Buffett sells $15.5 billion: Is this really a top escape?

Berkshire Hathaway's latest quarterly report revealed a striking figure—cash reserves soared to a record $382 billion, accounting for about 30% of the total market capitalization. Even more astonishing is that the top two holdings, Apple and Bank of America, saw a combined reduction of $15.5 billion, with zero repurchases for the quarter.

At first glance, it does seem a bit alarming: with cash piled up on the floor, not buying stocks or repurchasing its own stock, is this a sign that the market is about to drop?

But this may be understood the other way around.

Buffett is actually not “timing the market”, but rather waiting for good prices to appear. His logic is very simple:

• The stock market is now close to historical highs, and there are indeed not many good deals.
• Instead of forcing yourself to buy, it's better to keep some ammunition for real opportunities.
• Recently, he is still increasing his position in Chubb Insurance, which indicates that he has not completely exited the market.

This is not market panic, but rational restraint — when the bargain disappears, it's time to wait and see.

What should you do

The response plan for small retail investors can actually be summarized in two words: Don't force it.

If you can find good targets or if the investment horizon is long enough (to withstand a possible correction in 2026), then continue with dollar-cost averaging. However, if you can't see any bargains right now or if you might need money in the short term, learning from Buffett to hold more cash isn't a loss — consider it as reserving ammunition for future investment opportunities.

Buffett's current 30% cash allocation reflects a cautious but not desperate stance. This attitude is often more worth referencing when the market is at a high.