New Delhi: Stock markets across the globe suffered sharp fall on Monday, in the wake of fears that Trump’s policies on reciprocal tariffs may lead to recession.

Indian Domestic markets too witnessed massive bleeding on fears that Trump’s policies on reciprocal tariffs may lead to recession.

On one hand, while the market tailspin wiped out billions off investor’s kitty, there was Warren Buffet who came out unscathed of the market mayhem. What was the reason that the market bloodbath could not affect the investor billionaire as much as it did with other investors?

Buffett, who heads Berkshire Hathaway, escaped the chaos in the stock market and benefited from it. Tying with Bill Gates, Buffett’s net worth increased to $155 billion when he gained $12.7 billion.

Buffett sold $134 billion worth of assets in 2024 and moved to a record $334 billion cash pile, primarily in short-term US Treasury bills. This protected Berkshire during the market meltdown.

One of Buffett’s boldest decisions was to reduce Berkshire’s ownership of Apple by two-thirds. This was before the stock plummeted 28%, being hit by its exposure to China amid Trump’s tariffs. Additionally, he reduced his holdings in Citigroup and Bank of America, and both have had declines of more than 20% this year.

Buffett hinted at what was to come in his February letter to shareholders: “We were aided by a predictable large gain in investment income,” he wrote, according to Fortune, that rising T-bills yields were a safer option than overvalued stocks.

Currently, Berkshire Hathaway’s stocks are up 9 percent so far this year. Even though Trump’s tariff-driven trade war is raising increased fears of a recession and sparking one of the worst days for global wealth since the pandemic era, Berkshire Hathaway’s stock has increased. 

The company’s primary investments are in railroads, energy, and insurance. According to official documents, Berkshire’s holdings stand at: Mitsui & Co. (9.82%), Mitsubishi Corp. (9.67%), Sumitomo Corp. (9.29%), Itochu Corp. (8.53%), and Marubeni Corp. (9.30%). Buffett’s fortune has increased significantly as a result of this calculated investment. This has helped Berkshire Hathaway’s market capitalization overtake Tesla and reach over $1.14 trillion.

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