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Investing.com -- Warren Buffett’s recent financial moves suggest he may have anticipated the current market selloff.
A report from Fortune on Thursday highlighted that the Berkshire Hathaway (NYSE:BRKa) CEO offloaded $134 billion in equities in 2024, ending the year with a massive $334 billion cash pile—nearly double from a year earlier and exceeding the company’s shrinking stock portfolio.
“Buffett’s actions over the past year have been a textbook example of positioning for turbulence,” Armando Gonzalez, founder of Bigdata.com, told Fortune.
The Nasdaq remains in correction territory after falling more than 10% from its peak, while the S&P 500 also entered correction before Friday’s rally pared losses to just under 10%, said Fortune.
In light of these declines, Buffett’s cash hoarding appears especially well-timed.
Gonzalez is said to have noted that Buffett’s recent comments have reflected caution, emphasizing inflation concerns and geopolitical risks, including warnings that tariffs imposed by President Donald Trump will drive prices higher.
“Gonzalez also reportedly told Fortune that history shows when Buffett turns into a net seller, he often anticipates a period of subpar market performance.
While Buffett has made some stock purchases, his history suggests he prefers to wait for deep discounts before making major moves, with Gonzalex adding that he has no interest in timing the market’s bottom and he does chase short-term rebounds.
With valuations still not “dirt cheap,” CFRA Research’s Cathy Seifert is said to have told Fortune that Buffett may wait longer, though she wouldn’t be surprised if Berkshire expands its insurance holdings.