Criticizing Trump's tariff implementation, Buffet asserts that the U.S. should refrain from employing 'trade as a tactical offensive tool'
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The Oracle of Omaha himself, Warren Buffett, let loose his frustration with President Donald Trump's tariff policies on a Saturday rant. The 94-year-old chairman and CEO of Berkshire Hathaway expressed his concerns about the Trump administration's trade strategy and its negative impact on international relations and global markets.
At Berkshire Hathaway's annual meeting in Omaha, Nebraska, Buffett railed against the chaotic way the tariffs have been implemented, stating that using trade as a weapon creates adversaries out of friendly nations. "Balanced trade is good for the world," and "trade should be a bridge, not a sword," Buffett emphasized, adding that America's economy thrives when the rest of the world flourishes.
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Buffett, known for his cautious optimism, expressed his worries about America's growing isolation and the harmful effects it could have on our economy. "We should be finding ways to trade peacefully with the rest of the world—not picking fights," said the legendary investor.
Trump has defended his tariffs, indicating they are aimed at achieving fairer trade practices for the United States. However, Buffett emphasized the importance of global cooperation to foster economic growth and prosperity for all.
Despite his concerns, Buffett remained confident when discussing Berkshire Hathaway's financial performance, expressing his optimism about the future of the company and the world at large. "I wouldn't get discouraged," he said. "We're all pretty lucky."
Unfortunately, Buffett's statement came amidst Berkshire Hathaway's significant decline in first-quarter profits, reporting $4.6 billion, a sharp drop from last year's $12.7 billion. Operating earnings dropped 14%, primarily due to unrealized losses on stocks, such as Apple, and major insurance losses from Southern California wildfires, according to the company.
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Berkshire Hathaway, known for its diverse portfolio of investments in companies like Geico, Dairy Queen, Apple, Coca-Cola, and American Express, continues to thrive despite the economic turbulence. Buffett downplayed concerns about Berkshire's cash reserve, revealing the company almost spent $10 billion recently but remains patient for the right investment opportunities.
Berkshire's share price has withstood market turmoil this year, rising 18.9%, while the S&P 500 fell 3.3%.
Reuters contributed to this report.
- Warren Buffett, expressing his concerns about the Trump administration's tariff policies, stated that using trade as a weapon creates adversaries out of friendly nations during Berkshire Hathaway's annual meeting in Omaha, Nebraska.
- Buffett, known for his cautious optimism, expressed his worries about America's growing isolation and the harmful effects it could have on the nation's economy.
- According to Buffett, the American economy flourishes when the rest of the world does, emphasizing the importance of global cooperation for fostering economic growth and prosperity.
- Despite Berkshire Hathaway's significant decline in first-quarter profits, Buffett remains confident about the future of the company and the world at large, expressing his optimism during the annual meeting.
- Berkshire Hathaway's unrealized losses on stocks, such as Apple, and major insurance losses from Southern California wildfires, were primary factors contributing to the drop in operating earnings in the first quarter.
- Buffett, the chairman and CEO of Berkshire Hathaway, downplayed concerns about the company's cash reserve, revealing that Berkshire nearly spent $10 billion recently but remains patient for the right investment opportunities.
- Despite the economic turbulence, Berkshire Hathaway's diverse portfolio of investments in companies like Geico, Dairy Queen, Apple, Coca-Cola, and American Express continues to thrive, with Berkshire's share price rising 18.9% this year while the S&P 500 fell 3.3%.
