Warren Buffett, the billionaire chairman of Berkshire Hathaway, is waiting for a significant downturn in stocks before unleashing his vast cash hoard. According to Bill Smead, a veteran value investor and long-time observer of Buffett, this is evident from Buffett’s annual letter to investors.
Buffett’s letter did not offer much guidance on investments, but it did convey that he sees “nothing compelling” for buying opportunities. Instead, Berkshire continues to add to its cash reserves. Smead believes that Buffett is prepared for “wild swings” in stock values, indicating a potential shift from his long-term buy-and-hold strategy.
Buffett’s cautious approach suggests that investors should be prepared for market volatility and consider a more conservative investment strategy. As the market waits for signs of weakness, it remains to be seen when Buffett will deploy his cash hoard.
Source: https://www.marketwatch.com/story/warren-buffetts-waiting-for-a-wild-swing-to-the-downside-for-stocks-says-veteran-berkshire-watcher-91a1bd9c