Sunday's THOUGHTFUL POST : WARREN BUFFETT IS TEACHING HARDEST RULE IN INVESTING

 Wild: Warren Buffett is now sitting on $381.7 billion in cash, and he’s refusing to buy 😳

Five straight quarters, zero buybacks.

No major stock purchases.

And $6.1 billion in net equity sold last quarter 🤯

When the most disciplined buyer in history won’t even buy himself, something’s off.

Here’s what Buffett is really saying: “The market’s expensive. I’ll wait.”

→ Berkshire trades at a 72% premium to book value - far above Buffett’s comfort zone.

→ The Buffett Indicator (total market cap vs GDP) just hit 217%, well past his old “playing with fire” warning at 200%.

In other words, prices are stretched, risk is high, and patience is profit.

Meanwhile:

→ Operating earnings are up 34% YoY to $13.5 billion.

→ Insurance and rail are humming.

→ The business is thriving but Buffett’s buy button stays untouched.

Because performance means nothing if valuations already price in perfection.

The pattern is familiar here.

→ Late ’90s: Buffett sat on cash while dot-coms soared.

→ 2007: he held back, then deployed billions when markets crashed.

→ 2025: same discipline - bigger numbers.

His $382 billion war chest is dry powder for when panic returns.

And it always does.

At 95, Buffett’s still teaching the hardest rule in investing:

Sometimes the bravest move is doing nothing.

source : Linas Beliūnas