After Warren Buffett sold $134 billion in equities in 2024 and is sitting on a $334 billion cash pile, one analyst said the “Oracle of Omaha” saw the current selloff coming. While it’s unlikely Buffett will make any big moves during the current market turmoil, some think he’ll look internationally or round out his insurance business.
Amid the stock market selloff, Berkshire Hathaway CEO Warren Buffett’s recent capital movements suggest he was preparing for it, according to an analyst.
After tumbling more than 10% from its last peak, the Nasdaq remains in correction territory. The S&P 500 also entered a correction, though Friday’s rally pared its decline to less than 10% from its all-time record.
That has highlighted Berkshire’s recent cash hoarding as especially prescient. When asked if Buffett saw the selloff coming, Armando Gonzalez, founder of AI-powered research platform Bigdata.com, said the evidence suggests he did.
“Buffett’s actions over the past year have been a textbook example of positioning for turbulence,” he said in an emailed response to questions from Fortune.
Berkshire sold $134 billion in equities in 2024, ending the year with a cash pile of $334.2 billion—nearly double from a year ago and more than its shrinking stock portfolio of $272 billion.
Gonzalez also noted that Buffett’s recent comments have been riddled with caution, emphasizing inflationary concerns and geopolitical uncertainty. For example, he warned that President Donald Trump’s tariffs will cause prices to rise.
“History shows when Buffett turns net seller, he often anticipates a period of subpar market performance,” Gonzalez said. “And once again, the Oracle of Omaha seems to have been ahead of the curve.”
With stocks well off their highs, that begs the question: will the famously value-conscious Buffett start deploying his cash by making some big purchases?
To be sure, Berkshire has made some moderate stock buys. But preferring bargains, Buffett historically looks to invest heavily in companies when valuations are low. During the peak of the 2008 financial crisis, for instance, Buffett deployed $3 billion into General Electric whose stock price had nosedived.
In his latest letter to Berkshire shareholders, Buffett reiterated his years-long view that valuations remained high.
Gonzalez said it’s possible Buffett could start buying but only if true bargains emerge, noting that his track record shows a deep aversion to haste, even when markets tumble.
“He has no interest in timing the market’s bottom, nor does he chase short-term rebounds,” he said. “Instead, he waits for moments when fear drives prices to levels where the risk-reward equation tilts decisively in his favor.”
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