 annual letter, &#34;Ajit has created hundreds of billions of dollars of value for Berkshire shareholders. If there were another Ajit, you could swap me for him without hesitation. Make the deal!&#34;Before the official announcement that Greg Abel, Berkshire's vice chairman of non-insurance businesses, will eventually succeed the 94-year-old Buffett, there were rumors that Jain was likely to take over leadership of Berkshire. Buffett clarified that Jain &#34;never thought about running Berkshire&#34; and there is no competition between them

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Warren Buffett's deputy Ajit Jain has sold over half of his stake in Berkshire Hathaway (BRK), selling 200 shares for a total of approximately $139 million, marking the largest sell-off since joining in 1986. Jain will now only hold 61 shares, with the reason still unclear, but analysts believe this move may indicate his view that Berkshire's valuation is already sufficient. Recently, Berkshire's stock buyback activities have significantly slowed down, with the stock price exceeding $700,000

- Ajit Jain, Warren Buffett's deputy overseeing insurance operations, sold over half of his Berkshire Hathaway shares, marking his largest sell-off since joining in 1986. The move, totaling around $139 million, reduced his holdings to 61 shares, signaling potential overvaluation concerns amidst Berkshire's recent high stock prices exceeding $700,000 by August. Analysts suggest Jain's actions reflect a belief in Berkshire's full valuation, aligning with the company's slowed stock buybacks and his pivotal role in its success.
- Speculation arose about Jain succeeding Buffett before Greg Abel, but Buffett clarified Jain never aspired to lead Berkshire, dispelling any competition between them. Jain's strategic contributions, notably in reinsurance and Geico's turnaround, underscore his significant value creation within Berkshire Hathaway, earning Buffett's high praise for his immense shareholder value generation.
- Despite Jain's substantial role, Berkshire's reduced buyback activity hints at cautious valuation assessments, with analysts noting the stock trading above 1.6 times book value may limit extensive repurchases at current levels. Jain's recent sell-off aligns with Berkshire's conservative approach, emphasizing fundamental value considerations over aggressive buyback strategies.

What signal? Buffett, a 40-year "veteran," aggressively reduces Berkshire Hathaway (BRK) holdings by more than half