Buffett’s $325 Billion Cash Hoard Is an Early Warning Signal

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Berkshire Hathaway Inc. reported its stock holdings last week — a widely anticipated quarterly update of Warren Buffett’s latest trades. There were some notable ones, including the addition of Domino’s Pizza Inc. to Berkshire’s portfolio and more trimming of its stake in Apple Inc.

But those moves have been overshadowed by Berkshire’s $325 billion cash hoard, nearly double the company’s cash balance at year end, and the most Buffett has ever amassed. It also comes at a time when Buffett’s favorite valuation gauge — a ratio of the stock market’s value relative to the size of the US economy – is at a record high.