Warren Buffett's Net Worth Reaches £123.96 Billion ($165.4 billion) as Market Volatility Boosts His Investments

Market volatility and sticky inflation have made it tough for investors to safely navigate the complex macroeconomic landscape.

Berkshire Hathaway chair Warren Buffett's net worth stands at £123.96 billion ($165.4 billion), according to Forbes.

The billionaire investor's vast fortune has grown even further in recent times, especially after most hedge funds and asset managers began to shuffle their portfolios to reduce losses incurred during the recent tariff-induced market crash.

Sticky inflation and market volatility have made it difficult for investors to maneuver the complex macroeconomic landscape.

Moreover, experts say the US government's changing policies and the federal system's internal shifts have increased the possibilities of a recession.

At the 2022 Berkshire Hathaway annual shareholders meeting, Buffett explained how investing in knowledge and self-improvement makes you an asset, granting you access to valuable opportunities easily for wealth growth.

"Whatever abilities you have can't be taken away from you. They can't be inflated away from you," he said. "The best investment by far is anything that develops yourself, and it's not taxed at all."

Real Estate To Hedge Inflation, Defer Taxes

When it comes to tangible assets, Buffett believes real estate is a "good investment" during times of inflation.

"They're the businesses that you buy once, and then you don't have to keep making capital investments subsequently. So, you do not face the problem of continuous reinvestments involving greater and greater dollars because of inflation," the Oracle of Omaha had said in the 2015 Berkshire Hathaway shareholders meeting.

Real estate investors can also postpone taxes on real estate transactions completely by utilizing 1031 exchanges. The rule allows you to defer capital gains tax on the sale of an investment property by reinvesting the proceeds into another like-kind property.

This rule can save you a significant amount of money because the proceeds from selling a property within one year of owning it are treated as ordinary income, which can increase your tax rates to up to 37%. Meanwhile, long-term capital gains tax rates for properties can be up to 20% based on your income tax bracket.

Stocks: Only If You Are Prepared To Face Market Upheavals

Buffett has encountered the worst recessions, double-digit inflation rates, and extreme volatility in the past half-century and has still managed to generate enormous wealth over the decades.

He follows his investment philosophy of buying great businesses at low prices and holding those investments for the long term.

While ensuring he invests in high-quality businesses with strong fundamentals, Buffett also looks for efficiency, strength, negotiating power, and the management's vision. This strategy has helped his portfolio thrive during inflationary environments. He also understands that stocks are subject to broad market forces.

The ongoing market downturn has led many people to make hasty financial decisions, such as tapping into their 401(k)s or trading stocks during volatile sessions. Experts say these actions can derail portfolios, wipe out years of savings, and negatively impact financial goals over the long run.

"You've got to be prepared when you buy a stock to have it go down 50% or more, and be comfortable with it... but some people are not really careful. Some people are more subject to fear than others," Buffett had said.