The U.S. stock market had a rough start in the first quarter (Q1) of 2025, with the S&P 500 slipping 4.23% to 5,633 points—now nearly 9% below its February peak and back at levels not seen since September.
The Nasdaq hasn’t fared much better, down 14% from its all-time high in December, as macroeconomic uncertainty continues to weigh heavily on investor sentiment.
Against this backdrop of volatility, two of the market’s most iconic investors Warren Buffett and Michael Burry have delivered sharply contrasting portfolio performances in the first quarter.
Picks for you
While Buffett’s Berkshire Hathaway (NYSE: BRK.A) saw its top holdings lose ground amid the broader downturn, Michael Burry, the famed ‘Big Short’ investor known for predicting the 2008 subprime mortgage crisis, posted double-digit gains—thanks to his timely bet on a set of major Chinese tech stocks.
Buffett’s big bets lose steam
Warren Buffett, the chairman and CEO of Berkshire Hathaway, found himself on the back foot in Q1. According to the firm’s latest 13F filing, three of its top five holdings Apple (NASDAQ: AAPL), American Express (NYSE: AXP), and Bank of America (NYSE: BAC)—accounted for a combined 56% of the portfolio at the end of 2024.
All three posted negative returns between January and March 31, 2025. Apple, which accounts for over a quarter of Berkshire’s holdings, fell 10.34%, closing the quarter at $223.19. American Express dropped 8.86% to $269, and Bank of America slid 5.60% to $41.73 as of March 31.
While there were some bright spots—Coca-Cola (NYSE: KO) rose 15% to $71.87, and Chevron (NYSE: CVX) gained 16% to $168.51 the positive performance of these stocks wasn’t enough to offset the drag from Buffett’s tech and financial positions.
As a result, Berkshire’s top 10 stock portfolio ended the quarter in negative territory, down 3.9%. That being said, Buffett’s investment conglomerate continued to outperform the broader stock market, with shares rising almost 17% in Q1, trading at $532.58 at press time.
Michael Burry’s China bet pays off with double-digit gains
Meanwhile, Michael Burry, the founder of Scion Asset Management, delivered an impressive 16.44% return over the same period—one of the highest among major fund managers tracked by NH Investment & Securities.
Beginning in late 2024, Burry doubled down on Chinese tech stocks, building sizable positions in companies such as Alibaba (NYSE: BABA), JD.com (NASDAQ: JD) , and Baidu (NASDAQ: BIDU), according to the latest quarterly filing. So far, the contrarian bet has paid off.
Since the start of the year, Alibaba has surged from $84.74 to $132 an impressive 56% gain. JD.com has climbed 19% to $41.32, while Baidu rose 8% to $91.63.
Broader market strength in the region also supported Burry’s strategy, with China’s benchmark CSI 1000 Index up 8% and Hong Kong’s Hang Seng Index gaining 18.6% in the same period
Even though Burry has gradually trimmed some Chinese positions, they still represent a core part of his strategy and the outperformance speaks volumes about his contrarian outlook.
Featured image from Shutterstock
