Warren Buffett stated that despite stepping down as CEO of Berkshire Hathaway, he remains deeply involved in the company's investment decisions. The current valuation of the U.S. stock market is far from meeting his criteria for action. With over $350 billion in cash, Berkshire will wait for a more significant market downturn before making large-scale investments.
Buffett told CNBC in an interview on Tuesday that recent market volatility pales in comparison to historical buying opportunities—Berkshire has experienced three instances of market declines exceeding 50% in its history, and 'this time, it’s nothing.'
He only revealed that a 'very small new investment' was recently made without providing further details. Meanwhile, he announced that Berkshire purchased $17 billion in Treasury bills at the U.S. Treasury's weekly auction this week.
Regarding Apple holdings, Buffett admitted selling too early and said that if the price is low enough, he would not rule out making significant purchases. Apple remains Berkshire's largest single stock holding.
Buffett also warned that as the relationship between banks and non-banking institutions grows closer, he has already observed signs of vulnerability within the banking system.
Still leads investment decisions and comes to the office daily to participate in trading.
Buffett handed over the CEO position to Greg Abel in early 2026, but he emphasized that he still comes to the office every day, collaborates with colleagues on transactions, and maintains hands-on involvement in investment decisions.
According to him, his daily routine includes calling Mark Millard, director of Berkshire's financial assets, before the market opens to discuss market dynamics. Millard's office is about 20 feet away from Buffett's and is responsible for executing trades based on their communications.
"I won’t make any investment that Greg thinks is wrong. Greg receives reports every day," Buffett said. He currently serves as the company's chairman.
The market is not cheap enough; sitting on substantial cash while waiting for opportunities.
Buffett explicitly expressed caution about the current market. He said he wouldn’t enter the market just to capture a 5% to 6% rebound in index gains. The current market, he noted, "is not cheap."
Berkshire held over $370 billion in cash and equivalents as of the end of last year, primarily in the form of Treasury bills. This week’s additional purchase of $17 billion in Treasury bills further solidified its robust and defensive asset allocation stance.
Buffett hinted that if the market experiences a significant downturn, only then would this vast cash reserve be utilized. Drawing on historical precedent, he noted that Berkshire had previously endured three instances of more than 50% declines in market value, viewing such moments as genuine opportunities for strategic positioning rather than adjustments of the current magnitude.
Admitted to selling Apple too early, but current valuations remain unattractive
Buffett admitted that reducing the stake in Apple was a premature decision. "I sold too early, but I also bought earlier," he said.
According to InsiderScore data, Berkshire has reduced its Apple holdings to approximately $61.96 billion, yet Apple remains its largest single stock investment. Buffett stated that Berkshire has realized pre-tax cumulative profits exceeding $100 billion from this investment.
Despite Apple's share price falling more than 14% from its recent high, with both the Dow Jones Industrial Average and Nasdaq Composite Index entering technical correction territory, Buffett still considers Apple's current valuation insufficiently attractive. He indicated that while there may be a price point at which Berkshire could initiate large-scale purchases, "it is not in this market."
Buffett highly praised Apple CEO Tim Cook, calling him an "outstanding manager" who excels in coordinating and communicating globally. He believes Cook has managed the company even more effectively based on the foundation left by Steve Jobs.
Focus on Inflation: Panic Within the Financial System May Lead Investors to Rush for the Exit
On monetary policy issues, Buffett stated that if he were in the Federal Reserve’s position, he would be uncertain about choosing to cut interest rates, with primary concerns centered on inflation trends and the stability of the banking system.
He refrained from commenting specifically on the Federal Reserve’s current decisions, using cautious wording. However, his remarks reflect his overall assessment of the current macroeconomic environment—against a backdrop where inflation risks have not fully dissipated and concerns linger over financial system stability, policy easing still requires careful deliberation.
Buffett emphasized that maintaining the stability of the financial system should be a top priority for the Federal Reserve. He stressed that banks like JPMorgan are critical hubs in the functioning of the economy, handling trillions of dollars in transactions daily.
Buffett said, 'Financial institutions influence one another; trouble at one institution can spread to others.'
A series of crises that have erupted recently in the credit markets have caused panic among investors, raising concerns about hidden risks in the balance sheets of banks and private credit funds. In response, Buffett noted that once panic spreads rapidly across the market, many investors may rush to 'exit en masse.' He remarked:
"If someone shouts 'Fire!' in a crowded theater, everyone will still run for the exits—after all, it’s always wise to beat others to the exit. I would stand at the back shouting, 'Please stay calm!' But that’s only because I’m not fast enough to run."
Editor/KOKO