Paul William Harmon

First, let's understand what happened. In April 2025, Trump imposed a sweeping 10% tariff on all imports, citing a national emergency caused by trade deficits. Within 48 hours, global markets lost $5 trillion in value as investors panicked over disrupted supply chains. But Buffett was ready...

Throughout 2024, while markets were soaring to record highs, Buffett was quietly building a fortress. Berkshire Hathaway doubled its cash reserves to an unprecedented $334 billion. He sold 67% of his Apple holdings and reduced his Bank of America stake by 34%. Why? He saw something others missed:

The signs were everywhere if you knew where to look. The S&P 500's price-to-earnings ratio was 67% above historical norms. Treasury yields climbing above 4% made bonds attractive again compared to overvalued stocks. Buffett's response was classic: "Be fearful when others are greedy."

When Trump's tariffs hit, chaos ensued. The Dow plunged over 2,200 points—its worst day since March 2020. Tech stocks collapsed as supply chain fears mounted. Elon Musk watched $130 billion evaporate from his net worth as Tesla's stock nosedived 25%. Meanwhile, Buffett was smiling...

His master stroke? Japanese trading houses. While others panicked, Buffett increased his stakes in Japan's five largest trading conglomerates to nearly 10% each. These diversified businesses operate across energy, metals, food production, and logistics—largely insulated from US-China trade tensions. The result was stunning:

As the S&P 500 fell 13% year-to-date, Berkshire Hathaway's Class B shares rose 9.41%. Buffett added $12.7 billion to his net worth—the only top billionaire to gain during this period. His cash fortress didn't just protect him; it positioned him to capitalize when assets became undervalued. This embodies his core philosophy:

"The stock market is a device for transferring money from the impatient to the patient." Buffett's patience isn't passive—it's strategic. While others chase quick returns, he builds reserves during good times to deploy during downturns. His contrarian approach has three key lessons for all investors:

1. Liquidity is power during uncertainty Having cash reserves isn't just defensive—it's offensive when opportunities arise. 2. True diversification means looking beyond borders His Japanese investments provided stability while US markets tumbled. 3. Value investing principles protect from speculative bubbles

The tariff crisis proved once again why Buffett's philosophy endures. While tech billionaires saw their paper wealth evaporate, the 94-year-old Oracle of Omaha demonstrated why patience, preparation, and perspective trump panic every time. As he often says: "The best chance to deploy capital is when things are going down."

This isn't the first time Buffett has profited during chaos. During the 2008 financial crisis, he invested $5 billion in Goldman Sachs when others fled. That decision netted Berkshire over $3 billion in profit. Great investors don't predict crises—they prepare for them. That's the real chess move.

As markets continue to adjust to tariffs and trade tensions, remember Buffett's approach: - Build reserves in good times. - Maintain a long-term perspective. - Act decisively when others panic. - Seek value across borders. The greatest opportunities often emerge from the greatest disruptions.

I am Paul Harmon: • COO/President & operational strategist in tech • Leadership mentor focused on scaling high-performance teams • Champion of data-driven decision making & sustainable growt

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