Berkshire’s insulation and investor sentiment help Buffett buck trend of billionaire wealth losses
Warren Buffett's net worth has notably increased, despite significant market volatility and the tariffs implemented by former US President Donald Trump, according to Financial Post.
According to the Bloomberg Billionaires Index, Buffett's fortune has risen by US$11.5bn this year, reaching US$153.5bn.
This positions him as the world's fourth-richest individual and one of the few among the top 20 billionaires to experience wealth growth during this period.
The broader billionaire community faced substantial losses due to the tariffs, which triggered a selloff erasing trillions from global equities.
The world's 500 richest individuals collectively lost over US$500bn in the two trading sessions following the tariff announcements.
Elon Musk, despite remaining the world's richest person, saw his fortune decline by US$134.7bn, bringing his net worth to US$297.8bn as of Monday, marking the first time it has fallen below US$300bn since November.
Berkshire Hathaway Inc., Buffett's conglomerate, experienced an 8.8 percent drop in its share price since April 2. However, this decline is less severe than the 10.7 percent drop observed in the S&P 500 index over the same timeframe.
This relative resilience reflects the conglomerate's focus on sectors like property and casualty insurance, which are less exposed to global trade tensions.
Additionally, investors anticipate that Buffett may leverage the market downturn to make significant acquisitions, reinforcing confidence in Berkshire Hathaway's strategic positioning.
In recent quarters, Buffett has adjusted his investment portfolio by reducing stakes in companies such as Apple Inc. and Bank of America Corp., both of which have experienced double-digit share price declines since the tariff announcements.
The broader economic landscape remains complex, with various sectors and individuals experiencing divergent impacts from the tariffs and market fluctuations.
While many billionaires have seen their fortunes diminish, Buffett's strategic decisions and Berkshire Hathaway's diversified portfolio have positioned him to not only withstand the turbulence but also achieve notable financial gains.
While many billionaires faced setbacks, a few managed to increase their fortunes.
As per Forbes, Francoise Bettencourt Meyers, L’Oreal SA heiress, gained US$1.8bn, placing her at No. 19 on Bloomberg’s ranking.
Additionally, Carlos Slim, owner of America Movil, saw a US$2.95bn boost to US$85.5bn, as Mexican stocks avoided the downturn due to tariff exemptions.
