Mr. Warren Buffett, investor extraordinaire and CEO of Berkshire Hathaway, recently expressed his concerns over the current administration’s draconian trade policies. These measures, he argues, would have disastrous impacts on the overall economy. Although he did not name President Donald Trump directly, his critique was clear: imposing punitive tariffs on global trade is a significant mistake.
Buffett’s remarks came in light of Berkshire Hathaway’s first-quarter earnings report, which highlighted how tariffs and other geopolitical tensions have introduced “considerable uncertainty” for the conglomerate. He emphasized that trade should not serve as a weapon against other nations, reflecting his belief in open and fair trade practices.
Third, in many ways 2024 represents a complete reversal of Berkshire Hathaway’s investment strategy. To do that, the company plans to continue to sell off more than $134 billion worth of stock. This would mean Buffett has sold stocks for the tenth straight quarter. Perhaps he’s playing it safe due to the prevailing nasty economy. Even Berkshire Hathaway’s two largest equity holdings, Apple and Bank of America, suffered big losses. Consequently, these drops made up nearly all of the stock decreases.
The tech company’s cash reserves surged to $347 billion — an all-time high for the company — at the end of March. This increase was largely a result of the recent sell offs. This financial maneuvering underscores Buffett’s cautious approach amid rising market volatility, particularly following the White House’s introduction of the highest import tariffs seen in generations. The implementation of these levies has led to radical boom and bust cycles on Wall Street.
At 94 years old, Buffett is rightly considered the “Oracle of Omaha.” His sharp observations about the state of the American economy largely come from Berkshire Hathaway’s wide ranging portfolio that includes insurance, transportation, energy and retail, just to name a few sectors. Impressive companies within its parent company’s umbrella—Berkshire Hathaway—include Geico, Burlington Northern, and Dairy Queen.
In his remarks, Buffett looked back on America’s founding path to greatness.
“The United States won. I mean, we have become an incredibly important country, starting from nothing 250 years ago. There’s not been anything like it.” – Warren Buffett
Continuing to ring the alarm about the negative impact of today’s trade policies, he put it this way,
“It’s a big mistake, in my view, when you have seven and a half billion people that don’t like you very well, and you got 300 million that are crowing in some way about how well they’ve done – I don’t think it’s right, and I don’t think it’s wise.” – Warren Buffett