5 days ago
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David Jagielski, CPA, The Motley Fool
Tue, June 16, 2026 astatine 9:59 AM CDT 3 min read
Warren Buffett has generated terrific, market-beating returns for years by focusing connected investing successful prime businesses astatine just prices. That means he's often near sitting connected the sidelines erstwhile determination aren't immoderate compelling buying opportunities. While he's nary longer the CEO of Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB), the company's currency heap has grown importantly implicit the years and remains precocious nether Buffett's successor, Greg Abel.
Sitting connected currency isn't a immense interest for Buffett. Investing, aft all, involves a semipermanent attack and mindset. There's thing helium fears overmuch much than letting currency beryllium idle and not investing it successful stocks. And it's thing investors should fearfulness arsenic well.
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Buffett's much acrophobic astir making a mistake
In an aged missive to Berkshire's shareholders backmost successful 2003, Buffett explained wherefore he's OK with letting currency beryllium idle: he's much acrophobic astir making a much costly mistake.
Our superior is underutilized now, but that volition hap periodically. It's a achy information to beryllium successful – but not arsenic achy arsenic doing thing stupid. (I talk from experience.)
Buffett has ever been focused connected not losing money, and that's been a precedence successful his investing approach. The information of investing excessively aggressively is that you could marque a mediocre determination by buying a atrocious stock, incur losses, and necktie up your wealth successful that investment, perchance preventing you from utilizing it for amended purposes.
Berkshire has go 1 of the astir invaluable companies successful the satellite by focusing connected a disciplined concern strategy that emphasizes sound, harmless decisions. Today, its marketplace headdress is implicit $1 trillion, and it's a rarity successful the trillion-dollar club, being that it isn't successful the tech sector.
Investors should see Buffett's attack erstwhile investing successful stocks contiguous
In today's market, valuations person reached obscene levels. SpaceX stock is the latest and possibly champion illustration of that close now. Earlier today, the money-losing company's valuation was astir $3 trillion, surpassing some Amazon and Microsoft, 2 of the astir palmy businesses successful the world.
Retail investors person been anxious to leap connected SpaceX and different stocks retired of fearfulness of missing retired connected imaginable gains. Instead, the bigger fearfulness should beryllium buying astatine ridiculously precocious levels that whitethorn acceptable them up for important losses later.
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