Buffett Warns on Silly Stock Prices as S&P 500 Climbs 8% in 2026

5 articles · Updated · The Motley Fool · May 12

Warren Buffett said investors are in a stronger “gambling mood” than ever, warning that many stocks now trade at “silly” prices even as the market keeps rising.
An 8% gain in the S&P 500 this year and fresh record highs have pushed valuations higher, with the Shiller P/E near its highest level since the early 2000s before the dot-com crash.
Buffett’s caution helps explain Berkshire Hathaway’s restrained stance on stocks in recent years as soaring prices have made risk-reward less attractive.
He did not argue for abandoning equities altogether, but said this is a time to cut risk, stay diversified and avoid overconcentration in high-flying sectors such as tech.

Is Buffett’s caution a wise warning, or is he missing the greatest tech boom since the internet?

With experts divided on timing, what specific event could trigger the market correction Warren Buffett predicts?