Warren Buffett’s move last year to sell stocks and hoard some $300 billion in cash is looking prescient — as he’s the only mogul among the world’s 10 richest whose net worth has risen this year despite a market selloff triggered by President Trump’s tariffs.
In a historic two-day rout last week, the world’s 500 wealthiest individuals have collectively lost more than half a trillion dollars, marking the steepest loss ever recorded on the Bloomberg Billionaires Index.
Among the 10 richest people in the world, Buffett is the only on who has seen his net worth rise since Jan. 1. The Berkshire Hathaway boss’ wealth increased by $11.5 billion during that period.
Buffett’s strategy insulated him and other Berkshire shareholders from the turmoil that has engulfed the markets in the wake of Trump’s surprise tariff announcement.
From the opening bell on Thursday to Monday’s close, the S&P 500 sank 10.7%, while the tech-heavy Nasdaq Composite plummeted 11.3%, triggering widespread losses among the ultra-wealthy.
In total, more than $500 billion was wiped from their combined net worths, with Friday alone accounting for a staggering $329 billion — the largest single-day loss since the height of the COVID-19 market crash in 2020.
Nearly 90% of the billionaires tracked by the index saw their fortunes shrink on Friday, with an average decline of 3.5%.
Topping the list of losses was Tesla CEO Elon Musk, whose net worth plunged $31 billion as Tesla shares tumbled over 10% on Friday. Musk lost an additional $4.4 billion on Monday — bringing his total losses accumulated over the last three trading days to an eye-watering $135 billion.
Meta Platforms CEO Mark Zuckerberg wasn’t far behind, watching $27 billion evaporate from his fortune as Meta stock slumped nearly 14% over Thursday and Friday. The stock gained more than 2.28% on Monday — inflating Zuckerberg’s net worth by an additional $3 billion.
In a year marked by soaring valuations and a frenzied stock market, Buffett chose caution over action.
The legendary investor spent 2024 pulling back on stock purchases, paring down Berkshire Hathaway’s portfolio and accumulating unprecedented levels of cash — signaling his deep skepticism about the price tags attached to both public companies and private businesses.
Berkshire Hathaway ended the year with an enormous stash of cash and cash-equivalent assets — totaling $334 billion before liabilities.
After subtracting $12.8 billion in payables for Treasury bill purchases, the figure still stood at a staggering $321 billion.
That’s more than the market capitalization of Coca-Cola, one of Buffett’s most beloved long-term holdings.
That cash pile now represents roughly one-third of Berkshire’s $1 trillion market value, underscoring just how reluctant Buffett was to buy in a market he clearly viewed as overheated.
Instead of aggressively investing, Buffett and his team spent the year quietly offloading stocks — a dramatic shift from their previous posture. In 2024, Berkshire sold $143 billion worth of shares, more than triple the $41 billion sold in 2023, and over four times the $34 billion in 2022.
After accounting for just $9 billion in stock purchases — down from $16.5 billion in 2023 and $68 billion in 2022 — Berkshire’s net stock sales for the year amounted to $134 billion.
Even longtime holdings weren’t spared.
Buffett trimmed positions in Apple and Bank of America — two of Berkshire’s largest investments.
All this strategic repositioning came with an eye-popping tax bill. Berkshire paid $26.8 billion in corporate income tax to the IRS in 2024, which Buffett said was “the largest amount ever paid by any US company.”
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