Billionaire investor David Einhorn says Warren Buffett’s recent stock sales show just how overvalued the market is

Billionaire investor David Einhorn, in his Greenlight Capital quarterly letter, warned that the stock market is the most overvalued since the firm’s founding in 1996. Citing Warren Buffett’s recent stock sales, Einhorn emphasized that now may not be a good time for high equity exposure. While Buffett is known for avoiding market timing, his recent actions—such as accumulating a record $189 billion cash pile—suggest caution.
Greenlight noted that Buffett’s history of exiting markets ahead of downturns has contributed to his long-term success. Though not predicting a crash, the fund highlighted concerns over high price-to-earnings ratios and advised holding off on equities until better opportunities arise. Greenlight itself remains conservatively positioned with minimal equity exposure but saw gains in investments like gold and Green Brick Partners.