Legendary investor does it again after hoarding $300 billion in cash

Warren Buffett has become the only mogul among the world’s 10 richest whose net worth has risen this year despite a market sell-off.

Warren Buffett’s move last year to sell stocks and hoard some $USD300 billion ($A501 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 sell-off 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, Mr Buffett is the only one who has seen his net worth rise since January 1, the New York Post reports.

The Berkshire Hathaway boss’ wealth increased by $US12.7 billion ($A21.2 billion) during that period.

Warren Buffett is the only mogul among the world’s 10 richest whose net worth has risen this year. Picture: Johannes Eisele/AFP

Mr Buffett’s strategy insulated him and other Berkshire shareholders from the turmoil that has engulfed the markets in the wake of Mr Trump’s surprise tariff announcement.

From the opening bell on Thursday to Friday’s close, the S&P 500 sank 10.5 per cent, while the tech-heavy Nasdaq Composite plummeted 11.4 per cent, triggering widespread losses among the ultra-wealthy.

In total, $US536 billion ($A895 billion) was wiped from their combined net worths, with Friday alone accounting for a staggering $US329 billion ($A549 billion) – the largest single-day loss since the height of the COVID-19 market crash in 2020.

Nearly 90 per cent of the billionaires tracked by the index saw their fortunes shrink on Friday, with an average decline of 3.5 per cent.

Topping the list of losses was Tesla CEO Elon Musk, whose net worth plunged $US31 billion ($A52 billion) as Tesla shares tumbled over 10 per cent on Friday. The latest hit brings Mr Musk’s 2025 losses to an eye-watering $US130 billion ($A217 billion).

Elon Musk’s net worth plunged $31 billion as Tesla shares tumbled over 10 per cent on Friday. Picture: AP/Matt Rourke

Meta Platforms CEO Mark Zuckerberg wasn’t far behind, watching $US27 billion ($A45 billion) evaporate from his fortune as Meta stock slumped nearly 14 per cent over the two days.

In a year marked by soaring valuations and a frenzied stock market, Mr 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 — signalling his deep scepticism 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 — totalling $US334 billion ($A558 billion) before liabilities.

Turmoil has engulfed the markets in the wake of Donald Trump’s surprise tariff announcement. Picture: Saul Loeb/AFP

After subtracting $12.8 billion ($A21 billion) in payables for Treasury bill purchases, the figure still stood at a staggering $321 billion ($A536 billion).

That’s more than the market capitalisation of Coca-Cola, one of Mr Buffett’s most beloved long-term holdings.

That cash pile now represents roughly one-third of Berkshire’s $US1 trillion ($A1.7 trillion) market value, underscoring just how reluctant Mr Buffett was to buy in a market he clearly viewed as overheated.

Instead of aggressively investing, Mr Buffett and his team spent the year quietly offloading stocks — a dramatic shift from their previous posture. In 2024, Berkshire sold $US143 billion ($A239 billion) worth of shares, more than triple the $US41 billion ($A68 billion) sold in 2023, and over four times the $US34 billion ($A57 billion) in 2022.

Traders work on the floor of the New York Stock Exchange (NYSE) on April 07, 2025 in New York City. Picture: Spencer Platt/Getty/AFP

After accounting for just $US9 billion ($A15 billion) in stock purchases – down from $US16.5 billion in 2023 and $68 billion ($A113 billion) in 2022 – Berkshire’s net stock sales for the year amounted to $134 billion. Even longtime holdings weren’t spared.

Mr 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 $US26.8 billion ($A45 billion) in corporate income tax to the IRS in 2024, which Mr Buffett said was “the largest amount ever paid by any US company.”

This article originally appeared in the New York Post and has been reproduced with permission.

Originally published as Legendary investor does it again after hoarding $300 billion in cash