But what do you think? What did he do differently? More importantly, what can you learn from it?
Let’s break it down.
“How do you feel about the market?” my friend casually asked.
That’s a valid question. Many investors were scrambling as the market was rapidly revising in 2025. But those prepared like Buffett were just sitting firmly. And if there was a time when I felt a part of the Buffett tribe, this was it.
Buffett’s secret? Do nothing!
Buffett was quietly out while others were riding on the euphoria of the 2024 bull market. Berkshire Hathaway sold an astounding $134 billion worth of stock.
after that?
He didn’t follow the waves of AI. I didn’t bet on the code. They did not start buying back or jump to a hot IPO.
Instead, he took all that money and parked it on a boring but safe US Treasury bill. This is more than $14 billion in interest income per year, just sitting on the sidelines.
To date, Berkshire holds $300 billion in cash, with a majority of the Short-Term Treasury. Looking at it, it’s more than the total market value of Starbucks, Ford and Zoom.
This was not random. This was the classic Buffett.
But why did Buffett sell it?
1. The rating was too high
Buffett is obsessed with buying quality at a fair price. Not at any price. And in 2024 he saw the market surge beyond reason.
His favorite warning signal – Buffett indicator (total market capitalization to GDP) – violated 200%, the level he once called “Play on fire.”
Historically, such levels have preceded major market crashes. This ratio last peaked just before the 2000.com bubble burst and the 2008 big money crisis.
Another red flag? The price-to-book ratio for the S&P 500 reached levels not seen since the late 90s.
2. Trump and tariff return
With Trump’s return to power, talks about tariffs came. Also.
Buffett previously compared tariffs to economic warfare. And Berkshire doesn’t make any bold moves when the world is on the brink of a trade war. Instead, Buffett’s rules are simple. Don’t lose your money.
3. No good deals
Despite all that cash, Buffett did not make the acquisition. why? Everything was too expensive. The assessment did not justify the action. So he remained patient.
And that patience paid off.
This is not Buffett’s first rodeo
Let’s rewind.
- In 1999, Buffett did not join Frenzy as Dot-Com Mania spiked. He waited for the crash to be dropped before buying it.
- In 2008, during the financial crisis, he bound Goldman Sachs and GE through strategic investments.
- During Covid’s crash in 2020, he was cautious, not because he was lacking in funds, but because the opportunity wasn’t juicy enough.
Buffett has always been against the crowd. When others become greedy, he becomes frightened. And when others panic, he becomes greedy.
The power of cash
Cash is more than just protection. the force.
It gives you:
- Freedom to wait.
- Clarity to ignore hype.
- Firepower that attacks when price crashes.
While the market panic in 2025, Buffett was not in a hurry to sell. If the price goes down further, he will buy it. Otherwise, he was attracting interest. Win-win.
The huge Berkshire cash pile could also be part of the succession strategy. At 94, Buffett has already handed the reins to Greg Abel. That war-heavy? It’s not just a defensive shield. It’s a loaded gun for the next leader. You’re ready to hit when the time is right.
Lessons from Oracle in Omaha
- Restraint is a superpower
You don’t need a billion dollar portfolio to invest like Buffett. It’s just the ability to wait. - Don’t overpay the hype
“It’s better to buy a better company at a fair price than a fair company,” that’s Buffett’s mantra. - Cash is undervalued
Whether you’re focusing on inventory, real estate or mangoes at Sabzi Mandi, cash gives you choice. When the price is too high, leave and when it’s fair, come back. - Act when fear returns
Buffett is already investing again. This time, it is found in undervalued Japanese stocks. And he continues to do what he always does.
Final Thoughts: What can you do?
You don’t have to be Warren Buffett. But you can learn from him.
- Not just in emergencies, opportunity.
- Please calm down when the market turns red.
- Adjust the hype. Adjust to value.
- If nothing looks good, don’t be afraid to sit in cash.
- i am ready. Because when others panic, it’s your time.
So, how does Market Blood Bass feel to you?
If you’re playing smartly, tap on the back. If not, then now is probably the best time to create that war heart.
(Author Chakrivardhan Kuppala is co-founder and executive director of the Prime Minister’s property FinServ. The view is unique.)
