Warren Buffett Slams Tariffs at 2025 Berkshire Meeting
Warren Buffett criticizes Trump tariffs, warns trade should not be a weapon, and shares insights at Berkshire Hathaway 2025 shareholder meeting.
OMAHA, Nebraska - The 2025 Berkshire Hathaway shareholder meeting, often dubbed the Woodstock for Capitalists, drew thousands to hear Warren Buffett, the 94-year-old investing legend, share his wisdom. Held on May 3 at the CHI Health Center, the event was a mix of reflection, forward-looking advice, and pointed commentary on global trade. Buffett, joined by Vice Chairman Greg Abel and insurance chief Ajit Jain, tackled pressing questions from shareholders, with tariffs topping the agenda.
Buffett Warns Against Weaponizing Trade
Buffett did not mince words when addressing President Donald Trump tariff policies. He called punitive tariffs a big mistake, emphasizing that trade should not be a weapon. He argued that global prosperity hinges on balanced trade, where nations focus on their strengths. The United States should trade freely with the world, Buffett said, warning that tariffs could spark economic turmoil. His comments come as Trump tariffs, including a 10% blanket levy on imports and up to 145% on Chinese goods, have rattled markets.
Tariffs as an Act of War?
Buffett went further, suggesting that tariffs could be akin to an act of war in extreme cases. Without naming Trump directly, he criticized the use of trade as a political tool, which he believes destabilizes international relations. The S&P 500 recent dip into bear market territory, down nearly 20% in April, underscores the market volatility tied to these policies. Yet Buffett downplayed the turbulence, calling it nothing compared to past market swings he has weathered.
Record Cash Pile Sparks Curiosity
Berkshire Hathaway reported a staggering $347.7 billion cash reserve, up from $334.2 billion at the end of 2024. Shareholders pressed Buffett on how the conglomerate plans to deploy this capital. He admitted that attractive investment opportunities are scarce but hinted at big moves ahead. We came close to spending $10 billion recently, Buffett revealed, but opportunities do not come on a schedule. He remains confident that Berkshire will find ways to capitalize on its cash when the time is right.
Why So Cautious?
The cash hoard reflects Buffett caution amid high market valuations and economic uncertainty. Berkshire has been a net seller of stocks for ten straight quarters and has not repurchased its own shares for three quarters. A 14% drop in operating profit, driven by insurance losses from California wildfires, also signals challenges. Still, Buffett optimism shone through, as he dismissed fears about Berkshire financial health and urged investors to stay patient.
A New Chapter for Berkshire
In a bombshell announcement, Buffett revealed he will step down as CEO by the end of 2025, ending a 60-year tenure that transformed Berkshire into a $1.16 trillion conglomerate. He endorsed Greg Abel, long seen as his successor, to take the helm. Abel, who already oversees non-insurance operations, joined Buffett on stage, signaling a smooth transition. Buffett expressed confidence in Abel ability to lead, noting that the company is in great hands.
Shareholder Sentiment and Succession
The news of Buffett retirement sent ripples through the crowd of nearly 20,000 attendees. Many, like Wang Yu from Guangzhou, China, who lined up at 11 p.m. to secure a seat, see Buffett as irreplaceable. Yet Abel presence reassured investors, with some praising his operational expertise. The meeting also highlighted Berkshire enduring appeal, with its defensive insurance empire and unmatched balance sheet drawing investors seeking stability amid tariff-induced market swings.
Buffett Optimism for America
Despite concerns about tariffs and economic policy, Buffett remained bullish on the United States. If I were being born today, I would want to be in the U.S., he quipped, drawing applause. He urged shareholders not to be discouraged by political noise or market dips, emphasizing that America long-term prospects remain bright. His message resonated with attendees, who see Buffett as a steady voice in uncertain times.
The 2025 Berkshire Hathaway meeting was a blend of caution, critique, and confidence. Buffett sharp rebuke of tariffs, coupled with his retirement announcement, made headlines, but his enduring optimism left the biggest mark. As Berkshire prepares for a new era under Abel, investors left Omaha with plenty to ponder about trade, markets, and the future of one of America most iconic companies.
