Dear Mr. Market:

A few months ago, when the hype machine was redlining over the SpaceX IPO, we wrote about the dangers of chasing glamorous narratives on day one. We noted how easy it is to get blinded by shiny, new tech stories while glossing over basic valuation rules. We love the excitement of a hot market.

But while the retail crowd is busy looking for spaceships, the most successful investor in human history is quietly building a fortress out of boring, old-fashioned greenbacks.

Lately, you’ve given the financial media a lot of ammunition, Mr. Market. The talking heads are looking at Berkshire Hathaway’s balance sheet and shouting from the rooftops. Under the strategic guidance of chairman Warren Buffett and CEO Greg Abel, the cash hoard has climbed to an astronomical $397.4 billion.

Naturally, the “perma-bears”…or those we affectionately call the “Broken Clock Club” (because they’re guaranteed to be right twice a day)…are having a absolute field day. They point frantic fingers at Berkshire’s $400 billion mountain of cash and Treasury bills, screaming, “Look! Even Buffett is hoarding cash because the bubble is about to pop!”

It sounds logical. But it’s a total mirage.