Warren Buffett says US market is a betting arena, keeps $400 bn cash ready

Warren Buffett told investors that the U.S. stock market has become more like a gambling floor, with many participants betting on the recent AI‑driven rally. He said most of the recent gains are tied to companies linked to artificial‑intelligence and that valuations are high. Buffett noted that Berkshire Hathaway is holding roughly $400 billion in cash, waiting for better‑priced opportunities.

He reiterated his long‑standing rule of investing only in businesses he fully understands, describing it as staying within his “circle of competence.” Buffett warned that he sees “everything as expensive” and therefore prefers to wait for assets that offer a clear margin of safety.

Analysts said his comments could temper market enthusiasm and remind investors that not every rally presents a buying chance.