Buffett Sells Billions in Stocks, Builds Record $167B Cash Pile Amid Warning Signs of Overvaluation
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Warren Buffett has been a net seller of stocks for 5 consecutive quarters, totaling $38.8 billion in net equity sales. This signals stocks are overvalued.
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The S&P 500's high Shiller P/E ratio of 34 suggests stocks are historically expensive and due for a potential large correction.
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Buffett believes markets exhibit more "casino-like behavior" compared to when he was younger, tempting people to gamble rather than invest wisely.
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Berkshire Hathaway's cash pile recently hit a record $167.6 billion, showing Buffett's patience to wait for good deals despite pressure to put the capital to work.
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History suggests bear markets are usually brief while bull markets last much longer, supporting Buffett's long-term optimism in holding cash and stocks despite volatility.