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Buffett’s Savvy Moves: Billionaire’s Wealth Grows Amid Market Turmoil Triggered by Trump Tariffs
In a year marked by economic uncertainty and stock market volatility, Warren Buffett demonstrated astute financial maneuvering, emerging as the sole billionaire among the world’s wealthiest individuals to witness an increase in net worth. This growth occurred even as President Donald Trump’s recently imposed tariffs sent shockwaves through global markets.
Trump’s Tariffs Trigger Global Market Declines
President Trump’s announcement last week of a ‘baseline’ 10 percent tariff on imports from various nations, an initiative he termed ‘Liberation Day,’ has had significant repercussions on the global financial landscape.
Since the tariff announcement, a staggering $6.6 trillion has been erased from the valuation of U.S. equities. Wall Street experienced its most precipitous two-day slump in recent history, reflecting investor anxiety and market instability.
This financial downturn has impacted everyday Americans, eroding retirement funds, including 401(k) plans that are intrinsically linked to market performance. Notably, the vast majority of the world’s richest individuals have not been immune to these losses; approximately 90 percent of billionaires tracked by the Bloomberg Billionaires Index have seen their personal fortunes diminish.
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Buffett’s Contrarian Strategy Pays Off
In stark contrast to this widespread wealth contraction, Warren Buffett’s assets have surged by $12.7 billion since the beginning of the year. This increase is attributed to his strategic approach over the past year, characterized by substantial stock divestments and the accumulation of cash reserves.
Tech Titans Among Those Hit by Market Downturn
Among those experiencing considerable financial losses is Elon Musk, a known ally of President Trump. Musk’s net worth plummeted by $31 billion amidst the tariff implementation and concurrent protests at Tesla showrooms, triggered by his perceived alignment with federal policies.
The SpaceX founder has witnessed an overall decline in his fortune by $130 billion in 2025 alone, highlighting the severity of the current economic climate on even the wealthiest individuals.
Jeff Bezos, another business magnate who has recently engaged with the president, also suffered significant financial setbacks. Reports indicate that $23.5 billion of his assets were wiped out on Thursday and Friday alone.
Warren Buffett stands out as the only billionaire whose net worth has increased amidst recent market volatility, despite President Trump’s tariffs.
Bezos’ financial downturn continued into Monday, with an additional $7.59 billion loss, bringing his total losses for the year to $45.2 billion.
Similarly, Meta CEO Mark Zuckerberg experienced a $27 billion reduction in his wealth as Meta stock values decreased by almost 14 percent over a two-day period.
Collectively, the world’s 500 richest individuals have seen a staggering $536 billion disappear from their accounts, with Friday alone accounting for a substantial $32.9 billion. This single-day loss represents the most significant since the peak of the COVID-19 pandemic, according to reports.
Buffett’s Strategic Portfolio Adjustments
In September, Buffett, aged 94, divested 150 million shares of Bank of America. This move was notable as Bank of America had been a long-favored investment for the financier over the preceding seven years and Berkshire Hathaway was the bank’s largest individual shareholder.
Buffett also sold off shares of Apple. These combined transactions increased Berkshire Hathaway’s cash reserves to a record $325 billion, an amount sufficient to acquire nearly all but the top 25 U.S. companies.
By February, Buffett further reduced Berkshire Hathaway’s equity holdings by liquidating billions of dollars worth of stock in DaVita, a prominent dialysis service provider.
Later in February, Berkshire Hathaway completely liquidated its shares in two exchange-traded funds (ETFs) managed by major investment firms Vanguard and State Street Global Advisors.
ETFs are investment instruments comprising a portfolio of stocks or bonds that track a specific market index, such as the S&P 500, Nasdaq, or Dow Jones. The S&P 500 is a benchmark index representing 500 of the largest publicly traded companies in the United States.
Jeff Bezos experienced a significant wealth reduction, while Elon Musk’s net worth also sharply declined amid tariff concerns and ongoing protests.
The S&P 500 index experienced a decline, closing more than 12 percent lower compared to the previous month.
Each of Berkshire Hathaway’s ETF holdings was valued at approximately $22 million and were divested during the fourth quarter of 2024, as reported by the Financial Times.
More recently, indications suggest that the “Oracle of Omaha” is considering reducing his real estate holdings.
Compass, the nation’s largest real estate brokerage, reportedly held advanced discussions last month to purchase Berkshire Hathaway’s HomeServices of America, a major player ranking fourth in the real estate industry, according to sources at The Wall Street Journal.
Focus Shift to Japanese Markets
Concurrently, Berkshire Hathaway has strategically directed investment towards Japan. In February, Buffett informed shareholders of his intention to further increase the firm’s holdings in five prominent Japanese trading conglomerates: Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo.
The ultimate impact of President Trump’s tariffs on Japan remains uncertain. The U.S. president has imposed a broad 24 percent tariff on goods from the Asian nation.
Japan’s Nikkei 225 index, a key market indicator, closed nearly 8 percent lower than on Friday, while the broader Topix index concluded trading down 7.7 percent, illustrating the market disruption.
Market instability is anticipated to persist as tariffs are scheduled to take effect in numerous other countries on Wednesday, including a 20 percent tariff on goods from the European Union and 34 percent on Chinese imports.
Amidst the economic uncertainty, President Trump shared a video portraying the tariffs as a ‘genius’ financial strategy.
Economists Warn of Potential Recession
Growing numbers of economists are expressing concerns about a potential global economic downturn. Betting markets currently indicate a 62 percent probability of the U.S. economy entering a recession this year.
The likelihood of a recession significantly increased following President Trump’s tariff announcement last Wednesday. Predictions of a U.S. recession escalated from 39 percent to 49 percent based on Polymarket data.
By Sunday, recession probabilities reached a peak of 66 percent, signifying a two in three chance of an impending economic recession.
Controversial Video Claims and Buffett’s Rebuttal
Amidst the economic turbulence, President Trump disseminated a fan-produced video presenting the tariffs as a ‘genius chess move,’ purportedly designed to enable the U.S. to cheaply refinance trillions of dollars of national debt.
The video further claimed that President Trump intends to intentionally trigger a 20 percent stock market decline this month to weaken the dollar and reduce mortgage rates as a strategic maneuver.
However, claims within the video suggesting that this contentious strategy has the endorsement of Warren Buffett were promptly refuted by the seasoned investor.
Buffett Denies Endorsement of Market Manipulation Theory
Buffett issued a formal denial through his firm, Berkshire Hathaway, on Friday. The video has subsequently received a community note on social media platforms, including Twitter, providing clarifying context.
“Reports are circulating on social media (including Twitter, Facebook and TikTok) regarding comments allegedly made by Warren E. Buffett. All such reports are false,” the official Berkshire Hathaway statement clarified.
Buffett informed CNBC that he would reserve public commentary on the administration’s economic agenda until Berkshire Hathaway’s annual meeting scheduled for May 3.
Buffett has previously criticized President Trump’s tariff policies, characterizing tariffs as a form of economic “warfare.”
“Tariffs are, we have extensive historical experience with them,” Buffett stated in a prior CBS News interview. “To some extent, they constitute an act of war.”
“Ultimately, tariffs are a levy on consumers. It is not an external entity that bears the cost.”