Warren Buffett's No. 1 Valuation Tool Recently Made History -- and His $187 Billion Warning to Wall Street Echoes Louder Than Ever

Warren Buffett's preferred valuation metric, the Buffett Indicator (market-cap-to-GDP ratio), hit an all-time high of 238.5% in June 2026, signaling historically expensive stock valuations. During his final 13 quarters as CEO, Buffett sold $187 billion more in stocks than he purchased, reflecting skepticism about market valuations. The Shiller P/E Ratio is now the second-highest on record since 1871, with historical precedent showing such levels precede significant market declines.