Warren Buffett predicted in April 2016 that his company, Berkshire Hathaway, would be just fine whether Donald Trump or Hillary Clinton became president. Buffett made the prediction at time when most analysts were expecting a Trump presidency to bring markets southward — and so far, so good.
The Oracle of Omaha’s net worth has risen $6.4 billion, or 9%, since the Nov. 8 election, according to Bloomberg‘s Billionaire Index. By Tuesday, Buffett’s net worth reached $73.9 billion, making him the world’s second richest man behind Bill Gates.
Buffett’s worth increase largely comes from his 18% stake in Berkshire. Since Trump’s election, shares of the company have risen 10.8%. And in a Friday interview on Charlie Rose, Buffett revealed that the company added some $12 billion in common stocks to its investment portfolio since the Nov. 8 election. Buffett didn’t specify what investments had been made.
Berkshire also holds an 8% stake in IBM. Shares of the tech company have risen 12% since the election, boosting the worth of Berkshire’s stake to $14 billion.
Shares of Berkshire, as well as those for other companies, rose as investors started to anticipate more business-friendly policies from the Trump administration. It was also known as the “Donald Trump rally.”
Scandal-ridden Wells Fargo, for instance, has risen 20.3% since the election as investors anticipate weaker banking regulation and higher interest rates to boost the bank’s earnings. The bank is Berkshire’s second largest holding, according to the insurance giant’s September filings with the Securities and Exchange Commission. That stake is now worth roughly $26.9 billion.