Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), the conglomerate led by legendary investor Warren Buffett, has been relatively cautious in its stock market investments lately. The company sold more stocks than it bought in 2023, resulting in its public stock portfolio shrinking by 16% over the past year in terms of its total number of disclosed holdings. Another bearish signal is the company's rapidly rising cash pile. Late last year, Berkshire's cash position reached a record high of $157 billion.

While some may see these moves as a sign of missed opportunities in light of the otherworldly performance of artificial intelligence (AI) and weight loss stocks in 2023, Berkshire's bearishness in a full-fledged bull market is curious nonetheless. Here are three reasons Berkshire's contrarian positioning may have a solid rationale behind it.

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Source Fool.com