'He's not a trader': Hedge fund manager on why retail investors shouldn't copy Warren Buffett
Berkshire Hathaway's third-quarter financial report showed Buffett's holding company had sold more stock than it purchased, even as it reported a record $382 billion in cash and U.S. Treasury bills
- Nov 4, 2025,
- Updated Nov 4, 2025 6:03 PM IST
Hedge fund manager Akshat Shrivastava on Tuesday weighed in on Berkshire Hathaway chairman Warren Buffett's decision to hold over $300 billion in cash, arguing that the legendary investor is doing exactly what suits his investment style - waiting for distressed deals, not chasing retail-level returns.
"Warren Buffett has been sitting on 300+Bn$ cash since 2024. In Jan 2024: QQQ was at 400$. Now it is 634$. Total gains lost: 58.5%. Warren Buffett is an investing genius. And, he is right in sitting on cash for his multi-billion$ portfolio. He is in the business of buying distressed deals. Not retail investing," Shrivastava wrote on X.
Citing Buffett's past crisis-era moves, he added: "After the 2008 crisis, he bought Goldman Sachs - $5 billion in preferred stock, warrants for $5 billion in common shares, 10% annual dividend. General Electric — $3 billion in preferred stock, 10% annual dividend, stock warrants. Dow Chemical — $3 billion, and Wrigley — $6.5 billion in bonds and preferred stock. He made roughly 100–150% returns on each of these deals."
Summing up his argument, Shrivastava said, "Basically, he is a liquidity provider, not a retail investor. It is funny to see retail people with 100K trying to copy him. Yes, please go ahead. Wait some more. When the next crisis hits, I will wait for you to open your cheque-book trying to buy 10% Google."
Berkshire Hathaway's third-quarter financial report showed Buffett's holding company had sold more stock than it purchased, even as it reported a record $382 billion in cash and U.S. Treasury bills, according to Nasdaq. The report suggested Buffett's reluctance to deploy cash stemmed from concerns about high market valuations, with Berkshire remaining a net seller despite robust liquidity.
Meanwhile, on Tuesday, the Sensex dropped 519 points to close at 83,459.15, and the Nifty fell 165.70 points to 25,597.65, tracking weakness across Asian and European markets. Foreign Institutional Investors (FIIs) sold equities worth ₹1,883 crore, while Domestic Institutional Investors (DIIs) bought ₹3,516 crore, exchange data showed.
Oil prices also cooled, with Brent crude slipping 1.34% to $64.02 a barrel, as global investors turned wary of persistent volatility and overvalued tech stocks — the same caution Buffett seems to be signaling.
Hedge fund manager Akshat Shrivastava on Tuesday weighed in on Berkshire Hathaway chairman Warren Buffett's decision to hold over $300 billion in cash, arguing that the legendary investor is doing exactly what suits his investment style - waiting for distressed deals, not chasing retail-level returns.
"Warren Buffett has been sitting on 300+Bn$ cash since 2024. In Jan 2024: QQQ was at 400$. Now it is 634$. Total gains lost: 58.5%. Warren Buffett is an investing genius. And, he is right in sitting on cash for his multi-billion$ portfolio. He is in the business of buying distressed deals. Not retail investing," Shrivastava wrote on X.
Citing Buffett's past crisis-era moves, he added: "After the 2008 crisis, he bought Goldman Sachs - $5 billion in preferred stock, warrants for $5 billion in common shares, 10% annual dividend. General Electric — $3 billion in preferred stock, 10% annual dividend, stock warrants. Dow Chemical — $3 billion, and Wrigley — $6.5 billion in bonds and preferred stock. He made roughly 100–150% returns on each of these deals."
Summing up his argument, Shrivastava said, "Basically, he is a liquidity provider, not a retail investor. It is funny to see retail people with 100K trying to copy him. Yes, please go ahead. Wait some more. When the next crisis hits, I will wait for you to open your cheque-book trying to buy 10% Google."
Berkshire Hathaway's third-quarter financial report showed Buffett's holding company had sold more stock than it purchased, even as it reported a record $382 billion in cash and U.S. Treasury bills, according to Nasdaq. The report suggested Buffett's reluctance to deploy cash stemmed from concerns about high market valuations, with Berkshire remaining a net seller despite robust liquidity.
Meanwhile, on Tuesday, the Sensex dropped 519 points to close at 83,459.15, and the Nifty fell 165.70 points to 25,597.65, tracking weakness across Asian and European markets. Foreign Institutional Investors (FIIs) sold equities worth ₹1,883 crore, while Domestic Institutional Investors (DIIs) bought ₹3,516 crore, exchange data showed.
Oil prices also cooled, with Brent crude slipping 1.34% to $64.02 a barrel, as global investors turned wary of persistent volatility and overvalued tech stocks — the same caution Buffett seems to be signaling.