Warren Buffett’s decision to sit on $300B cash pile pays off — as 500 richest moguls lose half a trillion dollars

New York Post - Apr 7th, 2025
Open on New York Post

Warren Buffett's decision to sell off stocks in 2024 and amass $300 billion in cash has proven wise, as he is the only billionaire among the world's wealthiest whose net worth increased in 2025. Amidst a historic market selloff triggered by President Trump's tariffs, Buffett's wealth rose by $12.7 billion. The market turmoil saw the S&P 500 and Nasdaq Composite plummet by over 10%, erasing $536 billion from the fortunes of the world's 500 richest individuals. Notably, Elon Musk and Mark Zuckerberg were among the hardest hit, losing $31 billion and $27 billion, respectively.

Buffett's strategy of caution over aggression allowed him and Berkshire Hathaway to weather the financial storm. In 2024, Berkshire significantly reduced its stock portfolio, selling $143 billion worth of shares and accumulating a substantial cash reserve. This move reflected Buffett's skepticism about high market valuations. The cash pile, representing a third of Berkshire's market value, underscores Buffett's reluctance to invest in what he perceived as an overheated market. Despite the strategic repositioning, Berkshire faced a hefty tax bill, paying $26.8 billion in corporate income tax, the largest ever by a US company.

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RATING

6.0
Moderately Fair
Read with skepticism

The article provides a detailed account of Warren Buffett's financial strategy amidst recent market volatility, highlighting his decision to hoard cash and its positive outcomes. It accurately reports on the market downturn and its impact on other billionaires, although some claims require further verification. The lack of source attribution and transparency in methodology slightly undermines its credibility. While the article is timely and relevant, focusing on current economic conditions, it lacks balance by not exploring alternative investment strategies or perspectives. The clarity and readability are strong, making the content accessible to a general audience. However, the limited engagement and controversy potential suggest that while informative, the article may not provoke significant discussion or debate. Overall, it effectively informs readers about Buffett's strategy but could benefit from a broader analysis of the financial landscape.

RATING DETAILS

7
Accuracy

The story presents several factual claims that are largely accurate but require verification for complete confidence. For instance, the article states that Warren Buffett's net worth increased by $12.7 billion, which aligns with reports indicating his wealth rose amidst market volatility. However, the claim that Berkshire Hathaway paid the largest tax bill ever by a U.S. company could not be independently verified and might be exaggerated. The story accurately reports the market losses experienced by other billionaires, such as Elon Musk and Mark Zuckerberg, reflecting the broader market downturn. However, the specific figures for market indices like the S&P 500 and Nasdaq Composite need precise confirmation to ensure they match reported data during the specified period.

6
Balance

The article focuses primarily on Warren Buffett's financial strategy and its outcomes, providing a positive portrayal of his decision-making. While it mentions the losses faced by other billionaires, it does not explore alternative perspectives or strategies that could have been employed by these individuals. This focus on Buffett's success could suggest a bias towards his approach without offering a comparative analysis of other strategies. The lack of diverse viewpoints limits the article's balance, as it doesn't fully explore the broader implications of the market downturn on different sectors or investor types.

8
Clarity

The article is generally clear and well-structured, with a logical flow of information that makes it easy to follow. The language is straightforward, effectively communicating complex financial concepts in a manner accessible to a general audience. The tone remains neutral, focusing on factual reporting rather than opinion. However, some technical terms related to financial markets and investments might require further explanation for readers unfamiliar with these concepts. Overall, the clarity of the article supports readers' comprehension of the key points and claims.

5
Source quality

The article does not explicitly cite sources, which raises questions about the reliability and credibility of the information presented. While it references widely known figures and events, such as Warren Buffett's investment strategy and market indices, the absence of direct attribution to credible sources like financial reports or expert commentary weakens the article's authority. The lack of source variety and specific references to authoritative financial analyses or statements from Berkshire Hathaway impacts the overall trustworthiness of the content.

4
Transparency

The article lacks transparency in terms of how the information was gathered and the methodology used to arrive at specific figures. There is no disclosure of potential conflicts of interest or the basis for the claims made, such as Buffett's net worth increase or Berkshire's tax payments. The absence of context regarding the data sources and the lack of explanation about the methodology used to calculate the financial figures presented hinder the article's transparency. Readers are left without a clear understanding of how the conclusions were reached or what factors might have influenced the reporting.

Sources

  1. https://www.businessinsider.com/warren-buffett-berkshire-hathaway-cash-pile-stock-sales-tax-record-2025-2
  2. https://fortune.com/2025/03/15/warren-buffett-berkshire-hathaway-stock-market-correction-cash-pile-acquisitions/