Buffett critical about Trade Policies in his last AGM appearance as Berkshire Hathaway's CEO
In his concluding appearance as Chief Executive Officer at Berkshire Hathaway's 60th annual shareholder meeting on Saturday, May 3rd. On his departing speech Buffett expressed caution regarding the long-term stability of the US dollar and offered critical views on current protectionist trade policies. The meeting also marked the official transition of CEO responsibilities to Vice Chairman Greg Abel.
Concerns Over US Dollar and Currency Strategy
Mr. Buffett indicated potential circumstances under which Berkshire Hathaway might increase its holdings in foreign currencies. "Obviously we wouldn't want to be owning anything that we thought was in a currency that was really going to hell," he stated, adding, "...there might be a situation where we would do a lot of financing in their currency," particularly if a major investment were made in Europe. This suggests a potential future diversification influenced by US economic conditions or policies. His comments arise amidst growing concerns about the US fiscal deficit.
Critique of Trade Policies
Without explicitly naming the administration, Mr. Buffett voiced strong disapproval of using trade tariffs as a geopolitical tool. "Trade should not be a weapon," he asserted, warning that such measures "can be an act of war" and have historically "led to bad things." His remarks followed recent implementations of significant tariffs between the US and China. He stressed the importance of maintaining positive relationships with global partners, stating it is unwise for the US to antagonise allies when global cooperation is essential, especially in a world facing nuclear risks.
Outlook and Succession
Despite these concerns, Mr. Buffett reaffirmed his fundamental optimism about the American economy, calling the US the "best place in the world." He emphasised that global prosperity benefits the United States and enhances global security. As Greg Abel formally assumes the CEO role, Mr. Buffett's parting remarks underscore a blend of continued faith in American enterprise alongside caution regarding fiscal policy and international trade relations.
