The Single Market Signal That’s Freezing Buffett’s $325 Billion (While Dip Buyers Go All-In)

Over the last month… Tesla is down 32%, Nvidia? 19%. Even Amazon (where we all practically have Prime autopilot) is down 16%. Some of you were out here swearing up and down that Nvidia was a steal at $120 after the DeepSeek joke. Well, guess what? It's sitting at $106 now. If that's a bargain, I’d love to hear your thoughts on my cousin’s 2010 Nissan Altima with 230k miles and a missing muffler.

But you know who didn’t get caught in this mess? None other than Warren Buffett, the Big Mac-eating, Coke-drinking, old Cadillac-driving Oracle of Omaha himself.

And one chart explains exactly why Buffett has been sitting on a record $325 billion cash hoard while everyone else was busy YOLOing their life savings into overpriced stocks.

Buffett’s investing mantra is simple: "Be fearful when others are greedy."

Well, right now, investors have been paying close to $30 for every $1 of corporate earnings. Historically, that number should be around $18. (Can someone say bubbly?) The chart that explains this? The S&P 500's price-to-earnings ratio, which is currently 67% above historical norms and almost 50% higher than in early 2022.

Buffett thinks stocks are way too expensive, and instead of chasing overpriced stocks like a WallStreetBets trader on margin, he’s chilling with enough cash to buy every single NBA team… twice.

Over the past year, Berkshire sold over $100 billion in stocks, including lowering its massive Apple stake by two-thirds. That’s $134 billion in net stock sales in 2024… more than any other time in Buffett’s career.

And historically, when Buffett sells big, the stock market follows up with a below-average year. Since 2010, in years following a major Buffett stock dump, the S&P 500 has averaged an 11% return, compared to 13% overall. Not a crash, but a sign that Buffett knows something the rest of the market is ignoring. 

Some people think Buffett is being too conservative, arguing that sitting on cash is a losing game with inflation running hot. But let’s not forget… the last time Buffett had this much cash was during the 2008 financial crisis. And he used it to snatch up deals on the cheap while everyone else was panicking.

Right now, he’s waiting. Watching. Letting overpriced stocks come back to reality before pulling the trigger on his next big move. And if history is any guide? You might want to pay attention.

Because when Buffett finally spends that $325 billion, it won’t be on hype stocks trading at 30x earnings. It’ll be on deep value plays that set up the next decade of Buffett-sized gains.

PS: Last week, I broke down a stock that both Nancy Pelosi and Cathie Wood just bought… but here’s the thing: it was only available for premium members.

Not only did I reveal the stock, but I also dissected Nancy’s trade structure, proving she’s in it for the long haul. If you weren’t a premium member, you missed the breakdown on why her entry signals serious conviction… the kind of insight that separates smart traders from the ones just chasing headlines.

If you want real stock picks and trade ideas every single day—not just the surface-level news everyone else sees… you need to check out our premium membership. We dig through SEC filings and insider trades daily, flagging the best opportunities. And when we find a can’t-miss trade, we break it down in a full write-up… so you know exactly what’s happening and why it matters.

Don’t miss the next one. Click here and become a premium member today.

Stock.News has positions in Tesla, Amazon, Apple, and Coca-Cola.