Billionaires Bet Big on Own Companies Amid Trump Tariff Panic

In response to the market panic triggered by President Trump's announcement of stringent U.S. tariff policies, several billionaires with a combined net worth of approximately $100 billion chose to increase their holdings in their own companies' stocks. This strategic move was seen as a bet on an eventual market rebound and a demonstration of confidence in the long-term prospects of their businesses.

Among the notable billionaires who increased their stakes in their own companies were the Persson family, who bought more shares in H&M, the Lundin family, who increased their holdings in Lundin Mining, and Carlos Slim, who purchased shares in PBF Energy. These moves came as a response to the market turmoil caused by the tariff policy, which had led to significant declines in stock prices across various sectors.

The decision to buy more shares in their own companies was a proactive measure aimed at stabilizing the market and mitigating the potential negative impact of the tariff policy on their companies' stock prices. By increasing their stakes, these billionaires sent a positive signal to other investors, demonstrating their belief in the resilience of their companies and their commitment to supporting their businesses through challenging times.

Despite the market volatility, the billionaires' decision to invest more in their companies was seen as a positive development. It provided the necessary capital for growth opportunities and helped navigate the uncertain economic environment. This move was particularly significant given the warnings from prominent Wall Street figures, including investment manager Bill Ackman and Morgan Stanley's chief executive officer, Jamie Dimon, who had previously cautioned about increasing risks. Legendary investor Bill Gross also warned of continued market turbulence, suggesting that investment opportunities might arise in the coming week.

Historically, these billionaires have shown a tendency to invest in areas they are familiar with. For instance, Slim and his family had previously bought a significant amount of PBF Energy stock during the pandemic when the company's stock price plummeted. As global gasoline demand eventually recovered, PBF Energy's stock price surged by 600%, resulting in substantial gains for the Slim family.

While these billionaires actively sought investment opportunities, they were not immune to the recent market turbulence. According to the Bloomberg Billionaires Index, the world's 500 wealthiest individuals experienced a combined loss of approximately $536 billion in the two days following the tariff announcement, marking the largest two-day loss in the index's history. Even close associates of Trump, such as Elon Musk, saw their wealth decline by over $100 billion this year, with Musk's net worth falling below $300 billion for the first time since November 2022.

In contrast, some high-net-worth individuals in Asia chose to reduce their stock investments in response to margin calls triggered by market volatility. This divergence in investment strategies highlights the varying approaches to navigating market uncertainty among the world's wealthiest individuals.