Berkshire Hathaway’s cash reserves hit $397 billion as Buffett warns of leverage-driven equity speculation.
Berkshire Hathaway’s cash reserves reached a record $397 billion, reflecting 14 consecutive quarters of net stock sales. Warren Buffett cited unprecedented market speculation, driven by leverage rather than fundamentals, as a key concern.
The cash pile surpasses prior highs and signals caution amid elevated valuations. Buffett’s remarks highlight risks in high-beta assets, which may face liquidation if market sentiment shifts. The trend underscores growing unease over equity market excesses.
No immediate market reaction was specified, but the move reinforces defensive positioning among long-term investors.