Warren Buffett, speaking to thousands of Berkshire Hathaway shareholders at the company’s annual meeting on Saturday, issued a stark warning against using trade as a weapon. The 94-year-old investor’s remarks seemed to be a veiled criticism of US President Donald Trump’s tariffs, which have sparked global economic unrest.
“It’s a big mistake in my view when you have 7.5 billion people who don’t like you very well, and you have 300 million who are crowing about how they have done,” Buffett said.
He emphasised the need for balanced trade and stressed that trade should not be weaponised in the way the Trump administration has done with widespread tariffs.
Buffett’s perspective on global trade
Buffett made it clear that the United States should engage in trade with the rest of the world rather than adopting a confrontational approach. “We should be looking to trade with the rest of the world. We should do what we do best and they should do what they do best,” he stated.
Buffett’s comments came as tariffs dominated the shareholder questions for the day, with many attendees eager to hear his views on the economic consequences of the trade wars.
Berkshire’s cash reserves and investment strategy
Another major topic of discussion was Buffett’s massive cash reserves. Berkshire Hathaway currently holds $347.7 billion in cash, and many shareholders were eager to understand why this large amount remains idle. Buffett admitted that he has not found many attractively priced investments in recent times but forecasted that Berkshire would soon be flooded with opportunities.
“One day, we’ll be bombarded with opportunities that we will be glad we have the cash for,” he said, explaining the company’s cautious approach to investments.
Lower profits for first quarter
Berkshire Hathaway reported a significant drop in profits for the first quarter of 2025. The company earned $4.6 billion, or $3,200 per Class A share, which is a sharp decline from $12.7 billion, or $8,825 per Class A share, during the same period last year. The decrease was attributed to a sharp drop in the value of its investments and $860 million in insurance losses tied to policies written before the devastating Southern California wildfires.
However, Berkshire’s operating earnings, which exclude the volatility of investment values, still experienced a 14% decline, totaling $9.6 billion, or $6,703 per Class A share, down from $11.2 billion, or $7,796 per share last year.
Buffett’s focus on operating earnings
Warren Buffett continues to urge investors to focus on operating earnings rather than quarterly fluctuations in investment values.
