Warren Buffett, one of the world’s richest people, has grown his net worth by $16.4 billion in 2025. He is the only person among the top 10 wealthiest to increase his fortune this year. Buffett’s success is due to his disciplined investment approach developed over decades.
Berkshire Hathaway, Buffett’s company, has a concentrated portfolio. Two-thirds of its stock holdings are in just five companies. These include Apple, American Express, Bank of America, Coca-Cola, and Chevron.
Buffett said, “Diversification is protection against ignorance. It makes little sense if you know what you’re doing.” He prefers established companies with strong management and consistent cash flow. Despite having a record $334 billion in cash, Buffett has made some new investments.
Buffett’s strategic portfolio choices
He bought stakes in Constellation Brands, which owns popular beer brands like Corona and Modelo Especial. He also increased his holdings in Domino’s Pizza.
Experts warn that everyday investors should not try to copy Buffett’s cash strategy. Having too much money in savings can cost investors in the long run. A traditional portfolio of 60% stocks and 40% bonds almost always beats cash over time.
Jack Manley, a global market strategist, said, “When we think about investors making the wrong decisions—investing with their guts, not with their brains—they’re going to cash.”
Amy Arnott, a portfolio strategist at Morningstar, advised against making big changes to your portfolio because of market volatility. She suggested that retirees keep one to two years’ worth of portfolio withdrawals in cash. Adrianna Adams, a certified financial planner, said that while having a lot of cash can boost confidence, extra cash is often better invested in the market if not needed within the next two years.
In short, Buffett’s cash strategy works for him, but it may not be the best approach for the average investor. It is usually better to maintain a balanced mix of cash and investments based on your individual goals and timeline.
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