U.S. Stock Market Sees Major Decline Among Seven Giants, Yet One Individual “Earned $11.5 Billion” to Secure a Position in the Global Billionaire Top 4: How Did Buffett Achieve This?

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Following a devastating sell-off in the markets last week, U.S. tech stocks experienced further volatility during trading on April 7. Major tech stocks such as Apple, Microsoft, and Tesla closed lower, with Apple seeing a decline of nearly 4%. However, Alphabet, Google’s parent company, Amazon, Meta (Facebook’s parent company), and Nvidia saw gains of 1.02%, 2.49%, 2.28%, and 3.53%, respectively.

In summary, the collective market value of the “Magnificent Seven” U.S. tech giants evaporated by over $1.8 trillion (approximately NT$59.3 trillion) within just two days of selling. The Nasdaq Composite also recorded its worst weekly performance since the outbreak of the Covid-19 pandemic and entered bear market territory.

U.S. Tech Giants Plunge, Only Buffett “Profits” $11.5 Billion

According to the Bloomberg Billionaires Index, as of April 8, Taiwan time, most of the individuals on the global Top 10 billionaires list have seen their fortunes decline by nearly $1 billion year-to-date. Tesla founder Elon Musk’s net worth has shrunk by $135 billion (approximately NT$4.44 trillion). In contrast, “Oracle of Omaha” Warren Buffett saw his assets increase by $11.5 billion (approximately NT$379.1 billion). How did he manage this feat?

How Did Buffett Profit Against the Odds?

During the most severe market downturn since the onset of the Covid-19 pandemic, Buffett’s wealth has not only remained stable but has actually increased. In just two trading days, the world’s 500 richest individuals collectively lost over $500 billion (approximately NT$16.49 trillion), marking the largest drop ever recorded by the Bloomberg Billionaires Index.

As of April 8, the world’s richest man, Musk, has seen a year-to-date decrease of over $135 billion, while the second richest, Bezos, lost $42.6 billion, and the third richest, Zuckerberg, lost $24.5 billion. Bernard Arnault, now ranked fifth and head of LVMH, saw a decrease of $26.2 billion. Even Bill Gates, ranked sixth, saw a decline of $9.45 billion, bringing his assets down to $149 billion, slightly below Buffett’s current $154 billion.

So far this year, Buffett’s assets have increased by $11.5 billion, making him the only billionaire among the top 10 globally to see an increase in wealth in 2025.

What Are Berkshire’s Successful Strategies?

Buffett’s success can be attributed to his foresight in reducing stock holdings in 2024. While the bull market was still rampant, Berkshire sold off $134 billion worth of stocks, showcasing Buffett’s anticipation of an impending market downturn.

1. Significant Cash Reserves and Short-term Treasury Bill Investments
   Before Trump’s election, Berkshire significantly increased cash and liquid asset reserves in 2024, reaching a record high of $334 billion, exceeding the remaining $272 billion in its slimmed-down stock portfolio. Most of this capital was invested in short-term Treasury bills, providing shelter during market storms and generating significant income for the group. As Buffett mentioned in his recent letter to shareholders: “With rising Treasury bill yields and our substantial increase in holdings of these highly liquid short-term securities, we achieved a foreseeable significant increase in investment income.”
2. Anticipatory Reduction of Overvalued Stocks
   During the 2024 bull market, Buffett sold a significant amount of stocks, including shares of Apple. He reduced his holdings in Apple by about two-thirds, with most of these sales occurring in the first three quarters of 2024 when Apple’s stock was still rising, peaking at around $260 per share by the end of December. Since 2025 began, Apple’s stock price has fallen by 25%, as U.S. tariffs on China are expected to severely impact tech companies like Apple that rely on Chinese components and manufacturing. Additionally, Buffett reduced his holdings in financial stocks such as Bank of America and Citigroup, avoiding significant declines of 19.67% and 15.86%, respectively, in 2025.
3. Increased Investment in Japanese Trading Companies
   Buffett opted to increase investments in Japan’s five major trading companies (Mitsui, Mitsubishi, Sumitomo, Itochu, and Marubeni), which play a crucial role in the Japanese economy. This diversification effectively reduced reliance on the U.S. market while also providing stable dividend income. According to Buffett’s February 2025 letter to shareholders, Berkshire’s annual dividend income from Japanese investments is expected to reach $812 million, while the interest cost on yen debt is only about $135 million.
4. Stability of Insurance Operations
   Berkshire’s insurance operations, including Geico and the reinsurance group, provide a significant source of stable income. Despite the S&P 500 index falling 13% year-to-date, Berkshire (BRK.B) has risen by 8.7%. Historical data shows that Berkshire’s property/casualty (P/C) insurance business has been a growth engine since its acquisition in 1967. The float from insurance allows Berkshire to invest more in high-yield common stocks instead of low-yield bonds, as customers pay premiums upfront and claims are typically paid out much later, enabling Berkshire to engage in flexible and high-return investments.
5. Diversified Investments and Stable Sectors
   In addition to insurance, Berkshire focuses on other stable sectors such as energy and railroads. In 2024, the company acquired the remaining 8% stake in Berkshire Hathaway Energy (BHE), achieving full ownership, and continues to hold assets like BNSF Railway, which have demonstrated relative stability amid market volatility. Furthermore, in Q4 2024, Berkshire invested $1.24 billion in Constellation Brands, a beverage company that could be seen as a more stable investment choice.

Buffett’s Three Key Investment Principles

As of April 8, 2025, Berkshire’s stock (BRK.B) has grown by 8.7%, while the S&P 500 index has declined by 13.74%, demonstrating its resilience amid recent market sell-offs. This performance may be attributed to the insulation of its insurance operations from global trade issues, as well as investor expectations of Buffett’s ability to invest amid market turmoil. For example, VeriSign (which provides .com domain registration services) in Berkshire’s portfolio has grown over 14% year-to-date, making it one of the best-performing U.S. stocks, despite its relatively small holding percentage.

Buffett consistently adheres to the principle of “value investing,” focusing on a company’s intrinsic value rather than short-term market fluctuations. He emphasizes maintaining cash liquidity to address market uncertainties, remaining calm when others panic. His strategies include:

• Long-term Perspective: Buffett typically invests with the mindset of acquiring a company rather than merely holding stocks.
• Avoiding Losses: His famous investment rule is “never lose money,” and he maintains discipline to mitigate market risks.
• Flexibility: He is adept at adjusting his investment portfolio according to market conditions, such as reducing holdings in overvalued stocks and seeking diversified opportunities.

Further Reading: Economic Ministry Assessment Released! A Chart Reveals the Impact on 14 Industries: Which Are Heavily Affected, and Which Are Still Under Observation?

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Source: Fortune, New York Post, Business Insider, Bloomberg

Editor: Lee Hsien-Tai