As global markets plummeted, resulting in a $5 trillion loss following US President Donald Trump’s sweeping tariffs on 184 countries, legendary investor Warren Buffett emerged unscathed and even wealthier. According to the Bloomberg Billionaires Index, Buffett was the only billionaire among the world’s top 10 richest individuals to see gains, while Elon Musk, Jeff Bezos, and Mark Zuckerberg suffered significant declines in their net worth.
Since Trump’s tariff announcement on Wednesday, global stocks have sharply declined, dragging US markets to their lowest levels since March 2020. This marked the fourth-worst single-day wealth loss in the 13-year history of the Bloomberg Billionaires Index, with the top 500 richest people collectively losing $536 billion.
However, Buffett, the head of Berkshire Hathaway, not only avoided the downturn but also profited from it. His net worth increased by $12.7 billion, reaching $155 billion—tying him with Bill Gates.
So, what is Warren Buffett’s strategy? In 2024, he sold $134 billion in stocks and shifted to a record $334 billion cash reserve, primarily invested in short-term US Treasury bills. This move shielded Berkshire Hathaway during the market crash.
One of his boldest decisions was reducing Berkshire’s stake in Apple by two-thirds before the stock fell 28%, impacted by its exposure to China amid Trump’s tariffs. He also trimmed positions in Bank of America and Citigroup, both of which have declined over 20% this year.
In his February shareholder letter, Buffett hinted at his approach, stating, "We were aided by a predictable large gain in investment income," as reported by Fortune. He emphasized that rising yields on Treasury bills were a safer alternative to overpriced equities.
Despite Trump’s tariff-driven trade war sparking recession fears and triggering one of the worst days for global wealth since the pandemic, Berkshire Hathaway’s shares have risen 9% year-to-date. The company’s core investments are in railroads, energy, and insurance.
Amid the economic turmoil, reports suggested that Buffett endorsed Trump’s tariff policies. However, Berkshire Hathaway denied these claims, stating that all such reports were false, according to Reuters. Buffett clarified that he had not commented on the tariffs and would refrain from doing so until Berkshire’s annual shareholder meeting on May 3.
Stay updated with the latest news by visiting ZTC News and ZNews Today for comprehensive coverage and updates.