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Warren Buffett, who stepped down as CEO of Berkshire Hathaway last month to become chairman emeritus, is maintaining a defensive posture amid a surge in artificial intelligence valuations.
The conglomerate is holding a $365.5 billion cash reserve, a position that allows it to pursue acquisitions if the market experiences a downturn.
This strategy contrasts sharply with the recent performance of AI infrastructure stocks, which have seen exponential gains driven by demand for data center equipment.
The S&P 500 has delivered an average annual return of 23% between 2022 and 2025, a period marked by optimism regarding generative AI. This rally has propelled specific AI-related stocks to record heights.
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