In early August 2026, the global capital market's biggest focus wasn't a tech giant's earnings report, but the investment moves of the "Oracle of Omaha," Warren Buffett. According to the latest disclosed data, the cash reserves of Buffett's Berkshire Hathaway approached $200 billion at the end of the second quarter, setting a new historical record. This staggering figure sparked widespread debate on Wall Street: When the world's most prudent value investor chooses to "hoard cash," have the high valuations of US stocks peaked? For Southeast Asian investors seeking cross-border asset allocation, is now still a good time to buy US stocks?
Buffett's "Defense" vs. the Market's "Offense": The Logic Behind the Divergence
Buffett's continued selling of some major holdings and accumulation of cash is largely a defensive strategy against macroeconomic uncertainty and a wariness of valuation premiums in specific sectors (such as traditional auto insurance and some consumer stocks). However, looking at overall market performance, US stocks maintained strong resilience in 2026. The Nasdaq repeatedly hit new highs driven by sustained demand for AI computing power, and the earnings growth of S&P 500 constituents exceeded market expectations.
This divergence between the "Sage's defense" and the "market's offense" precisely reveals a crucial characteristic of the US stock market: an extremely polarized, structural bull market. For investors, the answer to why buy US stocks hasn't changed because of Buffett's selling. On the contrary, by continuously favoring the survival of the fittest, the US stock market concentrates capital into the most globally competitive leading companies, further strengthening its function as a "reservoir" for high-quality global assets.
Global Leader Monopoly Moat: The Irreplaceable Advantage of US Stocks
From the perspective of Southeast Asian cross-border capital allocation, the core significance of buying US stocks lies in accessing "global growth dividends" unavailable in local markets. While exchanges like Singapore and Thailand's SET have robust REITs and financial stocks, they structurally lack the tech giants leading the Fourth Industrial Revolution.
US stocks gather the absolute monopolists in global technology, healthcare, and consumer sectors. From NVIDIA and AMD, which control the lifeline of global computing power, to Apple and Microsoft, which define the future of human interaction, to Visa and Mastercard, which dominate global financial payment networks. These companies' revenues come from all over the world, not just relying on the US domestic economy. Buying US stocks is essentially buying the "taxation rights" of the global industrial chain. In today's world facing fragmentation risks in globalization, these assets with global pricing power and monopoly moats are the strongest defense against geopolitical risks.
Extreme Shareholder Return Culture: The Dual Boost of Buybacks and Dividends
Beyond capital gains, another major draw for global long-term capital into US stocks is their extreme shareholder return culture. In 2026, with the Federal Reserve's interest rate path gradually becoming clearer, the cash flow of US-listed companies remained abundant. Not only mature companies, but even some tech giants are boosting earnings per share (EPS) through large-scale stock buybacks.
When Southeast Asian investors face exchange rate fluctuations and dividend tax considerations in local markets, the buyback mechanism of US stocks offers a tax-efficient, implicit return. By reducing the number of outstanding shares, companies directly push up stock prices without increasing the tax burden on investors. Furthermore, the steady dividend growth of the S&P 500 index provides a solid cash flow foundation for long-term asset allocation. This dual-engine model of "buybacks + dividends" is an institutional advantage that many emerging market countries find hard to replicate.
USD Asset Allocation: A Natural Hedge Against Local Currency Depreciation
From the perspective of foreign exchange risk management, allocating to US stocks is equivalent to allocating to USD-denominated assets. For holders of Southeast Asian currencies like the Singapore dollar or Thai baht, USD asset allocation helps balance exchange rate risks. Although expectations for Fed policy in 2026 are changeable, the hegemonic status of the US dollar in global trade settlement and as a reserve currency cannot be shaken in the short term.
Amid complex international geopolitical situations, the US dollar often exhibits safe-haven properties during crises. Allocating a portion of assets to USD-denominated US stocks, especially leading ones with strong free cash flow, is like purchasing a "global macro risk insurance" for an investment portfolio. This is also the core reason why an increasing number of Southeast Asian family offices and high-net-worth individuals have been increasing their allocation to US stocks through channels like QDII or overseas brokers in recent years.
Conclusion: Seeking Long-Term Value Amid Divergence
Buffett's record cash reserves warrant caution; they remind us that even in the most prosperous markets, discipline and valuation still matter. But this doesn't mean we should stay away from US stocks. Why buy US stocks? Because it is the world's most dynamic, most innovative market, and the one best at converting innovation into investor profits.
For cross-border asset allocators, short-term valuation fluctuations and macro noise should not obscure the long-term allocation value of US stocks. By selecting industry leaders with global expansion capabilities, using ETF tools to diversify individual stock risks, and holding long-term to enjoy compound growth, US stocks remain an indispensable core cornerstone for building a globalized investment portfolio.
