Is Warren Buffett silently forecasting the next global downturn?
As of May 8, 2025, Berkshire Hathaway sits on an unprecedented $347.7 billion cash reserve. This isnāt just a balance sheet quirkāitās a strategic warning sign. Historically, Buffett doesnāt stockpile cash without reason. When he does, turbulence tends to follow.
š Letās connect the dots:
ā 1999 ā Cash holdings surged before the dot-com crash.
ā 2007-2008 ā Liquidity increased ahead of the global financial meltdown.
ā 2019 ā Cash buildup months before the COVID market collapse.
ā 2025 ā Weāre here again.
This year alone, Berkshireās Q1 operating profit slid by 14%. Insurance losses, currency instability, and muted buying activity suggest Buffett is sitting out the market. In fact, for ten consecutive quarters, Berkshire has sold more stocks than it has bought.
š Buffettās Own Words: āI donāt see anything worth buying.ā Thatās not fearāthatās wisdom talking.
But hereās the real twistāBuffett has announced heāll step down by the end of 2025, passing leadership to Greg Abel. A new captain, a historic cash reserve, zero appetite for deals... Something big is brewing.
š¢ Berkshire isnāt just waiting. Itās preparingāeither for chaos, opportunity, or both.
To the #AMAGE community:
š„ Is this the prelude to a market storm?
š„ Or is Buffett simply staying true to his time-tested strategy?
Your insights matter. Whatās your take on the Cash Mountain? šš