Warren Buffett warns investors about expensive stock market valuations

Warren Buffett has warned investors that US stocks are dangerously overpriced. He made these comments during a CNBC interview at Berkshire Hathaway's 2026 annual meeting. Buffett said people are taking too many risks with their money right now. He pointed to a well-known measure called the CAPE Ratio, which compares stock prices to company earnings over ten years. This measure has predicted serious market crashes before. Buffett faced a similar situation in 1969, when he closed his investment partnership because he could not find good value. Today, markets are also dealing with high oil prices, rising inflation, and questions about artificial intelligence stocks. Buffett is leaving his CEO role in 2026. He believes investors should hold more cash and wait for better opportunities.