What Does Warren Buffett Think of Markets?

Investors should dismiss a video claim from President Trump that Warren Buffett described his economic moves as the best he saw in the last 50 years. Berkshire Hathaway (BRK.B) responded by stating that comments "allegedly made by Warren E. Buffett... are false."

What, then, does Buffett think of stock markets and the economy? CNBC reported that the chairman will not comment on either of them until the company holds its annual meeting on May 3. Investors do not need to guess Buffett's opinions. He already commented on the negative impact that tariffs would have on consumers.

Berkshire’s actions are highly defensive against a stock market drop. The fund raised its cash levels in the last several quarters. It sold Apple (AAPL) stock, which people thought was too early. AAPL stock climbed as high as $260.10 last Dec. 2024. It traded at lower highs since then. Last week, selling intensified on high volumes, sending AAPL stock to $188.38.

Buffett holds more cash (of $330 billion) as a percentage of assets at levels not seen in over 40 years. Other than increasing Occidental Petroleum (OXY), the firm is not buying into the stock dip.

Investors should follow Buffett. They should let the stock market re-price itself as the trade war between the U.S. and China escalates.