TL;DR Warren Buffett, head of Berkshire Hathaway, recently reduced his stake in Apple by nearly half and increased cash reserves to $277 billion amid a market sell-off. This cash accumulation has sparked speculation about an impending economic downturn, reminiscent of his actions before the 2008 financial crisis. However, Buffett’s success is rooted in classic value investing principles, not prophetic insight. He anticipates rising capital gains taxes and sees limited opportunities for investment in undervalued, high-quality stocks. Despite his massive cash reserves allowing for significant acquisitions, Buffett emphasizes a straightforward approach to investing rather than any mystical foresight.