The stock market has had a bumpy start to 2025, with major indexes such as the S&P 500 and Nasdaq Composite falling into correction territory and several recent market darlings seeing major declines. But legendary investor Warren Buffett and his vast conglomerate Berkshire Hathaway (BRK-A) (BRK-B) haven’t been feeling the pain.

Buffett’s net worth has jumped more than $25 billion in 2025, according to Bloomberg, thanks to a roughly 18 percent gain in Berkshire’s stock price so far this year. The increase has pushed Buffett past Microsoft (MSFT) co-founder Bill Gates on the list of the world’s richest people.

Berkshire shares surge amid investor angst

Berkshire’s gains have come even as investors grow concerned about how new tariffs from the Trump administration will impact the economy. The tech-heavy Nasdaq was down nearly 14% from its recent high as of late March, while the S&P 500 had fallen about 9%.

Buffett was asked earlier this month in an interview with CBS News how tariffs might impact inflation and the economy.

“Tariffs are actually, we’ve had a lot of experience with them. They’re an act of war, to some degree,” Buffett said. “Over time, they are a tax on goods. I mean, the Tooth Fairy doesn’t pay ’em!”

Buffett has been building Berkshire’s cash pile over the past year. Berkshire’s operating businesses generate cash, which is then deployed by Buffett and his leiutenants as they see fit. Berkshire ended 2023 with more than $160 billion in cash, but that number ballooned to more than $300 billion at the end of 2024 as Buffett reduced its massive stake in Apple (AAPL) and struggled to find attractive new investments.

“Despite what some commentators currently view as an extraordinary cash position at Berkshire, the great majority of your money remains in equities,” Buffett told shareholders recently in his widely read annual letter. “Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses, whether controlled or only partially owned.”

Berkshire outperforms Magnificent 7 stocks

Berkshire held stakes in Apple and Amazon (AMZN) at the end of 2024, but otherwise had no exposure to tech stock darlings such as Nvidia (NVDA) and Tesla (TSLA).

Investor anxiety has surfaced in recent weeks about the sustainability of massive AI spending and whether companies will ultimately earn a return on their large capital expenditures. Tech giants such as Microsoft, Meta Platforms (META), Alphabet (GOOG) (GOOGL) and Amazon all plan to spend tens of billions of dollars this year as they build out their AI capabilities.

Investors seem to be once again appreciating Buffett’s conservative approach, pushing Berkshire shares to new highs in 2025. The company is often viewed as a defensive holding by investors because of its sound management, strong balance sheet and ability to deploy cash during market downturns. Now, they hope he can find a good use for all that cash.

Buffett will speak to shareholders at the company’s annual meeting on May 3.

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Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.

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