Warren Buffett & Berkshire Stay Cautious While Markets Rally—Time to Panic or Profit?

Wall Street's bull run hits new highs—but the Oracle of Omaha isn't biting. Should you?

Buffett's bearish bets

While retail investors pile into meme stocks and crypto, Berkshire Hathaway's cash pile balloons to $147B. The old guard's playing defense as the casino… sorry, 'market'—keeps hitting record highs.

The contrarian playbook

No IPOs. No tech bubbles. Just railroads and insurance. In a world of zero-DTE options and algorithmic trading, Buffett's strategy looks either prehistoric or prophetic.

Your move, degenerates

Either the greatest investor alive sees a crash coming… or he's missing the last train to Gainsville. Meanwhile, your Robinhood account's up 300% on Dogecoin futures. What could go wrong?

Image source: Getty Images.

Should investors follow Buffett's lead?

Buffett is clearly cautious about the stock market at this time, including his own company's stock. He's been reducing Berkshire's equity positions while also not buying back stock. That combination has led to Berkshire having a mountain of cash at its disposal, which he hasn't felt inclined to use.

If Buffett thinks Berkshire stock is overvalued and doesn't want to buy it, I think that is a good indication that investors shouldn't be piling into it at this moment. If he starts buying back shares again, then investors can return to more aggressively buying the stock for themselves.

As for the market as a whole, I would not recommend trying to time the market for the average investor. The best course of action is to still follow a simple dollar-cost averaging strategy, where you invest a set amount each month. Exchange-traded funds (ETFs) can be a great vehicle for this strategy, as can Berkshire stock itself, as it is a sound collection of businesses and stocks.