I think investors are reading too much into Berkshire Hathaway’s growing cash pile, suggesting that Buffett is bearish or that the stock market is in a bubble.
Berkshire’s growing cash pile isn’t a direct signal of an imminent crash, but it does suggest a scarcity of attractive opportunities at current valuations. Historically, when high-quality capital allocators struggle to deploy cash, it often aligns with periods of market overvaluation—making downside risk a consideration rather than an outright prediction.
Berkshire’s growing cash pile isn’t a direct signal of an imminent crash, but it does suggest a scarcity of attractive opportunities at current valuations. Historically, when high-quality capital allocators struggle to deploy cash, it often aligns with periods of market overvaluation—making downside risk a consideration rather than an outright prediction.