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Final yr, Warren Buffett was criticized and mocked for sitting on a mountain of money whereas markets surged. Nonetheless, now, with shares tumbling and recession fears mounting, the “Oracle of Omaha” immediately appears to be like like the one one who noticed it coming.
What Occurred: Berkshire Hathaway bought a staggering $134 billion price of shares in 2024 — and barely touched the money.
Buybacks have been paused solely within the second half, leaving Buffett’s agency with a record-breaking $334 billion money reserve by yr’s finish. On the time, critics questioned his reluctance to reinvest because the S&P 500 logged two consecutive years of 20%+ beneficial properties.
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Now, those self same critics are consuming their phrases.
Buffett slashed his Apple Inc. stake from 49% to simply 23% of Berkshire’s portfolio and decreased holdings in Financial institution of America. Weeks later, markets started to unravel.
The Nasdaq 100 dropped 8.83% in simply 18 days, whereas JPMorgan inventory — bought by CEO Jamie Dimon in a $234 million February commerce — tumbled greater than 9.6%.
The Web Is Paying Consideration:
“There is just one billionaire within the high 10 whose internet price elevated right this moment: Warren Buffett,” posted X person Dan Stone, sharing a screenshot of exhibiting Buffett being the one one whose internet price elevated by $607 million on March 10, 2025, amid a broader market decline
One other chimed in: “Simply bear in mind, there was a motive why Warren Buffett went $$340 billion money. He knew.”
Listed below are another reactions:
On Threads, the response was even sharper. “Humorous how simply days earlier than the current inventory market crash, Warren Buffett cashed out $334 billion in shares,” wrote one person. “In the meantime, JPMorgan CEO Jamie Dimon additionally bought a whole bunch of tens of millions in shares. Coincidence? Or do they know one thing we do not?”
One other mentioned, “Warren Buffett all the time is aware of when the collapse is coming as a result of he is the primary particular person they name after they want somebody to bail them out.”
Why It Issues: Financial uncertainty is rising, with President Donald Trump referring to the present state as “a interval of transition” when requested in regards to the probability of a recession.
In the meantime, warning indicators from the bond market are flashing, as traders more and more favor short-term Treasuries amid expectations of rate of interest cuts by the Federal Reserve.
Buffett has voiced sharp criticism of tariffs, calling them “an act of battle” and equating them to a hidden tax on customers. Analysts at Goldman Sachs have cautioned {that a} 5% hike in tariffs might slash company earnings by 1–2%, probably resulting in a 5% drop within the S&P 500.
Nonetheless, Buffett stays optimistic about the way forward for U.S. companies, reaffirming his confidence by saying, “A majority of any cash I handle will all the time be in the US.”
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Disclaimer: This content material was partially produced with the assistance of AI instruments and was reviewed and printed by Benzinga editors.
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