Warren Buffett Is Warning You... (& Most People Won't Listen)

Warren Buffett is sitting on over $300 billion of cash, which is more than ever before in history. That means about 27% of his company's assets are in cash right now, and the reason why that matters is because the average for the last 25 years for his company is to keep around 13% of their assets in cash. And the reason why Warren Buffett has more than doubled his cash position is because when the economy goes down, not if, but when, he wants to have cash to be able to scoop up those opportunities. Take a listen. Occasionally, very occasionally, but it'll happen again. That, uh, I don't know when it won't, it could be next week. It could be five years off, but it won't be 50 years off. You will have, we will be bombarded with offerings that, that, uh, we'll be glad we have the cash for. Now, listen, you don't have to copy what Warren Buffett does. You don't have to like him. You don't even have to listen to him, but there's a lot that we can learn from him considering he's the greatest investor of all time. The last time Warren Buffett had 25% of his assets in cash was all the way back in 2004, just a few years before the great financial crisis started. He wasn't predicting a market crash. He wasn't predicting a recession. Instead, what he said was he just couldn't find a good enough deal to park his money. Take a read from a quote that he said back in 2004, quote, I found very few Here we are two decades later and we're hearing something similar. Warren Buffett is not predicting a recession or a market crash, but what he's saying is I want to invest my money into good investments and I'm just not seeing a good investment opportunity to park all this extra money right now. Let me break this down. Warren Buffett is an active investor. That means that he looks for good investment opportunities to park his money and he doesn't wait for a recession to start investing. He just wants to find a good investment opportunity. For example, very recently, he just invested over a billion dollars into the UnitedHealth stock. And when he doesn't see a great investment opportunity, he doesn't want to chase stocks. Instead, he would rather wait and let his money lose value to inflation than make a bad investment. Take a listen. We have made a lot of money by not wanting to be fully invested at all times. And as Warren Buffett has been looking for these better investment opportunities, his cash pile has been growing year after year. This is a very rough depiction of how the stock market works. We've seen markets go up and down over the long term. We have seen markets go up. So this right here is the 2025 tariff market crashes that we saw in the beginning of the year. This right here is the 2022 bear market when stocks fell by around 20%. This right here is the 2020 pandemic crash, which we all painfully remember. This right here is the 2008 real estate and housing market crash, along with the stock market crash that happened. This right here is the 2000-2001 dot-com bubble bursting. In each one of these instances, we saw people panic, sell stocks because they were freaking out about what was happening in the economy. And at the same time, financially savvy investors were able to come in and scoop up great investments at discounted prices. So yes, markets go up and markets go down over the long term. We have seen markets go up, but along the way, markets crash. And this is what Warren Buffett is saying, well, I want good investments. Warren Buffett is buying here, here, here, here, here, here, here, here, here. He doesn't care which part of the economic cycle that it's in. He's always looking for good investments because he is an active investor. He's buying when markets are up. He's buying when markets are down. He's buying in 2025. He's buying in 2024, but he's being more picky when markets are high and then markets go down. That's when he deploys all the extra cash because, well, he has the extra cash sitting there waiting for the better investment opportunities. And when markets go down, well, there's a lot more good investment opportunities on sale. And for those of you that are investors or want to become investors, I do want to let you know that I put together a brand new free investing masterclass where I walk you through how you can find hidden investment opportunities before everybody else. I'll show you the research that my team and I do on how we find investment opportunities before they hit the headlines. It's a completely free masterclass. There's a ton of value in there. So if you want to check it out for yourself for free, all you have to do is click the link below to register. And when you join, you're also going to get market briefs, my free newsletter for investors as a bonus. Warren Buffett's cash pile started to generate attention back in 2019 when it hit a record $122 billion. Here we are today in 2025, and now his cash pile has essentially tripled. And there are three things that Warren Buffett often talks about when he is addressing this cash pile. That is number one, you got to understand your strategy. Number two, you need to know how to capitalize on investment opportunities. And number three, you need to how to control your emotions. So let me start with the strategy. Now, I already kind of covered this, but Warren Buffett is an active investor, and he says you should not copy him. Instead, know your strategy. For example, if you're a passive investor, be a passive investor. Take a listen. We don't think it's improper, actually, for people who are passive investors, just to make a few simple investments. So active investing is investing in individual companies, trying to find where is the opportunity going to grow in the coming years, and where can you find a good undervalued stock. That's active investing. That's what Warren Buffett does. Takes more time, more effort, more research, more risk for more potential return. On the flip side, there's passive investing. Passive investing is, you don't have to worry about it. It's a set it and forget it strategy. What this means now is you're just going to invest your money into the market. And the way you win as a passive investor is by following what I call an A, B, B strategy. Always be buying. And what this means now, you're going to invest your money into the markets every week, every two weeks, every month, and you're going to set it and forget it. This is a great strategy for the majority of people because now you don't have to worry about reading earning statements. You don't have to worry about reading financial statements. You don't have to worry about keeping up with the CEO and the company's innovation and how the economy is moving. You just set a system. You set it and forget it. And you can just get exposure through the broad economy. How do you do that? It's not by investing in Amazon or Tesla. Instead, you can just invest in the S&P 500. You can invest in the total stock market. Let me show you. Again, I can't tell you what to do because I'm just a random guy on YouTube. Investing has risks. You're never guaranteed to make money when you invest. In fact, you will lose money at some point because investing is risky. So always do your own due diligence and never blindly trust a random guy on YouTube. But pretty much every stock brokerage out there will let you invest into an ETF like VTI. An ETF is a basket of stocks and VTI will give you exposure to the total stock market. So if you wanted to invest into the stock market, this ETF will give you exposure to the stock market. But if you wanted to get a little bit more niche, let's say you wanted to invest in the top 500 companies in the stock market. Well, there's a basket of stocks called the S&P 500 that is measuring and tracking those 500 companies. And you can invest in those companies by investing in an ETF like SPY, S-P-Y. Again, pretty much every brokerage will allow you to invest in SPY. And what this means is now you're getting exposure to the 500 largest companies in the stock market. That means, yes, when you invest in SPY, you're getting exposure to Tesla, Amazon, NVIDIA, and all the other big companies. And the nice thing about this is let's just say NVIDIA starts to produce bad chips and now they're on the verge of bankruptcy. Well, you don't have to do anything because SPY will then kick that company out and replace it with another company. And you don't have to worry about it. But the key for this to work is A, B, B, always be buying. Every week, every two weeks, every month, you set it and forget it. Whether markets are booming, whether markets are crashing, you set it and forget it and keep buying. No matter what, if you do that for a few decades, you will have a lot of wealth and you will let the economy bake you wealthier. The second thing that Warren Buffett talks about is to capitalize on opportunities. And there's two types of opportunities. Number one is an economic opportunity. Number two is a stock opportunity. An economic opportunity is when we see a recession, is when we see a market downturn. And we know that these things happen. In fact, over the last 100 years, we have seen 16 recessions. We've seen 25 market crashes. And by market crash, I'm defining it as a bear market when the stock market has fallen by 20% or more. So yes, we know that pretty much every decade over the last century, we have seen at least one recession. And we know that pretty much every decade over the last century, we have averaged more than two market crashes. And this is where Warren Buffett says that's one type of opportunity. And there's always going to be craziness happening in the economy. That's not a new and unique thing for 2025. Although the things that are happening today are, of course, new and unique to this time. For example, we have an extremely unaffordable housing market. We have artificial intelligence taking jobs in pretty much every industry. We have high interest rates making it difficult for businesses that have lots of debt to keep growing. We have high inflation and consumer spending slowing down because of accumulated inflation over the last number of years. And we have a growing number of corporate defaults here happening in 2025. Does that mean we're going to have a recession tomorrow? Like Warren Buffett said, no, probably not. In fact, it's not very likely. However, we know that a recession will happen. Nobody knows when. And this is what Warren Buffett says is he wants to be prepared for when that downturn happens, because a lot of people want to time to time and predict when it's going to happen. But nobody knows. Nobody has that crystal ball. So instead of trying to time the market, what Warren Buffett says is that time in the market is what beats time in the market, because the longer money is in the market, the more time and money has to compound and grow because we know recessions are going to happen. And when the recession happens, that's when you can come in and invest even more when good investments go on sale. The second type of opportunity that Warren Buffett likes to capitalize on is a stock opportunity, which is, yeah, you're not in a recession. The economy might be fine, but there are certain companies that are now undervalued, where maybe it's beaten up because of something else happening in the economy. Maybe they had bad press. Maybe they had a bad CEO, which they just replaced. Maybe now they are creating something new and people don't know about it yet. Maybe it's an industry that's getting a lot more attention that the general market hasn't picked up on yet. That's what Warren Buffett calls more of a stock opportunity, and that can also create opportunities in every stage of the economy, whether markets are booming or crashing, because he doesn't wait for a recession to invest. He just wants a good investment opportunity regardless of where you are in the economic cycle. And then we have number three, which is don't get emotional. And this is something that is difficult. As somebody who owns a financial media company, I can tell you that the traditional financial media loves selling you emotion. What do I mean? Because when things are good, they'll tell you how the markets are booming and nothing can go down. When markets are crashing, they'll tell you how the world is ending because those are things that drive clicks, and that's what makes money. And this is where your job is to not get emotional, to be able to cut through the noise. And here's a little secret that most people are scared to tell you. Generally, generally, things are not as good as the media might make it seem, and also things are generally never as bad as the media might make it seem. It's usually somewhere in the middle. So your job is not to get caught up in the emotion and find the opportunity through all the things. Now, again, you don't have to be an active investor. You could be a passive investor. In fact, you don't have to manage your money yourself. You can just give your money to a financial advisor. We know that investing is the way to build wealth, and there are many ways to get there. You just have to know what your strategy is, be able to capitalize on the opportunities, and not let the emotions get the best of you, because emotions are the enemy of profits. Again, if you're an investor or want to become an investor, I've put together a free investing masterclass. I have that link for you down in description, and if you enjoy this video, the best thank you is to share this video with a friend, a colleague, a family member, or a fellow investor. Now, I know there's a lot of content on the internet about creating passive income, but 98% of what you see is garbage. If you want to have enough income coming from your investments to fund your lifestyle, it is not going to be easy, and it's not risk-free. Investing has risks, but it is possible. So now, if you're still sticking with me, let me show you how you can actually do it.