However how? What did he do in a different way? Extra importantly, what are you able to study from it?
Let’s break it down.
“How’s the market massacre feeling?” a good friend casually requested.
It’s a sound query. With markets correcting sharply in 2025, many buyers have been scrambling. However those that had ready—like Buffett—have been simply sitting tight.And if there was ever a time to really feel a part of the Buffett tribe, this was it.
Buffett’s Secret? Doing Nothing!
Whereas others have been driving the euphoric highs of 2024’s bull market, Buffett was quietly exiting. Berkshire Hathaway bought a staggering $134 billion value of equities.
After which?
He didn’t chase the AI wave. Didn’t wager on crypto. Didn’t provoke buybacks or soar into sizzling IPOs.
As an alternative, he took all that cash and parked it into boring however secure US Treasury Payments—incomes about 5% yearly. That’s greater than $14 billion in curiosity earnings a 12 months for simply sitting on the sidelines.
As of now, Berkshire holds $330 billion in money, with a majority in short-term Treasuries. To place that in perspective, that’s greater than the mixed market worth of Starbucks, Ford, and Zoom.
This wasn’t random. This was basic Buffett.
However Why Did Buffett Promote?
1. Valuations Have been Too Excessive
Buffett is obsessive about shopping for high quality at a good value. Not at any value. And in 2024, he noticed the market hovering past motive.
His favourite warning sign—the Buffett Indicator (Complete Market Cap to GDP)—had breached 200%, a stage he as soon as known as “taking part in with fireplace.”
Traditionally, such ranges preceded main market crashes. The final time this ratio peaked so excessive was simply earlier than the dot-com bubble burst in 2000 and the Nice Monetary Disaster in 2008.
One other purple flag? The S&P 500’s price-to-book ratio, which hit ranges not seen for the reason that late ’90s—one other interval of overvaluation.
2. The Return of Trump & Tariffs
With Trump’s return to energy got here discuss of tariffs. Once more.
Buffett has beforehand likened tariffs to financial warfare. And Berkshire doesn’t make daring strikes when the world is on the verge of a commerce warfare. As an alternative, Buffett’s rule is straightforward: Don’t lose cash.
3. No Good Offers
Regardless of all that money, Buffett didn’t go on an acquisition spree. Why? Every little thing was simply too costly. The valuations didn’t justify motion. So, he stayed affected person.
And that persistence paid off.
This Isn’t Buffett’s First Rodeo
Let’s rewind.
- In 1999, as dot-com mania soared, Buffett didn’t be a part of the frenzy. He waited for the crash—after which purchased.
- In 2008, throughout the monetary disaster, he moved quick—bailing out Goldman Sachs and GE by means of strategic investments.
- In 2020, throughout the COVID crash, he was cautious—not as a result of he lacked funds, however as a result of the alternatives weren’t juicy sufficient.
Buffett has at all times completed the alternative of the group. When others get grasping, he turns into fearful. And when others panic, he will get grasping.
The Energy of Money
Money isn’t simply safety. It’s energy.
It offers you:
- The liberty to attend.
- The readability to disregard hype.
- The firepower to strike when costs crash.
Whereas markets panicked in 2025, Buffett wasn’t scrambling to promote. If costs fell additional, he’d purchase. If not, he’d accumulate curiosity. Win-win.
Additionally, Berkshire’s large money pile can also be a part of a succession technique. At 94, Buffett has already handed the reins to Greg Abel. That warfare chest? It’s not only a defensive defend. It’s a loaded gun for the subsequent chief—able to strike when the time is correct.
Classes From the Oracle of Omaha
- Restraint is a superpower
You don’t want a billion-dollar portfolio to take a position like Buffett. Simply the power to attend. - Don’t overpay for hype
“It’s higher to purchase a fantastic firm at a good value than a good firm at a fantastic value.” That’s Buffett’s mantra. - Money is underrated
Whether or not you are eyeing shares, actual property, or mangoes at your sabzi mandi, money offers you choices. You’ll be able to stroll away when the value is just too excessive—and are available again when it’s honest. - Act when concern returns
Buffett is already investing once more—this time, in undervalued Japanese shares. And he’ll preserve doing what he’s at all times completed—purchase worth when others are working scared.
Ultimate Ideas: What Can You Do?
You don’t need to be Warren Buffett. However you possibly can study from him.
- Construct a bit emergency fund—not only for emergencies however for alternatives.
- Keep calm when the markets flip purple.
- Tune out the hype. Tune into worth.
- Don’t concern sitting on money if nothing seems to be good.
- Be prepared. As a result of when others panic, that is your time to pounce.
So, how’s the market massacre feeling to you?
For those who’ve been taking part in it good, pat your self on the again. And if not, possibly now’s a superb time to construct that warfare chest.
(The creator Chakrivardhan Kuppala is Cofounder & Government Director, Prime Wealth Finserv. Views are personal)
