Warren Buffett advises investors not to panic amidst market fears, as he builds a significant cash reserve for Berkshire Hathaway. Despite being a net seller of stocks for 12 consecutive quarters, Buffett remains optimistic. He suggests investors follow his lead by selling stocks with lower conviction, holding onto favorites, and staying calm. Building cash reserves, like Buffett’s $382 billion, is wise for future investment opportunities. When buying stocks, follow Buffett’s lead by being selective and prioritizing attractive valuations relative to growth prospects. Don’t swing at everything – wait for your pitch. 1. The stock market reached record highs today, with the S&P 500 closing at an all-time high of 4,500 points. Tech stocks were the biggest gainers, with Apple and Amazon both seeing significant increases in their share prices.

2. In international news, tensions continue to rise between Russia and Ukraine as Russian troops amass along the border. The United States has warned of severe consequences if Russia invades Ukraine, with President Biden stating that the US will stand with Ukraine in the event of an attack.

3. The CDC has recommended that all Americans, regardless of vaccination status, wear masks indoors in areas with high transmission rates of COVID-19. This comes as the Delta variant continues to spread rapidly across the country, leading to a surge in cases and hospitalizations.

4. In sports news, Simone Biles has withdrawn from the women’s gymnastics team final at the Tokyo Olympics due to mental health concerns. Biles, a four-time Olympic gold medalist, stated that she needed to prioritize her well-being and would be taking a step back from competition.

Read more at 1. Tesla’s stock surges to record high after announcing plans to split its shares. – CNBC

2. Apple becomes the first company to reach $3 trillion market value. – Wall Street Journal

3. Amazon reports a 9% increase in sales for the holiday season, exceeding analysts’ expectations. – Reuters

4. Microsoft acquires gaming company Activision Blizzard for $68.7 billion, the largest deal in its history. – CBS MarketWatch

5. Netflix’s subscriber growth slows down in Q4, causing stock to drop by 20%. – Barchart: Warren Buffett Is Sending a Clear Warning As 2026 Approaches: 3 Things Investors Should Do