
Warren Buffett saw the Trump Slump coming, and Berkshire Hathaway is built to withstand it; here's how the 94-year-old market legend planned to handle it
Warren Buffett, the 94-year-old billionaire investor, has again demonstrated his remarkable market acumen as he had predicted that Wall Street would crash after US president Donald Trump came to power, as per a report.
Berkshire Hathaway’s Shift from Stocks to Cash
Although Buffett did not forecast the market decline directly, it appeared that he had expected it as he moved his money smartly to protect against a crash, The Telegraph reported. In recent months, Berkshire Hathaway has shed billions of dollars in shares, choosing instead to reserve cash, according to the report.
That conservative strategy has left the company's cash to swell up to $334 billion, which now constitutes over one-third of its overall portfolio, The Telegraph reported.
Warren Buffett’s Major Sell-Offs Before Donald Trump Took Office
The seasoned investor shed large stakes in dominant players such as Apple, Bank of America, and Citigroup before Trump's inauguration. His move towards cash has proved justified lately as the equity market has tanked, especially following concerns regarding Trump's tariff policies and the threat of a global recession, according to the report.
Stock Market’s Recent Collapse
The market recently made a steep plunge, with the Nasdaq index, which has the likes of Apple and Nvidia, sliding 4%—the biggest one-day fall in three years, The Telegraph reported. Buffett's recent conversion of shares into cash now appears that he had anticipated the market crash, as per the report
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Buffett’s Contrarian Approach
MCH Market Insight founder Michael Hewson said, “Buffett is one of these people who buys on the way up and decides to take money at the top,” as quoted by the Telegraph.
In fact, Buffett's actions were made