The England international forward completed his big-money move to the Etihad earlier this week after months of speculation regarding his future at Anfield and reports of a move elsewhere.
He is the latest big name to leave the club, after they lost Luis Suarez to Barcelona last summer, and Berger is concerned that his former club are getting an unwanted reputation for being a club that sells its biggest stars.
"In the last few years, they have been selling their best players, which is not a good sign for the fans or the club," he told Sky Sports.
"If you want to attract players to Liverpool, they can look up who they bought and sold in the last few years and they sold their best players, which is not a good sign."
Liverpool being forced into selling their stars
Given that both Sterling and Suarez have cited a desire to win trophies as one of the reasons behind their respective moves, it seems Liverpool have been forced to become a selling club rather than it being a conscious decision.
While they were able to resist offers from Arsenal for Suarez the year before he left for Barcelona, a failed title challenge the following season ultimately forced their hand.
Sterling has also chosen Manchester City for the same reason, the ability to challenge for titles, something the Reds cannot consistently offer at this moment in time.
It is that failure to be able to offer title challenges that is the deciding factor, with their top stars craving silverware and ultimately forcing them into becoming a selling club.
And unless they can compete at the top end regularly once again, they may remain as one for some time yet.