How Buffett’s Investment Strategy Has Shifted in 2025?

In his letter to shareholders, Buffett said he is holding out for a sharp decline in the stock market before investing more of Berkshire’s $334.2 billion cash hoard. He thinks wild fluctuations in the market could occur soon, as they did in previous crashes, such as the dot-com bubble or the 2008 financial crisis. 

Some experts, like Bill Smead, think Buffett’s strategy means he is preparing for a major bear market. They advise investors to be ready for economic challenges, including inflation and financial instability. 

Despite selling $134 billion worth of stocks in 2024, Buffett still prefers owning businesses rather than holding too much cash. He has also warned that inflation and government spending could cause problems for the economy.