Berkshire Hathaway sells massive stockpile amid market drops
- In 2024, Berkshire Hathaway sold $134 billion worth of stocks before a market decline.
- Concerns over President Trump's economic management led to a 9% drop in the S&P 500.
- Buffett's substantial cash reserves have sparked discussions about the necessity of such financial strategies for other businesses.
In early 2024, Berkshire Hathaway, the investment conglomerate led by Warren Buffett, executed a significant sell-off of equities, totaling a net $134 billion. This strategic decision came before the downturn of the American stock markets, which began in late February 2025, amidst growing concerns regarding the management of the U.S. economy by President Donald Trump. Notably, Berkshire sold two-thirds of its stake in Apple, valued at $174 billion, during this time, demonstrating Buffett's ability to accurately time the market. By March 2025, the S&P 500, which comprises the largest American companies, had dropped by 9% from its peak, reflecting a broader market correction. In stark contrast, Berkshire Hathaway found itself in a favorable position, enjoying a 10% gain and holding an astonishing $334 billion in liquid assets. This amount was humorously noted to be enough to fill 1,900 king-size mattresses with $100 bills, highlighting the magnitude of their cash reserves. The investment community buzzed with discussions about Buffett's expertise in navigating market changes, as many investors were caught off guard by the sudden decline. The article suggested that while having a cash reserve is advantageous, not every business needs to emulate Buffett's financial strategy, indicating a diverse landscape among corporate financial management approaches.