Buffett's Bet On Cash Pays Off As Tariffs Wipe £400 Billion From Other Billionaires' Wealth

Warren Buffett, the legendary investor dubbed the Oracle of Omaha, is sitting pretty atop a £240 billion ($306 billion) cash pile as global markets reel from tariff-induced chaos.

On 7 April 2025, as reported by the New York Post, Buffett's decision to sell stocks and hoard cash over the past year proved prescient, shielding his Berkshire Hathaway empire while the world's 500 wealthiest individuals saw a staggering £400 billion wealth ($511 billion) evaporate in mere days.

With Donald Trump's sweeping tariffs igniting a trade war, Buffett's cautious strategy has turned heads—and sparked debate. Is this the masterstroke of a genius or just impeccable timing?

A Cash Fortress in a Market Storm

Buffett's been playing it safe, and it's paying off. Berkshire Hathaway, his sprawling conglomerate, sold a net £105 billion ($134 billion) in stocks last year, ballooning its cash reserves to a record £240 billion ($306 billion) by early 2025, according to its latest filings.

While Wall Street chased sky-high valuations, Buffett was quietly stepping back, slashing stakes in giants like Apple and banking the proceeds. Then came Trump's tariff bombshell on 2 April 2025: a 25% levy on imports from Canada and Mexico, followed by a 10-54% range on others, per the New York Post.

Markets tanked, with the S&P 500 plunging nearly 10.7% from its February peak. The fallout? A £4 trillion ($5 trillion) wipeout across US stocks in two days, per Dow Jones Market Data. Tech titans like Elon Musk and Jeff Bezos saw their fortunes shrink fast.

Tariffs: 'An Act of War' Buffett Saw Coming

Buffett's no fan of tariffs. In a rare CBS interview on 2 March 2025, he called them 'an act of war, to some degree,' warning they're 'a tax on goods—the Tooth Fairy doesn't pay 'em!'. Trump's latest moves, targeting everything from Mexican cars to Chinese tech, proved him right.

Retaliation followed: China slapped 34% duties on US goods, and Canada threatened £120 billion ($153 billion) in countermeasures. The result? Inflation fears spiked, and stocks cratered.

Buffett's been prepping for this. His cash hoard, largely parked in Treasury bills, offers flexibility while others scramble. Flash back to 2008: during the financial crisis, Buffett deployed £20 billion ($26 billion) across five deals, snapping up bargains.

Today, with Apple and Bank of America down over 15% in days, is he eyeing a repeat? His silence, he's dodging interviews until Berkshire's 3 May 2025 meeting, only fuels speculation.

The Oracle's Next Move: Buy or Wait?

So, what's Buffett planning with his £240 billion ($306 billion) war chest? History says he thrives in chaos. 'Be fearful when others are greedy, and greedy when others are fearful,' he wrote, a mantra that's guided him to market-beating gains over 59 years.

For now, Buffett's winning. Berkshire's outperformance, up 18.6% in Q1 2025 alone, contrasts with the Nasdaq's bear market plunge. Volkswagen's tariff woes and Stellantis' furloughs show the real-world pain, but Buffett's cash cushion keeps him above the fray.

Will he pounce on discounted stocks or bide his time? As markets whipsaw, the world's richest bleed, and Trump doubles down, one thing's clear: the Oracle's still teaching Wall Street a lesson in patience and power. Aspiring entrepreneurs should take notes.