It looks like it’s Warren Buffett’s turn to say, “I told you so.” Late last year, the Berkshire Hathaway CEO was busy selling stocks when the S&P 500 logged more than 50 record closes, leading many market observers to scratch their heads.

Warren Buffett is commonly regarded as the one of the greatest investors in American history. After repurchasing Berkshire stock in 24 consecutive quarters, Buffett did not to buy back stock in the third and fourth quarters of 2024.

Such a precipitous increase in the value of U.S. equities has stirred up the usual cacophony of equity-bears screaming “bubble!” “Bubble” is a popular term, but, as it turns out, is rather ill-defined and fuzzy.

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Warren Buffett’s Berkshire Hathaway sold its entire position in the Vanguard S&P 500 ETF in the fourth quarter. The company also sold the only other index fund it held, another S&P 500 index fund. These funds track the S&P 500,