The market has been buzzing about Warren Buffett's huge cash stockpile that's reached record levels. The legendary investor has been a net seller of equities for the past nine quarters, and Berkshire Hathaway (NYSE: BRK.

Warren Buffett is a gifted teacher who explains complex topics in a digestible format. This year he touched on Berkshire Hathaway’s massive cash hoard, among other items.

Whenever Wall Street authoritative figures, such as a large institution or individual investor, decide to shift a view on a specific stock or industry, retail traders can significantly benefit from attempting to reverse engineer the reasoning behind such a decision and shift.