Warren Buffett, in his final appearance as chief executive officer of Berkshire Hathaway, issued a cautionary note about the long-term prospects of the US dollar, warning that the currency could face instability amid growing fiscal and geopolitical challenges.
Speaking at the company’s 60th annual shareholder meeting on Saturday, Buffett formally passed the leadership baton to Vice Chairman Greg Abel, who will now assume day-to-day control of the conglomerate. The meeting, a landmark in the history of the $860 billion investment firm, was attended by thousands of shareholders who gathered in Omaha to witness the billionaire investor's farewell as CEO.
Buffett signalled that Berkshire could expand its use of foreign currencies in financing, particularly if the firm were to pursue large-scale investments in Europe.
“I suppose if we made some very large investment [in a] European country… there might be a situation where we would do a lot of financing in their currency,” Buffett said, hinting at a shift away from exclusive reliance on the US dollar. “Obviously we wouldn’t want to be owning anything that we thought was in a currency that was really going to hell,” he remarked, drawing attention to the potential erosion of dollar value.
His comments came amid rising concerns over the ballooning US fiscal deficit and a heightened regulatory environment. Despite his warning, Buffett maintained a characteristically optimistic outlook on the American economy. “This is the best place in the world to be,” he said, affirming that the US continues to offer compelling investment opportunities.
Critique of protectionist trade policies
While refraining from mentioning former President Donald Trump by name, Buffett was sharply critical of the aggressive use of tariffs and trade restrictions in recent years, warning that such measures could strain diplomatic ties and spark economic retaliation.
“Trade should not be a weapon,” he said, referring to sweeping tariffs imposed on Chinese goods. “Trade and tariffs can be an act of war. I think it’s led to bad things—just the attitudes it’s brought out.”
Buffett’s remarks follow the Trump administration’s imposition of duties of up to 145 per cent on Chinese imports, a move that drew a retaliatory response from Beijing with tariffs of up to 125 per cent. Although the US later delayed most of the new tariffs for 90 days, China remained a notable exception, intensifying tensions between the two largest economies.
Calling for a more collaborative global approach, Buffett said the US must be cautious in alienating its allies. “It’s a big mistake, in my view, when you have seven and a half billion people that don’t like you very well, and you got 300 million that are crowing in some way about how well they’ve done—I don’t think it’s right, and I don’t think it’s wise,” he said.
Buffett further noted the risks of escalating global division, especially in a world armed with nuclear weapons. “We want a prosperous world,” he said. “In a country with nuclear weapons, and some of them unstable, I don’t think it’s a great idea for some countries to say ‘we won’ and others feeling envious.”
Investment outlook and strategy
Turning to investment themes, Buffett reiterated his long-standing belief in the resilience of the stock market over the long term, describing equities as a more favourable asset class compared to real estate.
“When real estate gets in trouble, you deal with more than a few people,” he said, suggesting that property investments often come with logistical and operational hurdles. He emphasised that active investing, requiring careful judgment and market awareness, remains vital in navigating an increasingly unpredictable global economy.
Despite his gradual withdrawal from operational duties, Buffett assured shareholders that Berkshire Hathaway remains in capable hands under Greg Abel. With more than two decades at the firm and a track record in managing its energy and infrastructure businesses, Abel is widely regarded as a steady successor who will uphold Buffett’s investment principles.
In his closing remarks, Buffett struck a hopeful note: “The more prosperous the rest of the world becomes, it won’t be at our expense. The more prosperous we’ll become, and the safer we’ll feel—and your children will feel someday.”
