Markets Bleed, Billionaires Lose Wealth, But Warren Buffett Emerges Richer

As global markets tanked with a $5 trillion wipeout following US President Donald Trump's sweeping tariffs on 184 countries, ace investor Warren Buffett came out unscathed and richer. According to the Bloomberg Billionaires Index, Buffet was the only billionaire among the 10 richest persons in the world to post gains while Elon Musk, Jeff Bezos, and Mark Zuckerberg saw their wealth take major blows.

Since Trump's tariff bombshell on Wednesday, global stocks have nosedived, dragging the US markets to their lowest levels since March 2020. It marked the fourth-worst single-day wealth wipeout in the Bloomberg Billionaires Index's 13-year history, with the top 500 richest people losing a combined $536 billion. 

Yet Buffett, who leads Berkshire Hathaway, has not only dodged the carnage but also profited from it. He gained $12.7 billion, bringing his net worth to $155 billion - tying with Bill Gates.

So, what is Warren Buffett's gameplan? In 2024, he sold $134 billion in stocks and shifted to a record $334 billion cash pile, mostly in short-term US Treasury bills. This shielded Berkshire when markets crashed.

One of his boldest moves was cutting Berkshire's Apple stake by two-thirds before the stock dropped 28 per cent, hurt by its China exposure amid Trump's tariffs. He also trimmed positions in Bank of America and Citigroup, both down over 20 per cent this year.

In his February shareholder letter, Buffett hinted at what was coming: "We were aided by a predictable large gain in investment income," he wrote, as per Fortune, saying the rising yields on T-bills were a safer alternative to overpriced equities.

Now, Berkshire Hathaway's shares are up 9 per cent year-to-date despite Trump's tariff-led trade war raising recession fears and triggering one of the worst days for global wealth since the pandemic era. The company's core investments are in railroads, energy, and insurance.

Amid the economic upheaval, reports suggested that Buffett endorsed Trump's tariff policies. Berkshire Hathaway refuted these claims, saying all such reports were false, as per Reuters. Mr Buffett said he had not made any comments regarding the tariffs and would refrain from doing so until Berkshire's annual shareholder meeting on May 3.

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