Everyone’s Chasing Tech—Buffett’s Doing the Opposite
As technology stocks soar to record highs, Warren Buffett remains cautious. The Nasdaq index hit new peaks in the third quarter of 2025, fueled by enthusiasm for artificial intelligence and other advanced technologies. Yet, when investor excitement becomes concentrated in one area, Buffett tends to step back.
Lessons from the Past
During the height of the dot-com boom in 1999, Buffett made it clear that Berkshire Hathaway Inc. (BRK.A, BRK.B) held no internet-related shares. The reason wasn’t lack of interest but the inability to evaluate their future economics accurately.
“An investor should stay well within one’s circle of competence,” Buffett wrote, warning against being “where the action is.”
That disciplined approach appears to guide his decisions again today. After the dot-com crash, Buffett said that investing in fast-evolving industries often means engaging in speculation—something that doesn’t align with his value-driven style.
Focus on Stability
Instead of following market momentum, Berkshire Hathaway has preserved a large cash reserve and focused heavily on the U.S. market. In his 2023 letter to shareholders, Buffett referred to this approach as “extreme fiscal conservatism.” By 2025, the company’s cash holdings hit a record level.
International Strategy
Meanwhile, Buffett has gradually expanded his investments in Japanese conglomerates. In his 2024 letter, he framed this decision as part of a long-term strategy—a clear rejection of short-term trend chasing.
Author’s Summary
Warren Buffett’s restraint in the face of tech euphoria underscores his timeless philosophy: avoid speculation, stay within one’s expertise, and think long term.