Before announcing plans to step down as Chief Executive of Berkshire Hathaway later this year, Warren Buffett defended global trade. He argued that tariffs should not become tools of economic conflict. According to Buffett, the United States benefits when other nations also succeed.
Buffett on global prosperity
Buffett made these comments during Berkshire Hathaway’s annual shareholder meeting on Saturday. The remarks followed a turbulent month for markets, with concerns rising over US President Donald Trump’s tariff policies.
“Balanced trade benefits the world,” said Buffett, 94, who has led the company for 60 years. “Trade should not be turned into a weapon,” he added. He believes it’s unwise for a few countries to celebrate winning at the expense of others. “The more prosperous the rest of the world becomes, the more prosperous we’ll become,” he said.
Berkshire Hathaway took a cautious stance during the first quarter, with its cash reserves increasing to a record $347.7 billion.
During the meeting, Buffett spent over four hours answering questions from shareholders. He was joined by Vice Chairmen Greg Abel – expected to take over as CEO – and Ajit Jain.
Buffett avoided commenting directly on Elon Musk’s cost-cutting initiative. However, he did express concern about rising US budget deficits. He described them as unsustainable and urged the government to take action.
“That’s not a job I want, but it’s one that needs doing,” he said, criticising Congress for its inaction. The audience responded with applause.
He also encouraged investors to stay calm during market downturns. If sudden declines cause anxiety, he suggested they reconsider their investment approach. Despite current challenges, Buffett remained optimistic.
“We’re always evolving,” he said. “If I were born today, I’d make sure I could grow up in the United States. We’re fortunate.”
Cash strategy and stock market caution
Berkshire’s operating profit fell by 14% in the first quarter, reaching $9.64 billion. Wildfires in southern California contributed to insurance losses. Despite a strong 2024 performance, Buffett noted that 2025 would be more difficult. Insurance pricing has dropped while risks have increased.
Quarterly net income declined by 64% to $4.6 billion, partly due to unrealised losses in holdings like Apple. Although its cash pile grew from $334.2 billion, Berkshire hasn’t repurchased any shares since May. It has also sold more stocks than it has bought for 10 consecutive quarters.
Buffett explained that buying opportunities are rare and unpredictable. He said the firm nearly made a $10 billion purchase recently, but didn’t go through with it.
Greg Abel supported Buffett’s long-term approach to holding cash. He said large reserves provide strategic flexibility and independence during tough periods.
“We only buy when the value justifies the risk,” Abel added.
Both Buffett and Abel reaffirmed their confidence in investments made in five major Japanese trading houses: Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo. They said Berkshire could keep these stakes for 50 years.
“We’re building relationships,” Abel said. “We hope to do significant business with them.”
Ajit Jain added that Geico has improved its technology to assess driver behaviour. This allows more accurate pricing based on risk.
A farewell to a financial icon?
Berkshire’s share price has increased by 18.9% in 2025. Over the same period, the S&P 500 index dropped by 3.3%. Many investors view Berkshire’s varied portfolio as a reflection of the US economy. That economy shrank in the first quarter for the first time in three years.
The company owns a diverse set of businesses, including BNSF Railway, Geico, energy firms, HomeServices real estate, and Fruit of the Loom.
Berkshire’s annual meeting remains a major draw. Tens of thousands travelled to Omaha, Nebraska for the event. Some arrived long before doors opened at 7 a.m., despite the cold 4°C weather.
Wang Yu, who flew in from Guangzhou, China, arrived at 11 p.m. the night before. “Warren is getting old, so I didn’t want to miss this chance,” he said. “His ideas are simple, but being here is something you remember.”
