The year 2025 has been tough for global markets due to economic and political issues, especially after US President Donald Trump changed tariffs. But one person stood out: Warren Buffett. His wealth grew by $21 billion this year, making him the biggest winner among the world’s richest people, according to the Bloomberg index. It’s impressive because only four out of the top fifteen billionaires saw their wealth increase this year.
A major reason for Buffett’s success is the rise in Berkshire Hathaway’s stock price, which is close to its highest point ever. Berkshire Hathaway’s shares went up 16% this year, while the Nasdaq, which is another major stock index, went down by 8%. This increase came after Berkshire Hathaway announced a record profit in its fourth quarter, mainly due to better insurance operations.
Berkshire Hathaway now has a whopping $325 billion in cash. This is more money than the total cash reserves of major tech companies like Apple, Microsoft, Alphabet, Amazon, and Nvidia combined. Some people think Buffett might have predicted a market crash since he sold off shares in Apple and Bank of America last year. However, Buffett insists he prefers investing in good companies over holding cash. He says Berkshire will keep putting most of its money into stocks, especially American ones, even if some companies operate internationally.
As worries about tariffs and a possible recession grow, global markets, including those in the US, are feeling the pressure. During this turmoil, Buffett quietly increased his investments in five Japanese trading companies. It’s been almost six years since he started buying shares in these companies, which he believes operate similarly to Berkshire Hathaway. For instance, Buffett’s stake in Mitsui & Co rose from 8.09% to 9.82%, and he also increased his shares in Mitsubishi Corp, Sumitomo Corp, Itochu, and Marubeni.
Buffett mentioned that these Japanese companies have agreed to increase investment limits, so we can expect Berkshire’s ownership to grow over time.
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