Is Buffett cashing out? What is the $38.2 billion in cash waiting for?

Berkshire Hathaway's recent actions have been a bit unusual — last quarter, it sold off a total of $1.55 billion in Apple and Bank of America, holding a record high cash of $38.2 billion, which is equivalent to 30% of its total market capitalization. It's worth noting that Buffett usually hates cash, and this move has led many to ask: Is the pro going to start dumping?

This is not timing the market, it's waiting for a good price

On the surface, it seems that Buffett is trying to time the market, but the real logic may be simpler—he is just waiting for bargains to appear. The fact that he did not buy back any of his own stocks last quarter and stopped aggressive positioning indicates that the current market prices are not to his liking.

In contrast, his occasional small moves (such as buying more Chubb insurance stocks) precisely prove this point: I buy when there are bargains, and I lie flat when there are no good trades. In an environment where the stock market is close to historical highs, it is indeed difficult to find clearly undervalued targets.

What Ordinary Investors Should Learn

Instead of blindly following the trend and buying high, it is better to learn from Buffett's strategy of “Work when there's work to do, and rest when there's none.”

• If you can still find good targets, continue to invest regularly without any problems.
• It's reasonable to hold more cash if you need money in the short term or can't find good opportunities.
• The key is not to be hijacked by FOMO emotions, and don't force yourself to catch the bottom.

Buffett is now making this choice - maintaining a 30% cash ratio, taking action when necessary, and waiting calmly when not. This wave may not be panic, but rather rationality.