Warren Buffett’s Berkshire Hathaway has a unique opportunity to capitalize on the current market instability caused by President Trump’s chaotic tariff rollout. With $318 billion in cash reserves, Buffett can potentially buy stocks cheaply during this bear market.
Berkshire Hathaway sold most of its Apple shares in 2024, leaving the company with more cash than ever before. This liquidity allows Buffett to take advantage of depressed stock prices, particularly in Chinese goods which are subject to 145% tariffs.
However, analysts suggest that Buffett’s best bets may be taking either Coca-Cola or American Express private, worth $280 billion and $130 billion respectively. Berkshire Hathaway already has substantial stakes in both companies, holding 10.7% of Coca-Cola and 14.7% of American Express.
While other investments made during the 2008 financial crisis could be considered, they would need to be significantly larger to have a similar impact this time around. Berkshire Hathaway’s annual shareholder meeting in May may provide more clarity on the company’s plans, but for now, Buffett seems poised to make a profit from the tariff chaos.
Source: https://www.inc.com/brian-contreras/warren-buffett-tariffs-chaos-payday-coca-cola-apple-berkshire-hathaway/91180027