Last year, Warren Buffett was criticized and mocked for sitting on a mountain of cash while markets surged. However, now, with stocks tumbling and recession fears mounting, the "Oracle of Omaha" suddenly looks like the only one who saw it coming.
What Happened: Berkshire Hathaway sold a staggering $134 billion worth of stocks in 2024 — and barely touched the cash.
Buybacks were paused entirely in the second half, leaving Buffett's firm with a record-breaking $334 billion cash reserve by year's end. At the time, critics questioned his reluctance to reinvest as the S&P 500 logged two consecutive years of 20%+ gains.
Now, those same critics are eating their words.
Buffett slashed his Apple Inc. stake from 49% to just 23% of Berkshire's portfolio and reduced holdings in Bank of America. Weeks later, markets began to unravel.
The Nasdaq 100 dropped 8.83% in just 18 days, while JPMorgan stock — sold by CEO Jamie Dimon in a $234 million February trade — tumbled more than 9.6%.
The Internet Is Paying Attention:
"There is only one billionaire in the top 10 whose net worth increased today: Warren Buffett," posted X user Dan Stone, sharing a screenshot of showing Buffett being the only one whose net worth increased by $607 million on March 10, 2025, amid a broader market decline
Another chimed in: "Just remember, there was a reason why Warren Buffett went $$340 billion cash. He knew."
Here are some other reactions:
On Threads, the reaction was even sharper. "Funny how just days before the recent stock market crash, Warren Buffett cashed out $334 billion in stocks," wrote one user. "Meanwhile, JPMorgan CEO Jamie Dimon also sold hundreds of millions in shares. Coincidence? Or do they know something we don't?"
Another said, "Warren Buffett always knows when the collapse is coming because he's the first person they call when they need someone to bail them out."
Why It Matters: Economic uncertainty is growing, with President Donald Trump referring to the current state as "a period of transition" when asked about the likelihood of a recession.
Meanwhile, warning signs from the bond market are flashing, as investors increasingly favor short-term Treasuries amid expectations of interest rate cuts by the Federal Reserve.
Buffett has voiced sharp criticism of tariffs, calling them "an act of war" and equating them to a hidden tax on consumers. Analysts at Goldman Sachs have cautioned that a 5% hike in tariffs could slash corporate earnings by 1–2%, potentially leading to a 5% drop in the S&P 500.
Still, Buffett remains optimistic about the future of U.S. businesses, reaffirming his confidence by saying, "A majority of any money I manage will always be in the United States."
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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