Warren Buffett Discusses Tariffs and Future Leadership at Berkshire Hathaway’s Annual Meeting | CNN Business

Warren Buffett recently opened up about his views on tariffs during a big event in Omaha, Nebraska. He referred to trade wars as a “big mistake,” emphasizing that trade shouldn’t be used as a weapon. At 94, Buffett’s insights are closely watched, especially during times of economic uncertainty.

He noted that the U.S. has achieved remarkable growth over the past 250 years and urged the nation to focus on its strengths while letting other countries do the same. This perspective echoes the sentiments of many economists who believe in the power of open trade to spur innovation and growth. In fact, a 2021 report from the World Trade Organization highlighted that global trade lifts millions out of poverty each year.

Buffett’s comments come at a time when Berkshire Hathaway has reported declining earnings, with a notable 14% drop in the first quarter. He mentioned that tariffs could negatively affect the company’s performance. Berkshire’s quarterly report warned that unpredictability in international trade could impact its investments. In a world where nearly 60% of global trade involves tariffs, the stakes are high for businesses worldwide.

During the meeting, Buffett reminded shareholders that a solid investment strategy sometimes means sitting on cash. Currently, Berkshire holds about $347 billion, up from $334.2 billion. Buffett believes that being cautious and not feeling pressured to invest immediately can be financially beneficial. This strategy resonates with investment experts who advise against impulsive decisions in the stock market.

Buffett also highlighted his relationship with Apple, praising CEO Tim Cook for leading the company effectively. Berkshire has major stakes in Apple, which was valued at nearly $70 billion in its last quarterly report. Interestingly, Buffett reduced Berkshire’s stake in Apple by about 50% in early 2024, which is unusual for him, known for holding onto stocks long-term.

Despite recent market volatility, Buffett reassured investors, downplaying the panic. He pointed out that shifts in the market are often short-term concerns. Historical data shows that markets can fluctuate greatly but usually recover, emphasizing the importance of a long-term investment approach.

As the event wrapped up, Buffett teased discussions about his succession plans, hinting at the future of Berkshire Hathaway. As a key figure in investing for decades, his insights on navigating economic challenges will continue to shape market strategies for years to come.

For more details on economic trends and Buffett’s insights, you can explore reports from the Brookings Institution or follow updates from major news outlets.

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