Warren Buffett steps down as Berkshire Hathaway CEO after 60 years with a cash pile of $382B in Treasury bills, signaling caution in an overvalued market. Buffett’s departure raises concerns about stock valuations and future returns, with the S&P 500 trading at historical highs and a forward P/E above 23x.

Berkshire Hathaway has been selling stocks for 12 quarters, reducing Apple holdings and increasing cash reserves. Buffett’s cautious approach may be influenced by high valuations, preferring risk-free returns from Treasury bills over investing in overpriced stocks.

Buffett’s exit strategy includes maintaining flexibility for potential acquisitions or buybacks amid market uncertainty. Historical data shows that when the S&P 500 forward P/E exceeds 23x, 10-year returns have been negative. Buffett aims to avoid overpaying in the current market environment.

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Read more at Yahoo Finance: Is This Warren Buffett’s Final Warning About the S&P 500?