When inflation surged two years ago, billionaire investor Stanley Druckenmiller predicted it would decline—a forecast he got right. However, his concern over the economy proved unfounded. Now, Druckenmiller admits to shifting priorities, expressing more worry about inflation than economic growth. He cautions that the Federal Reserve may have declared victory over inflation prematurely.

Despite his tempered confidence, Druckenmiller is making significant investment moves. His firm, Duquesne Family Office, recently acquired 1.4 million shares of Teva Pharmaceutical (TEVA), worth $30.3 million. Teva’s stock doubled in 2024 following a favorable opioid litigation settlement and strategic growth in brand-name drugs.

By Q3 2024, Duquesne Family Office’s top holdings included Natera ($452 million), Coupang ($287 million), Coherent ($264 million), Woodward ($181 million), and Seagate Technology ($179 million). Druckenmiller also shed more than $2.5 billion in stocks last year, including Nvidia and nearly all of Palantir, signaling a significant portfolio reshuffle.

In an interview with Nicolai Tangen of Norges Bank Investment Management, Druckenmiller revealed his main concern: whether the Federal Reserve has cut interest rates too soon. As he continues to adapt to evolving economic conditions, Druckenmiller remains a key player to watch in the financial world.