Warren Buffett Once Summed Up Investing in 13 Words. Here's Why It's More Important Than Ever.
2026-10-15 16:45
•Neil Patel •The Motley Fool
•• •• Axe Cap view
Buffett’s 13 Words Still Matter in a Crazy Market
With valuations near bubble territory, Buffett’s call to be fearful when others are greedy feels more relevant than ever.
Buffett’s advice to ‘be fearful when others are greedy’ rings loud today as the US market trades at one of its highest valuations in history. His own firm, Berkshire Hathaway, is sitting on a massive cash pile of $359 billion—not because they can’t find deals but because prices are simply too high. For South African investors, this caution translates into being wary of local counters that have already run hard alongside global tech trends, like Naspers and Prosus. The rand’s recent weakness against the dollar (USD/ZAR) also adds pressure, making offshore exposure more expensive. A pullback is overdue, and chasing last year’s winners invites disappointment. That said, staying too defensive could mean missing the eventual opportunities when the market corrects. If inflation or global growth surprises on the upside, the current mood of fear might flip quickly. this is just our opinion and not financial advice
Trim positions in richly valued Naspers and Prosus and hold cash or defensive stocks like AngloGold Ashanti. Keep a close eye on USD/ZAR for entry points into offshore assets.
- Naspers
- Prosus
- USD/ZAR
- global growth surprises
- rand strengthening sharply
7/10
The article examines Warren Buffett's famous investing principle: 'Be fearful when others are greedy, and be greedy when others are fearful.' With the S&P 500 trading at a cyclically adjusted P/E ratio of 41.8—near dot-com bubble levels—and having surged 131% since October 2022, the article warns investors to be cautious about elevated valuations while noting that sentiment alone shouldn't be used as a predictive tool. Berkshire Hathaway's massive $359 billion cash position suggests a defensive stance.
Our take is based on reporting first published by The Motley Fool.