Name: Warren Buffett is Preparing for a Total Collapse of The US Economy
Uploaded: 2026-03-10T18:01:53.000Z
Duration: 17 min 40 s
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Here is how Warren Buffett has been preparing for the invasion of Iran.

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It seems like Warren Buffett couldn't possibly know that there is a war, because the United States has surprisingly launched this war, and

But if you look at what Warren Buffett has been doing lately, over the last five, seven years, he perfectly positioned himself to win from this war.

And Warren Buffett has a history of predicting crushes and massively taking advantage out of them.

For example, in 2008, Warren Buffett was the richest person in the world because when the US Economy collapsed, he was the only person with tens of billions of dollars.

And he purchased these banks at a huge discount, which made him the world's wealthiest person.

And going back to early 2000s, how could Warren Buffett predict the 2008 financial crisis?

And this time he also predicted the US Iran war.

The war is basically becoming a huge regional war.

And it seems like this war is going to last for a very long time.

So on one side, you have the United States and the countries that support the US where the US has military bases all across this part of the world against Iran.

Now, every single war has winners and losers.

Some people are going to make a lot of money, and

some people are going to lose a lot of money.

And that's why they say that a war is a massive transfer of wealth.

So if you know how to, to invest and you know which assets to buy during a war, you will emerge victorious.

In this particular war, oil prices have already surged to over $100.

And if this war is going to continue, then oil prices could cross even $200 within a month, or maybe two.

Because this part of the world is responsible for 20% of the global supply of oil.

And because the Strait of Hormuz, which is this part of the world, is, is closed by Iran, which is.

Which means that now there is a shortage of oil in the world, which is why oil prices have risen so much.

So oil companies right now are making more money than ever.

He invests $10 billion in Occidental Petroleum.

This is very strange because in 2019, the world was talking about renewable energy.

The rest of the world is moving into renewable energy.

And it seemed like buying oil was a failed strategy.

The global economy goes into Covid and oil prices go below zero.

For the first time in history, we had negative oil prices.

And yet Warren Buffett buys Dominion Energy.

So why is Warren Buffett buying so much oil?

In 2024, he purchased the remaining 20% in Berkshire Hathaway's energy department.

It's worth about a trillion dollars and it has different departments.

And in the Energy Department, 20% of that was owned by other investors.

He also buys more of Occidental Petroleum in 2025, which is literally a year ago.

In 2026, he buys Oxcam, which is a chemical company that refines oil.

So basically, he spends most of his money, or not most of his money, but

billions of dollars over the last couple of years just buying oil companies because he knew that there is a crisis coming in the Middle east and it's going to lead oil prices to rise.

The United States does not need Middle Eastern oil.

But if global oil prices rise, then these companies are going to make a lot of money.

The second largest winners out of this war are insurance companies.

The global world is interconnected and ships go through one part of the world to another.

So for example, the oil tankers that go from Middle east and they have to go to the European Union or to Asian countries where they supply them with oil, they need to buy insurance.

But because right now this is a war zone, insurance prices have spiked to the roof.

But this is not just about the oil companies or the companies that need to ship oil.

Take any other company that relies on global shipping, for example, iPhones that are being manufactured in China, and

they have a lot of pieces for global shipping.

So ships are moving from one part into another.

And there is a very important part in the world that is called the Swiss Canal.

If you don't want to cross through the entire Africa and you want to cross that road, for example, through the Swiss Canal, then you have to go through the Red Sea.

But the Red Sea is also a subject of a war zone right now, which means that insurance prices on ships are extremely expensive right now.

And guess what Warren Buffett has been doing lately.

In 2022, he spent $11.6 billion buying this insurance company.

In 2018, he spent $2.5 billion buying this insurance company.

He also purchased the remaining of the Berkshire Hathaway's insurance department.

But you cannot just possibly insure any ship.

If you want to sell an insurance, then you need to have enough cash to back it up.

If you don't have the cash, then you can't sell insurance.

So the probability of ships being sank in this part of the world is huge, which means that now you're going to raise your prices on insurance, but

at the same time, you need more cash to insurance the exact same amount of ships.

Warren Buffett right now is sitting on $400 billion worth of cash, which means that he is probably the only company in the world or the only person in the world that can sell insurances to the ships that are crossing this part of the world, which him perfectly positioned to make billions of dollars out of this crisis.

So it's not a surprise that he has been massively investing in insurance companies.

He also has purchased a stake in a precision caspot.

This is literally a defense company that sells very high technology to other defense companies that are building expensive and very advanced missiles.

So Warren Buffett is literally, right now, is a huge winner out of this war.

But if you want to perfectly position yourself, then you have to sell your losers.

So who are the largest losers out of this war?

So this is a war primarily against China.

Most of their sales comes outside the United States.

And iPhone has a lot of components, which means that most of these components comes from all across the globe to China.

And they're being assembled in China and manufactured there and then shipped to the rest of the world, including the United States.

Now, oil prices have risen substantially, which means that the cost of iPhones have risen.

Insurance companies or insurance prices have risen, which means that the cost of transporting them across the globe have also substantially risen.

And because this part of the world also represents a huge chunk of Apple's clients, it means that Apple is one of the largest losers of this war.

That is why he slashed his stake in Apple by 75%.

He also reduced his stake in Amazon by 77%.

Because Amazon is not just a website where you go and you just order stuff.

And a war is a logistical nightmare for any company that does logistics, because now the cost of fuel have risen substantially, the cost of insurance have risen substantially, and

you're basically losing billions of dollars just because this war has happened.

Warren Buffett has also entirely exited his airline businesses.

Right now he doesn't even hold a single airline.

And airlines are suffering the most because first of all, you can actually fly in this part of the world, which means that your costs extremely rise because of this war.

Secondly, the because oil prices have risen.

Now, if your business was already having very slim profits, imagine what happens right now, when energy prices double or maybe triple, he also exited all of his banks.

He was a huge investor in JP Morgan, in Chase, in Morgan Stanley, but

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Warren Buffett is Preparing for a Total Collapse of The US Economy

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