Suddenly thought of Buffett continuously reducing his positions in US stocks and holding large amounts of cash. Many people believe this means he’s not optimistic about the US stock market, but I don’t see it that way.

Let’s look at it from another perspective:

If AI is a bubble, then when the stock market crashes, Buffett will buy the dip.

If AI is not a bubble, then 99% of companies will be replaced, and 99% of the world’s profits will be generated by 1% of AI companies. In the US, some special effects companies and advertising companies have already gone bankrupt due to AI, and next it will be Buffett’s value stocks. Buffett is taking profits at the historical peak.

Perhaps in reality, 70% of regions will experience the former, and 30% will experience the latter. In any case, this decision is correct.