Billionaires Are Losing Wealth, But Warren Buffett Is Getting Richer — Here’s Why
Written by
Sean Bryant
Edited by
Rebekah Evans
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The first few months of 2025 have been rocky for all Americans, from the rising price of groceries to the plummeting stock market. Following the announcement of tariffs on April 8, the S&P 500 closed 18.9% below the high recorded on Feb. 19, according to Reuters. Hesitancy surrounding tariffs sparked widespread selloffs, causing major losses for billionaires with substantial holdings in the stock market.
However, Warren Buffett has not only weathered the storm but has also emerged wealthier. In this article, we’ll explore why Warren Buffett is getting richer while other billionaires struggle to preserve their wealth.
Buffett’s Wealth Preservation Strategy
Warren Buffett, the CEO of Berkshire Hathaway, has seen his net worth grow by $11.5 billion since the start of 2025. Contrast this with other well-known billionaires, like Elon Musk, who lost $135 billion following tariff announcements and Buffett seems to have a good plan for navigating uncertain markets.
Buffett and Berkshire Hathaway have been eliminating market risk for the past year. In 2024, CNN reported that Berkshire Hathaway sold more than 600 million of its shares in Apple and several billion dollars of Bank of America stock. The excess cash generated from these sales and others was not reinvested in the market. Instead, Berkshire Hathaway is sitting on over $334 billion in cash. For reference, this is enough cash to purchase 95% of the S&P 500.
What’s Next?
Buffett’s recent strategy of selling investments and holding cash seems to contrast his core value of investing for the long term. However, with the S&P 500 returning 23.31% in 2024 and 24.23% in 2023, according to The Motley Fool, countless economists predicted a volatile 2025 market. Buffett’s cash-conserving approach seemed to fare well in the first few months of 2025. Buffett now sits at number five on Forbes’ wealthiest billionaire’s list.
While there’s no telling when Buffett will switch his investment strategy, we can learn a few lessons. For one, having a diversified portfolio has helped Berkshire Hathaway stay steady during volatile markets. Buffett only invests in companies that he is highly confident in and usually invests for at least one year. Additionally, taking a conservative approach can be beneficial for preserving your wealth.
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