Facing the Market Plunge Triggered by Trump’s Tariffs, Buffett Chooses to Continue Net Selling Stocks and Hoarding Cash to $344 Billion
Buffett’s “inaction” reflects valuation caution, smooth succession, and defensive strategy.
(Background: Buffett candidly admits feeling old, finding thinking and reading increasingly challenging… He discusses his decision to step down as CEO of Berkshire.)
(Context: Buffett has previously invested in Brazil’s crypto-friendly bank, Nu Holdings, with Berkshire Hathaway holding $1.2 billion.)
The Oracle of Omaha, Warren Buffett, led Berkshire Hathaway in submitting its Q2 2025 financial report on Saturday, revealing a 4% year-on-year decline in operating profit to approximately $11.16 billion. However, net profit plummeted by 59%, primarily due to a drop in common stock investment income and impairment on Kraft Heinz stock. (Berkshire recorded an asset impairment of about $3.8 billion on Kraft Heinz.)
Note: Kraft Heinz is a major American food and consumer goods manufacturer, with products including Heinz ketchup, Kraft cheese sauce, and Oscar Mayer ham. However, in recent years, it has faced inflationary pressures and changing consumer dietary habits, leading to weakened market demand for its food products.
Buffett Warns of Tariff Policy Risks
Simultaneously, Buffett warned that the accelerating changes in international trade policies and tariff situations in the first half of 2025 could adversely affect the majority of the company’s operational businesses and investments, potentially impacting future financial reports.
Berkshire Class A shares closed at $711,480 on the 1st, having cumulatively dropped about 12% over the past three months. 
Net Seller of Stocks for 11 Consecutive Quarters
Additionally, it is noteworthy that the Q2 financial report shows Berkshire has been a net seller of stocks for the 11th consecutive quarter, selling $6.92 billion and buying $3.9 billion, while also refraining from share buybacks for the fourth consecutive quarter.
In the face of the temporary “discount” brought by Trump’s tariff war, Buffett has chosen to patiently observe. As of the end of June, Berkshire’s cash position reached $344 billion, slightly lower than the record high of $348 billion set in the first quarter, but still exceeding the total assets of most S&P companies.
In his February shareholder letter, Buffett reiterated:
Berkshire will invest the vast majority of its funds in stocks.
This statement indicates that cash accumulation is merely a process, not an endpoint. When the real “rain” arrives, these funds will be transformed into ammunition for acquisitions, increases, or privatizations.
Succession Points and Operational Headwinds
We know that Buffett will officially step down at the end of 2025, with Greg Abel taking over as CEO. Maintaining financial flexibility before the transition of power also allows the new leader to have a generous buffer.
In the future, the market will observe how Abel continues this discipline while converting cash into assets that can consistently generate compound returns. At the same time, Berkshire’s “inaction” can also be seen as a calculated move: exchanging time for price, using patience to exchange for opportunities.
For investors, it serves as a reminder: the real risk is not missing a rebound, but embracing the wrong assets at the wrong price.
Extended Reading: Who is Abel Greg, Buffett’s Selected “Successor” for Berkshire? What are His Views on Cryptocurrency?
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Who is Greg Abel, Buffett’s Chosen “Successor” for Berkshire? What are His Views on Cryptocurrency?