Warren Buffett believes the stock market is hugely overvalued.

Berkshire was holding $334.2 billion in cash, equivalents, and short-term investments at the end of 2024, which is a $9 billion increase compared with the end of the third quarter. Most of this is invested in short-term Treasury securities, from which Berkshire is receiving more than $10 billion in annual interest income.

The legendary investor wrote in Saturday’s annual letter that Berkshire Hathaway will never prefer cash over “good businesses.”