The Buffet Indicator, a simple but powerful tool for gauging market valuation, has reached 178%. This metric is calculated by taking a total U.S. stock market capitalization and dividing it by the country's Gross Domestic Product (GDP). Historically the indicator has been considered a warning sign of an overvalued market when it exceeds 100%, and its current level is a huge red flag.

The major driver of the overvaluation are the top 7 stocks like Nvidia and Tesla. These companies have a combined market cap of over $19 trillion, which alone represent over 1/3rd of the entire U.S. market.

That's absurd, and this concentration of value and the fact that BRK has been a net-seller of stocks for the past three years suggest intelligent investors are looking for actual value instead of the hype.