Warren Buffett warns of stock market caution

Warren Buffett has increased his caution towards the stock market, reducing his holdings in major companies like Apple and Bank of America while accumulating a record cash reserve of over $334 billion. This shift comes as the S&P 500 and Nasdaq entered correction territory, dropping more than 10% from recent highs. Buffett recently described President Trump's tariffs as "an act of war," raising concerns about their potential impact on consumer prices and the economy. His comments reflect growing worries among investors about market conditions and stock valuations, which have reached historically high levels. Despite his cautious approach, Buffett continues to seek investment opportunities. He recently invested in Constellation Brands and increased his stake in Domino's Pizza, suggesting that he remains focused on long-term value in the current market environment.