Buffett's Berkshire Hathaway holds a record $397 billion in cash. Is a market crash coming should you follow his lead? Thomas Kent Wed, July 29, 2026 at 4:45 AM PDT 8 min read BRK-B ^GSPC Photo by Mark Reinstein/Corbis via Getty Images Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. For most investors, nearly $400 billion in cash (1) would seem like a missed opportunity. But for Warren Buffett and Berkshire Hathaway, it's a deliberate strategy. The conglomerate is now sitting on a record $397 billion in cash, cash equivalents and short-term U.S. Treasury bills, according to the company's latest filings a war chest large enough to buy any of the hundreds of companies in the S&P 500. Must Read Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 6 ways to build wealth like a landlord without actually being one JPMorgan still sees gold hitting $5,000/oz by Q4 and savvy investors are protecting their wealth with a tax-advantaged Gold IRA. Learn more with a free guide from Priority Gold The tax breaks in Trump's 'big beautiful bill' expire after 2028 and experts say most people won't act in time. What to do before the window closes The eye-popping figure has fueled speculation across Wall Street and social media that Buffett is quietly preparing for a market downturn. After all, Berkshire has been selling more stocks than it's buying while its cash pile continues to grow. So, does the Oracle of Omaha see a crash coming? Buffett has always preferred patience over chasing markets Buffett has built his reputation by buying great companies at attractive prices not by staying fully invested at all costs. In recent years, Berkshire has trimmed major holdings, including Apple, while struggling to find acquisitions or stock investments that meet Buffett's strict valuation standards. He's made the same point repeatedly in shareholder letters: Berkshire would rather hold cash than overpay for businesses simply because money is available to invest. That approach may be especially relevant today. The S&P 500 continues to trade near record highs and analysts argue U.S. stocks remain richly valued after a strong rally driven in part by enthusiasm around artificial intelligence. For example, Capital Economics Chief Economic Adviser John Higgins highlights (2) that the S&P 500's cyclically adjusted price-to-earnings ratio (Shiller CAPE) has climbed above 40 a milestone previously reached only around major market peaks like the dot-com era (3). Read More: Millionaires under 43 hold only 25% of their wealth in stocks. Here's where their money is actually going Protect yourself from a bubble pop Elevated valuations don't guarantee a market crash, but they can prompt investors to think more carefully about diversification. Story Continues Rather than trying to predict exactly when stocks might stumble, some investors choose to spread their money across different asset classes so they aren't relying entirely on the stock market for long-term growth. One that's particularly good at navigating turbulent...
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