Leon Cooperman warns of bull market euphoria stage
Billionaire investor Leon Cooperman stated that the U.S. stock market has reached the euphoric phase of the bull market warned about by Warren Buffett. In a recent interview, Cooperman highlighted signs of overexuberance among investors. He advised caution amid rising valuations.
Leon Cooperman, the founder and chairman of Omega Advisors, shared his concerns about the current state of the stock market during a CNBC interview on October 1, 2025. A former executive at Goldman Sachs, Cooperman manages about $3.3 billion in assets at his hedge fund. He explicitly referenced a warning from Warren Buffett, the legendary investor and Berkshire Hathaway CEO, who has long cautioned against market euphoria.
Cooperman said, 'We've reached the stage of the bull market that Warren Buffett warned about.' He pointed to Buffett's 2000 shareholder letter, where the Oracle of Omaha described the perils of excessive optimism, famously advising to 'be fearful when others are greedy and greedy when others are fearful.' Cooperman noted that today's market, with the S&P 500 up more than 20% year-to-date as of late September 2025, shows similar signs of exuberance, including heavy retail investor participation and elevated price-to-earnings ratios.
The bull market, which began in March 2020 following the COVID-19 crash, has been driven by technology stocks and artificial intelligence hype. Cooperman, known for his value investing approach, suggested that investors should focus on undervalued opportunities rather than chasing momentum. 'I'm not bearish, but I'm cautious,' he added, recommending sectors like energy and financials over high-growth tech names.
This perspective comes amid broader economic context, including cooling inflation and potential Federal Reserve rate cuts. Cooperman's comments echo Buffett's restraint; Berkshire Hathaway has held significant cash reserves, reportedly over $180 billion, signaling wariness about current valuations. While Cooperman does not predict an imminent crash, his remarks serve as a reminder of historical market cycles, such as the dot-com bubble burst in 2000.
Investors and analysts will likely monitor upcoming earnings reports and economic data for further signs of the bull market's trajectory. Cooperman's balanced view underscores the importance of discipline in volatile times.