Buffett’s Secret Plan for the Market Crash

"The stock market is designed to transfer money from the Active to the Patient."

And in 2025, Warren Buffett is as patient as ever.

At 94 years old, the Oracle of Omaha is still outmaneuvering hedge funds, AI-driven algorithms, and day traders chasing the next big thing.

While the market swings wildly, he’s sitting on a record-breaking $334 billion in cash.

That’s not just caution. It’s strategy.

Buffett has spent decades mastering the market. He bought stocks when others panicked in 2008.

He held cash when tech investors got greedy in 2000.

Now, in 2025, he’s playing the same game, and winning.

Buffett’s $334 Billion Cash Pile Berkshire Hathaway has nearly doubled its cash reserves since 2023.

That money isn’t just sitting idle, it’s waiting for the right moment.

In 2024, Buffett sold a staggering $134 billion worth of stocks.

That’s five times more than what he sold in 2023. He cut back hard on stocks he once loved.

His biggest move? Apple.

He slashed his Apple holdings by 67%, dropping from 906 million shares to just 300 million.

His Apple stake was once worth $174 billion.

Now? It’s down to $75 billion.

A few weeks later, Apple’s stock tumbled 15%. Buffett had seen the writing on the wall.

And Apple wasn’t the only one.

He cut Bank of America by 34%, reducing it from $41 billion to under $30 billion. He completely dumped Citigroup before Trump’s inauguration.

Then, in early 2025, the S&P 500 fell 10%, officially entering correction territory.

The Nasdaq suffered its worst one-day drop in three years.

Buffett? Sitting on billions, untouched by the chaos.

Wall Street Reacts

Investors took notice.

Michael Hewson, founder of MCH Market Insight, put it simply:

"Buffett buys on the way up and sells at the top. US markets are expensive, and he’s taking money off the table."

His strategy isn’t new. He avoided the dot-com crash.

He stayed liquid before the 2008 financial meltdown. He sat tight during the COVID crash.

And now? He’s doing it again.

Where Buffett Is Investing

Buffett hasn’t given up on stocks.

But he’s picking his spots carefully.

He’s holding Occidental Petroleum like a fortress.

Berkshire owns 28% of the company and has continued buying.

Buffett believes in U.S. energy, oil, and carbon capture technology. He’s not letting this one go.

He’s also keeping VeriSign.

This company controls .com and .net domains, essentially giving it a monopoly over some of the most valuable internet real estate.

Buffett loves monopolies.

Then there’s Sirius XM. The stock is down 59%, but Buffett isn’t worried. Most new cars come with Sirius built-in.

And once customers start using it? They tend to stay.

He’s also snapping up Constellation Brands.

The company behind Corona and Modelo saw its stock fall 25%. Buffett jumped on the opportunity.

And let’s not forget Domino’s and Pool Corp.

Both are consumer-driven stocks that Buffett quietly added in late 2024.

Buffett’s International Moves

Buffett isn’t just focused on the U.S.

He’s taking a big bet on Latin America. Berkshire now owns nearly 7% of Liberty Latin America.

Analysts predict a 53% upside.

Then there’s Nu Holdings, a fast-growing Brazilian digital bank. Analysts expect it to jump 34.6% in value.

It’s a move that mirrors his shocking investment in Japanese trading houses.

That bet turned into one of the most profitable decisions of his career.

Buffett Thinks the Market Is Overvalued

The Buffett Indicator his favorite stock market valuation metric is flashing red.

Market cap to GDP? 211%. The highest level in 75 years.

Historically, when this ratio goes above 200%, the market corrects within two years.

If history repeats, stocks could drop 40% before hitting fair value.

Buffett sees it. He knows stocks are expensive. So he’s waiting.

Cash Is King for Now

While the world chases AI stocks, Buffett is quietly moving billions into short-term U.S. Treasury bonds.

They’re paying 4-5% yields a return not seen in over a decade.

It’s simple math. Stocks look overpriced.

Bonds finally pay. Buffett is taking the guaranteed return while everyone else gambles.

Buffett isn’t chasing the AI hype. He’s not buying crypto.

He’s not touching meme stocks.

He’s sticking to what works.

For everyday investors? He still recommends S&P 500 index funds.

Most people can’t beat the market, so he says don’t try.

For himself? He’s waiting for the right moment.

His golden rule: "Be fearful when others are greedy, and greedy when others are fearful."

Right now? The market is still greedy.

So Buffett waits. But when the moment comes? He’ll be ready.

Love what you're reading?

Chasing.money is a small pub with big ideas. Help us grow! Share our newsletter with those who want the real story.

Reading this in your email? Forward it to your contacts and help us reach more people. Thank you for your support!

Disclaimer: This newsletter is for educational purposes only and should not be considered financial advice. Always conduct your own thorough research before making any investment decisions.