Core Insights - Berkshire Hathaway's stock has declined over 10% while the S&P 500 and Nasdaq Composite have reached new highs, raising questions about Warren Buffett's investment acumen [5][11] - Buffett's investment strategy emphasizes value, and he has refrained from repurchasing Berkshire shares due to high valuations, indicating a disciplined approach rather than a loss of touch [13][17] Company Overview - Warren Buffett, CEO of Berkshire Hathaway, is recognized as one of the greatest money managers, with a cumulative return of 5,868,186% on Class A shares over six decades [2][3] - Berkshire Hathaway is one of only 11 public companies to achieve a $1 trillion valuation [2] Investment Strategy - Buffett's favorite stock is Berkshire Hathaway itself, which is not listed in the quarterly Form 13F filings but can be found in the company's operating results [6][7] - Since July 2018, Buffett has repurchased nearly $78 billion worth of Berkshire shares, more than the combined investments in major companies like Apple and Coca-Cola [10] Market Conditions - As of July 22, the "Buffett Indicator," which measures market valuation against GDP, reached a record high of 212.23%, indicating that value is scarce in the current market [20][21] - Buffett has been a net-seller of equities for 10 consecutive quarters, with a significant $174.4 billion more in stocks sold than purchased [19] Future Outlook - Buffett's current strategy reflects a commitment to value investing, with no repurchases made when Berkshire's premium to book value reached 60% to 80% [17] - The company holds at least $30 billion in cash and equivalents, positioning it for future opportunities when valuations become more favorable [14]