Buffett: Made $100 Billion on Apple but Sold Early; US Stocks Not Cheap, Won't Buy the Dip

Warren Buffett stated that despite stepping down as CEO, he remains deeply involved in Berkshire Hathaway's investment decisions. However, current market valuations are far from his threshold for action, and Berkshire, holding over $350 billion in cash, will wait for a more substantial market decline before making large-scale investments.

In an interview with CNBC on Tuesday, Buffett said recent market volatility is insignificant compared to historical opportunities for true buying—Berkshire has experienced market crashes of over 50% three times in its history, and "this one doesn't count for anything."

He only revealed that he recently completed "a very small new investment" without further details, and announced that Berkshire purchased $17 billion in Treasury bills this week through the U.S. Treasury's weekly auction.

Regarding his Apple holdings, Buffett admitted to selling too early and said he would not rule out a large-scale repurchase if the price were low enough. Apple remains Berkshire's largest single stock holding.

Still Directing Investment Decisions, Participates in Trading Daily

Buffett will hand over the CEO position to Greg Abel in early 2026, but he emphasized that he still goes to the office every day, collaborates with colleagues on trades, and remains hands-on in investment decisions.

According to him, his daily routine includes calling Mark Millard, Berkshire's Director of Financial Assets, before the market open to discuss market dynamics. Millard's office is about 20 feet from Buffett's, and he executes trades based on their discussions.

"I wouldn't make any investment that Greg thought was wrong, and Greg gets the reports every day," Buffett said. He currently serves as the company's Chairman.

Market Not Cheap Enough, Holding Large Sums Awaiting Opportunity

Buffett expressed clear caution about the current market. He said he would not enter the market merely to capture a 5% to 6% rebound, stating that the current market "is not cheap."

Berkshire held over $370 billion in cash and equivalents as of the end of last year, primarily in the form of Treasury bills. This week's purchase of another $17 billion in Treasury bills further reinforces its conservative and defensive asset allocation stance.

Buffett hinted that he would deploy this massive cash reserve only if the market experienced a significant downturn. He cited historical precedent, noting that Berkshire had experienced three market contractions of over 50% and viewed such moments as true investment windows, unlike the current level of adjustment.

Admits Selling Apple Too Early, But Current Valuation Remains Unattractive

Buffett acknowledged that reducing his Apple stake was a premature decision. "I sold too early, but I bought earlier," he said.

According to InsiderScore, Berkshire has reduced its Apple holdings to approximately $61.96 billion, but Apple remains its largest single stock investment. Buffett stated that Berkshire has accumulated over $100 billion in pre-tax profits from this investment.

Despite Apple's stock price falling over 14% from its recent high, and both the Dow Jones and Nasdaq Composite indices entering technical correction territory, Buffett still finds Apple's current price level not attractive enough. He indicated that he does not rule out Berkshire making a large buy of Apple at a certain price point, "but not in this market."

Buffett highly praised Apple CEO Tim Cook, calling him an "excellent manager" who excels in coordinating with global parties and believes Cook has managed the company even better building upon what Jobs left behind.

Cautious on Interest Rate Cuts, Focusing on Inflation and Banking Stability

On the topic of monetary policy, Buffett stated that if he were at the Federal Reserve, he would be uncertain about cutting interest rates, with his primary focus being on inflation trends and the stability of the banking system.

He did not comment on the current Federal Reserve's specific decisions, using cautious language. However, his remarks reflect his overall assessment of the current macroeconomic environment—that with inflation risks not fully dissipated and lingering concerns about financial system stability, policy easing requires careful consideration.