In today’s Finshots, we tell you how Warren Buffett’s seeing his portfolio grow when most top billionaires bleed losses.

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The Story

‘How’s the market bloodbath feeling?’, a friend asked on our group chat a day ago.

Honestly? Not bad. I’ve been saving up for real estate, but with markets correcting, sitting on that cash feels smarter than rushing into a big decision. Locking myself into an EMI to own an asset feels less smart than deploying it into stocks that are suddenly on discount. I don’t have to worry about monthly payments, I’ve got liquidity, and more importantly, I’m not scrambling to sell things in a panic. If anything, this correction could even throw up bargain deals in real estate.

So yeah, it feels like I’ve finally learned something from past market crashes.

And, for once, it feels good to be in the Warren Buffett tribe.

Because while other billionaires watch their net worth shrink in the ongoing crash, Buffett’s probably sipping Cherry Coke with a smile.

He’s made about $13 billion (in 2025) during what some are calling one of the worst crashes in years. And that’s no joke given that he oversees the $1 trillion behemoth that Berkshire Hathaway is – where a single misstep can wipe out billions.

So how does he stay so calm and keep winning?

Turns out, the move he made wasn’t today. Buffett quietly began preparing in 2024, when market optimism was at its peak.

Let us explain…

Buffett, with all his folksy charm, just went back to his classic playbook. And it’s one that’s as much about what not to do, as it is about bold bets.

While everyone was cheering on the bull run, Berkshire sold $134 billion worth of equities. And what did Buffett do with all that money? Nothing. He didn’t jump into private equity, buybacks, crypto, or chase the next AI boom. He parked that money in good ol’ US Treasury bills. Yes, boring but safe, predictable T-bills (something like short term government bonds in India).

Today, Berkshire sits on $330 billion in cash. That’s more than the combined value of Starbucks, Ford, X, New York Times, Target and Zoom! About half of it was added in 2024 (cash plus investments in Treasury bills in the image below), and over 85% of it is in short-term Treasuries earning about 5% a year. That’s over $14 billion in annual interest income! Without lifting a finger. Just for sitting tight.

That begs the question: Why did Buffett do what he did?

Well, for one, Buffett is obsessed with valuations. He doesn’t care about hype. If something looks expensive, he’d rather wait than overpay. Or as he likes to say, “It’s better to buy a great company at a fair price than a fair company at a great price.” So when markets were soaring, Buffett either saw a correction coming or simply didn’t see better opportunities than T-bills.

And in 2024 he said it clearly. Stock valuations were just too high. His favourite market metric, the so-called “Buffett Indicator” (which compares the size of the stock market to the country’s GDP), had crossed 200% late last year. And that’s a level he once described as “playing with fire.” So he didn’t.

And while the Buffett Indicator might not be foolproof, other signals like the S&P 500’s price to book ratio screamed overvaluation. The last time this ratio was as high as today was back during the dot-com bubble in the late 1990s.

So being the value investor that he is, Buffett liquidated as much equity as he could and waited instead. And while others danced on the fire, Buffett walked away with a hose in hand.

Then we have macro chaos.

With Trump back and tariffs looming, Buffett likely didn’t want to get caught in another economic war. He’s even gone so far as to say that tariffs are a kind of economic warfare. And when the world looks uncertain, Buffett’s first rule is simple: Don’t lose money.

But there’s also something else that might have made him amass such cash. Buffett is 94. And the succession plan at Berkshire is already in place. Greg Abel, his chosen successor, will soon take over. So that cash pile is not just a defensive play, it’s a baton. A war chest ready for the successor to deploy when the time is right.

Because the truth is, Berkshire hasn’t found big acquisition targets in recent years since everything’s just been too expensive.

This moment isn’t his first rodeo either. It’s classic Buffett-style investing.

Back in 1999, when dot-com mania was peaking, Buffett sat it out. Tech stocks were flying and Berkshire looked old school. And then the bubble burst. Buffett survived and scooped up bargains while others nursed losses. Again in 2008, he went on the offensive. He bailed out Goldman Sachs and General Electric through stock deals that earned him billions. Even during COVID in 2020, when things crashed briefly, he stayed cautious — not because he didn’t have the money, but because the opportunity was too narrow.

And that discipline, paired with Charlie Munger’s clarity and Berkshire’s long-term bets, has helped Berkshire deliver a whopping 20% compounded annual growth rate (CAGR) from 1965 to 2024. The S&P 500’s 10% CAGR during the same period falls flat in comparison. For perspective, ₹100 invested with Buffett in 1965 would be over ₹46 lakhs today. But in the S&P 500? Just about ₹27,000!

Which brings us to today.

The markets are panicking but Buffett isn’t losing sleep. Because if prices fall further, he’s ready to buy. If they don’t, he’s happy collecting billions in interest.

And that, folks, is the beauty of having cash. It doesn’t just protect you, it gives you freedom to wait, to act, to ignore the noise and do what makes sense.

Sure, Buffett has more information, more tools and a massive team. But this isn’t about having an edge. It’s about patience. About looking for the right price and holding your nerve when everyone else is losing theirs.

So the lesson is simple: You don’t need a billion dollar portfolio to think like Buffett. You just need a little restraint. A little awareness of value. And a little dry powder when things go on sale.

Because when others are fearful, Buffett gets greedy. And now that fear is back, he’s probably getting ready to pounce again (He’s already seeing value in Japanese companies and investing there, for instance).

If that’s where you are too, pat yourself on the back and good luck building your portfolio!

And if not, now’s as good a time as any to remember what Buffett taught us. It’s better to pay ₹80 for something worth ₹100, than ₹100 for something that might be worth ₹150 someday. That’s true in stocks, in real estate or even for mangoes at your local sabzi mandi.

And cash? Cash lets you make bold moves when fear takes over the markets. Because that’s when Buffett acts. And maybe, that’s what you should prepare for too.

So tell us. How’s the market bloodbath feeling to you, and are you taking any notes from Buffett?

Until then…

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