Berkshire Hathaway is sat on a large pile of cash right now and some investors may be nervous that Warren Buffet has lost his touch missing out on some of the recent tech stock rises. However, sitting in cash may be the most sensible thing to do given the current market valuations. Warren Buffet has said that most stocks are just too expensive to invest in. Does it make sense to back Buffet to navigate through the coming tricky time?

Over the last 15 years, Berkshire Hathaway has risen 66.67%% of the time between August 09 and October 06 with an average return of +2.85%. The largest gain was in 2007 with a 12.82% gain. The largest loss was in 2015 where Berkshire Hathaway registered a -8.53% loss.

Major Trade Risks: Any decision to purchase stocks which falls in price by Warren Buffet has the potential to drag the share price down. Although Warren Buffet is one of the greatest investors of all time remember that in trading, as in life, no one is infallible.