While Buffett has long warned against timing the market, he has also urged investors to keep a close eye on valuations. If there isn't an obvious investment worth making, sitting on cash could be the wisest decision. Indeed, that's exactly what Buffett has done in recent years, leaving the firm with a huge cash pile upon his exit.

Berkshire Hathaway's $1 billion homebuilding investment indicates Warren Buffett's confidence in a future U.S. housing market rebound.

Berkshire Hathaway's post-Buffett era faces strategic uncertainty, limited growth catalysts, and underperformance. Click to read more on why BRK.A is rated Hold.