Following US President Donald Trump’s sweeping tariffs on 184 countries, global markets crashed with a $5 trillion wipeout, but savvy investor Warren Buffett emerged unhurt and richer. Buffet was the only billionaire among the world’s ten richest people to report gains, according to the Bloomberg Billionaires Index, while Elon Musk, Jeff Bezos, and Mark Zuckerberg all experienced significant declines in their fortune.
Global equities have plummeted since Trump’s tariff bombshell on Wednesday, plunging US markets to their lowest points since March 2020. The top 500 richest individuals lost a total of $536 billion, making it the fourth-worst single-day wealth wipeout in the 13-year history of the Bloomberg Billionaires Index.
Berkshire Hathaway CEO Buffett, meanwhile, has not only avoided the slaughter but benefited from it. He tied with Bill Gates with a net worth of $155 billion after gaining $12.7 billion. What is Warren Buffett’s strategy, then? He moved to a record $334 billion cash pile in 2024, primarily short-term US Treasury bills, after selling $134 billion worth of assets. Berkshire was protected by this during the market meltdown.
One of his more audacious actions was to reduce Berkshire’s ownership of Apple by two-thirds before the stock fell 28% due to its exposure to China as a result of Trump’s tariffs. Additionally, he reduced his holdings in Citigroup and Bank of America, both of which have had declines of more than 20% this year.
Buffett hinted at what was to come in his February letter to shareholders, writing, “We were aided by a predictably large gain in investment income,” according to Fortune. He said that rising T-bill rates were a safer option than overvalued stocks. Even though Trump’s tariff-led trade war stoked recession fears and set off one of the worst days for world wealth since the epidemic era, Berkshire Hathaway’s shares are now up 9% year-to-date. The company’s primary investments are in energy, insurance, and railroads.
According to sources, Buffett supported Trump’s tariff measures during the economic turmoil. According to Reuters, Berkshire Hathaway denied these allegations, stating that all of the assertions were untrue. Mr. Buffett stated that he had not yet commented on the tariffs and would hold off until May 3, when Berkshire’s annual shareholder meeting would take place.
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