# Warren Buffett Buys Stocks Despite Valuation Warnings

> Buffett says stocks are too expensive but Berkshire keeps buying.
- Title: Warren Buffett Buys Stocks Despite Valuation Warnings
- Summary: Buffett says stocks are too expensive but Berkshire keeps buying. Berkshire Hathaway continues buying stocks despite Warren Buffett's warning that valuations…
- Keywords: warren buffett, berkshire hathaway, s&p 500, stock valuation, alp, bending spoons, ai infrastructure, finance, money, Warren, Buffett, Buys
- Source: The Motley Fool — https://fool.com/investing/2026/10/19/warren-buffett-warned-about-stock-valuations-so-wh
- Author: Geoffrey Seiler
- Published: 2026-10-19T04:30:00+00:00
- Read time: 1 min
- Topics: warren buffett, berkshire hathaway, s&p 500, stock valuation, alp, bending spoons, ai infrastructure, finance, money
## Buffett's stock warning
Warren Buffett said stock prices were too high in an early-May interview with CNBC.

> Yeah
## S&P 500 rises 7% since warning
The S&P 500 index rose 7% between May 1 and Oct. 15 after Buffett's warning.
## Berkshire buys $23.5bn stocks
Berkshire Hathaway bought $23.5 billion in stocks while selling $3.7 billion in Q2.
## Berkshire's stock buyback activity
Berkshire bought back $4.5 billion of its own stock in Q2 after a pause since 2024.
## Berkshire's AI investments
Berkshire increased its stake in Alphabet to fund AI infrastructure, now holding 13% of its portfolio.
## Bending Spoons investment
Berkshire bought $600 million in Bending Spoons at its IPO and added $330 million in a private placement.
## Market valuation concerns
The S&P 500 has one of its lowest PEG ratios ever despite AI investment risks.
## Key takeaway

Berkshire Hathaway continues buying stocks despite Warren Buffett's warning that valuations are too high.