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Warren Buffett: Warren Buffett is on fire! Berkshire Hathaway shares soar 16%, investors bet on Omaha’s Midas touching Oracle and flock to his anti-recession strategy

Berkshire Hathaway’s shares soared 16% in early 2025, outperforming the S&P 500’s 2% decline. Investors flock to Warren Buffett’s conglomerate, attracted by its $320 billion cash reserves and its reputation as a safe haven during market turmoil. Analysts attribute the rally to confidence in Buffett’s ability to capitalize the economic downturn and the ability to turn a crisis into a record of opportunity.

Buffett’s net worth climbed $23 billion this year, pushing him to sixth place in the Bloomberg Billionaire Index with a fortune of $165 billion. Shareholders also praised Geico’s rebound under CEO Todd Combs, who simplified operations to boost profits. From Apple to BNSF Rail, Berkshire’s diversified holdings see it as a resilience anchor for an uncertain era.

Buffett’s value investment legacy drives confidence

Warren Buffett’s six-decade leadership turned Berkshire into a $1 trillion power company, increasing annual yields by 20%, almost double the S&P 500 growth. Like the 2008 financial crisis, his strategy of prioritizing undervalued assets during market collapse continues to inspire trust. Portfolio manager highlighted Berkshire’s $270 billion equity portfolio and $30 billion in annual operating cash flow as key advantages.
Analysts point out that Berkshire’s balance sheet has rare reliability amid geopolitical and economic instability. For example, during the internet outbreak, Berkshire’s stock price rose 10% per year, while technology stocks collapsed. Buffett is disciplined to avoid market bubbles and focuses on long-term value to make investors loyal, even if questions about succession plans persist.

FAQ:

Why is Berkshire Hathaway better than the S&P 500?
Investors trust Berkshire’s cash reserves and Buffett’s crisis-driven investment strategies that have historically been stable during market declines.


How is Warren Buffett’s approach different during a downturn?
Buffett focuses on acquiring undervalued companies and stocks when prices fall, leveraging Berkshire’s liquidity to ensure high-yield transactions.

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