Warren Buffett Has Repeated His Warning to Wall Street for 12 Quarters. Now, as 2026 Approaches, Is It Time to Listen?

Core Viewpoint - Warren Buffett has been a net seller of stocks for 12 consecutive quarters, which may signal caution to investors as the S&P 500 continues to rise, driven by AI stocks [2][3] Group 1: Buffett's Investment Behavior - Buffett's investment strategy involves avoiding market trends and focusing on quality companies at reasonable prices, leading to nearly six decades of market-beating returns [5] - The current cash level of Berkshire Hathaway has reached over $381 billion, a record high, indicating Buffett's cautious approach in the current market environment [7][10] - The S&P 500 Shiller CAPE ratio is at its second-highest level ever, suggesting that stocks may be overvalued [7][9] Group 2: Market Conditions and Valuation - Despite Buffett's selling, investors have continued to invest heavily in stocks, particularly in AI and growth sectors, potentially at inflated prices [11][12] - Concerns about an AI bubble have emerged, which could impact the S&P 500's performance if valuations cannot be sustained [12][13] - Historical trends indicate that declines in the S&P 500 often follow peaks in valuation, reinforcing the need for caution [13][14] Group 3: Investment Strategy Moving Forward - Investors are encouraged to follow Buffett's lead by investing cautiously while seeking opportunities, especially given the current high valuation levels [14]