Warren Buffett, the legendary investor, has a history of navigating market crises with skill and foresight. He entered 2025 with a record $334 billion in cash, accounting for 30% of Berkshire Hathaway’s total assets. This defensive stance provided a cushion as market volatility surged.
During the Covid pandemic in 2021, Buffett was ready to deploy a massive amount of capital but ultimately decided to wait for a more opportune moment. The biggest investment Berkshire made during that time was in its own stock, repurchasing $24.7 billion in 2020 and $27 billion in 2021. In the 2008 financial crisis, Buffett made some of his most famous deals.
Buffett’s defensive cash strategy
He rescued Goldman Sachs with a $5 billion cash infusion and invested in General Electric and Bank of America. “We made them because they seemed intelligent things to do,” Buffett said in 2020, reflecting on the crisis period.
Buffett’s reputation as a shrewd investor with a mountain of cash allowed him to serve as a lender of last resort during chaotic markets. He frequently calculated his opportunity cost during that period. “You are faced, in a chaotic market, where people need large sums,” Buffett said in 2009.
“All of a sudden you’re called on for billions if you’re going to play at all.”
Warren Buffett’s track record of navigating past crises by maintaining a defensive cash position and seizing opportunities during market depressions underscores his status as a legendary investor.
Image Credits: Photo by Austin Distel on Unsplash
