What is Buffett doing? Holding $382 billion in cash, yet reducing his position in Apple and Bank of America.

Recently, Berkshire Hathaway's actions have been quite interesting. In the last quarter, it sold off core Holdings worth $15 billion in one go, with cash reserves reaching a record high of $382 billion, accounting for one-third of its market capitalization.

Even more outrageous is that Buffett, the “never short America” old man, actually zero buybacks of his own stocks, and is even reducing his holdings in top stocks like Apple and Bank of America. This scene looks like market timing trading no matter how you view it.

But this is not actually timing the market; it is waiting for opportunities.

Buffett has always opposed market timing investments—that's a losing game. But that doesn't mean one should be fully invested. His logic is actually quite simple:

If there are no good trades, hold cash. Buy cheap goods when available (for example, I recently bought more Chubo Insurance), but never force a trade.

The stock market has hit a new high, but he doesn't see enough cheap chips. Rather than buying just to fill the numbers, it's better to wait on the sidelines. This mindset of “ready to strike at any time, but never investing recklessly” is actually the most astute.

How do retail investors learn?

Don't follow the trend to time the market, but don't force it either. If you can find truly cheap assets, or if your investment horizon is long enough (to absorb short-term fluctuations), it's fine to continue positioning.

But if your investment space is limited, or you might need money within two years, learn from Buffett to hold a higher cash ratio. The current market is like this, there's nothing to be ashamed of.