Even Warren Buffett thinks his stock is too expensive

Warren Buffett's company, Berkshire Hathaway, currently holds over $325 billion in cash. Interestingly, the company didn't repurchase any of its own stock in the third quarter, breaking a long-standing trend of buybacks. This move suggests that Berkshire's stock might be perceived as overvalued, as the company traditionally buys back shares only if the price is below the intrinsic value. Historically, Berkshire wouldn't repurchase shares if trading exceeded 1.2 times book value, a policy they abandoned in 2018.

Berkshire's Class A shares are trading at roughly 1.6 times their book value and have risen about 21% this year, slightly outpacing the S&P 500's performance. Analysts suggest that Berkshire's inaction on buybacks reflects a cautious stance towards the broader market, possibly indicating Buffett's concerns about current economic conditions. 

As the company's cash reserves swell from $276.9 billion in June to $325.2 billion, it sends a potential message that there are few attractive investment opportunities available right now. Berkshire might be biding its time, waiting for more favorable market conditions to deploy its substantial cash reserves.