Warren Buffett’s decision to sell stocks and hold cash has paid off. The world’s 500 richest people lost over $500 billion in two days of market turmoil. But Buffett’s net worth has risen this year.
Elon Musk and Mark Zuckerberg were hit hard. Musk’s net worth dropped by $31 billion as Tesla shares fell. He lost another $4.4 billion, bringing his total losses to $130 billion this year.
Zuckerberg lost $27 billion as Meta stock slumped. Buffett’s move to trim Berkshire Hathaway’s portfolio and hold cash has protected the company from the market chaos. President Trump’s surprise tariff announcement triggered the turmoil.
The S&P 500 sank 10.7% and the Nasdaq plunged 11.3% in just a few days. By the end of 2024, Berkshire had $334 billion in cash before liabilities. This cash pile is now about one-third of the company’s $1 trillion market value.
It shows Buffett’s caution in an overheated market. Berkshire’s stock has risen nearly 8% this year, while the S&P 500 is down 14%. The firm sold $143 billion in shares in 2024, more than triple the amount sold in 2023.
Net stock sales were $134 billion after accounting for $9 billion in purchases. Buffett even trimmed positions in Apple and Bank of America. This repositioning came with a big tax bill.
Berkshire paid $26.8 billion in corporate income tax to the IRS in 2024. Buffett said this was “the largest amount ever paid by any US company.”
Buffett’s careful strategy has worked well. It highlights his skill in navigating rough times and protecting his company and shareholders.
Elon Musk’s net worth has fallen below $300 billion for the first time since last year. It dropped to $298 billion on Monday, according to Bloomberg’s Billionaire Index. This is mainly due to the recent drop in Tesla’s stock and new tariffs announced by the White House.
Musk’s wealth has decreased by nearly $135 billion or about 31% since the start of the year. This is a big downturn for the billionaire. His net worth had not been below $300 billion since November, when it was $264 billion.
The sharp fall in Tesla’s stock price is the main factor driving this decline. The stock has dropped nearly 40% this year. Many Tesla investors and fans are also worried about Musk’s divided attention.
He is involved in various ventures, including advising President Donald Trump. When asked how he manages his many responsibilities, Musk admitted it was “with great difficulty.” There are rumors he may leave his advisory role.
Buffett’s cautious cash strategy pays
But both Musk and the Trump administration have dismissed this talk. They did not give a specific timeline. The sweeping tariffs recently announced by Trump have also unsettled financial markets.
This has further impacted Tesla and Musk’s wealth. Musk generally supports Trump but said he prefers “zero” tariffs. He called for a “free trade zone” between the US and Europe.
Despite these big losses, Musk remains the wealthiest person in the world. He is over $100 billion ahead of Jeff Bezos as of Monday. Some of President Trump’s billionaire supporters have taken big financial hits due to the recent market turmoil.
The world’s 500 richest people lost a total of $536 billion in the first two days of stock trading after Trump announced sweeping border taxes last Wednesday. This was the biggest two-day loss of wealth ever recorded by Bloomberg’s billionaires index. Here is a look at the four tycoons who have been hit the hardest – and one billionaire who is still doing well this year.
Elon Musk, the world’s richest man and CEO of Tesla, has taken the biggest hit by far. Tesla’s shares plunged, wiping $31 billion off Musk’s net worth between Thursday morning and Friday evening. Musk’s estimated wealth has fallen by $130 billion so far this year.
But he remains the world’s richest person, with a net worth of $302 billion. Mark Zuckerberg, the Facebook founder, had the next biggest loss at over $27 billion. Zuckerberg is the world’s third richest person, with an estimated net worth of $179 billion.
He suffered from a plunge in the value of Meta. The tariff war hit tech companies hard, leading to big financial setbacks for Zuckerberg. Jeff Bezos, the Amazon founder, recorded a two-day loss of $23.5 billion.
Amazon’s market value fell a lot this year, impacted by tariffs on imports. Bezos is currently the world’s second richest person at $193 billion. His net worth has decreased by $45 billion so far this year.
Bernard Arnault, owner of the LVMH luxury goods empire, lost $6 billion on Thursday and over $5 billion on Friday. Trump’s tariffs affected Asian factory hubs that are key to the global garment industry. Arnault is Europe’s richest person and the fourth wealthiest globally.
His net worth has dropped to $158 billion, down $18.6 billion this year. Not all billionaires have seen their net worth go down though. Warren Buffett, the chair of Berkshire Hathaway, saw his wealth increase to $155 billion this year.
Although he took a $2.57 billion hit during the two-day market meltdown, his net wealth has grown by $12.7 billion so far this year. While some of the world’s richest individuals allied with Trump faced big financial losses due to the tariff-driven market turmoil, a few have managed to increase their wealth. The impact of these tariffs reflects the broader uncertainties and economic challenges in the global financial markets.
