- Stock Exchange drop Caused by President Donald Trump’s global tariffs have brought Warren Buffett’s investment moves over the past year in fresh light, highlighting his caution in the former bull market. His decision last year to shed most of Berkshire Hathaway Apple The actions now look especially well timed.
Berkshire Hathaway President’s investments and CEO Warren Buffett over the past year now seems not to be good in the wake of the melted place, caused by President Donald Trump’s global tariffs.
Only in the last two trading sessions did the S&P 500 collapse 10%, and the wide market index decreased by 17% from its peak since mid -February. Meanwhile, technologically heavy Nasdak And the small Russell 2000 hat is on the territory of bears after dropping more than 20% of their recent heights.
By Trump“Liberation Day”Wednesday’s publication, US stocks lost more than $ 6 trillion in the market cap in the worst sale of the early days of the Kovid-19 pandemic Wall Street prices in the US Tariff Recession.
But Buffett seems to predict a market drop comes. Berkshire sold $ 134 billion in capital in 2024 – when the bull market was still raging – and was sitting on a record $ 334 billion in cash at the end of the year. It is almost double the previous year and more than its reduction in the $ 272 billion stock portfolio.
The renowned values -oriented investor also complained for years that the values were too high and remained using their money for large acquisitions for lack of affordable prices.
Most of Berkshire’s cash are in short -term finance records, which not only offer shelter from the storm, but also provide the conglomerate proper profit that Buffett has seen in his latest Letter to shareholders.
“We have been aided by a predictable great profit in investment revenue, as the finance ministry’s duties have improved and we have significantly increased our possessions of these high-level short-term securities,” he wrote in February.
In addition to what he bought, he also sets out what he sold, given the market accident.
Last year, Berkshire reduced its share of Apple by about two -thirds, which is most of the company’s capital sales, although the iPhone manufacturer remains the largest stock holding.
Those sales of stocks, which came in the first three quarters of the year, also happened while Apple was still on the rise, with shares reaching the end of December.
But from that peak, Apple collapsed 28% as US tariffs for China are expected to be particularly difficult. This is because Apple, like many technology companies, relies on China for parts and production.
With Trump’s last round, imports from China are now facing a 54%duty. And if the administration is monitoring its threat to execute a “secondary tariff” of Venezuelan oil -buying countries, the rate can reach 79%.
Meanwhile, Berkshire was also Openation of stocks of the Bank of America and Citigroup. Shares of the two banking giants have dropped by about 22% so far this year.
In contrast, Berkshire’s Class B shares increased by 9% this year, though they took a modest hit last week. The wide range of its businesses, such as insurance, rail and energy, mainly focus on the United States and are less exposed to imports.
As a result, Buffett’s personal wealth has grown this year, unlike those of his peers. According to Bloomberg’s billionaires indexIts net value expanded by $ 12.7 billion this year to give him a total of $ 155 billion, putting him on the list 6 and essentially tied it to Bill Gates, whose own wealth fell by $ 3.38 billion.
Elon Musk remains number 1 with $ 302 billion, although it is a $ 130 billion reduction in 2025, followed by Effef Bezos with $ 193 billion, a decrease of $ 45.2 billion.
Since Buffett’s bumpers are waiting to see if the recent market accident will finally make him make a major acquisition or procurement of stocks, his letter in February may offer a term.
“Berkshire’s shareholders can be sure that we will deploy a significant majority of their money in capital forever – most US capital, though many of these will have international operations of importance,” he wrote. “Berkshire willNeverPrefer ownership of cash equivalent assets over good business ownership, whether they are controlled or only partially owned. “
This story was originally shown on Fortune.com
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