Warren Buffett's Crystal Ball: Did the US dollar go bankrupt when global currency transfers?
Looking for stability abroad
Buffett made it clear that Berkshire is willing to transfer more investment to foreign currencies. For example, the yen has seen an increase in exposure in Berkshire's portfolio. He noted that if the company made substantial investments in European countries, they could “finance heavily in currency.”
“What happens in the United States can happen … makes us want to have many other currencies,” he added.
This sentiment is because Berkshire's cash reserves hit a record $347 billion. In 2024 alone, the company sold $134 billion in shares, including its major stakes in Apple and Bank of America. It reflects defensive strategies in the uncertainty of the global economic.
Leadership Transition
The meeting also marked a milestone in leadership. Buffett, 94, officially handed over the CEO position to Vice Chairman Greg Abel. Despite his resignation, Buffett's influence remains obvious.
Trade and tariffs
Most of Buffett's speeches targeted the US's approach to global trade. He did not name Donald Trump, who slammed protectionist policies and high tariffs.
“Trade shouldn't be a weapon… There is no doubt that trade could be a war. I think that leads to bad things, just look at the attitudes that the United States causes in the United States.”
Buffett is referring to comprehensive import tariffs – U.S. tariffs on Chinese goods are as high as 145%. China responded with a 125% tariff. Although some increase has been suspended, China remains the target and keeps tensions high.
“It seems to me that when you have seven billion people who don't like you very much, it's a big mistake, and you have $300 million in some way squeezed in their performance, I think it's wrong, and I think it's wrong,” Buffett said.
Call for global prosperity
Investment legends warn of any triumphalism in a world with nuclear weapons. “We want a prosperous world,” he stressed. “There are eight countries with nuclear weapons, including some very unstable countries, and I think designing a world in the world is not a good idea to say, and we've won.”
He added that global prosperity benefits. “I do think the more prosperous the rest of the world becomes, it won’t come at our expense – the more prosperous we become, the safer we feel.”
Despite Buffett's rapid criticism of U.S. policy, he continues to support the strength of the U.S. economy. “This is the best place in the world [we] See opportunities to invest,” he said.
He celebrated the country’s capitalism history: “Capitalism in the United States has succeeded.” But he also acknowledged its limitations: “We are not trying to solve business that cannot be solved.”
And he didn't waste the government, saying, “It's easier to do stupid things with other people's money than with your own money. This is one of the problems the government generally encounters. We don't want to bring it to private businesses.”
Regarding the market topic, Buffett is still cautious but optimistic. Stocks have historically surpassed other assets, he said, but pointed out that real estate has its own risks. He warned: “When real estate is in trouble, you deal with multiple people.”
He reminded investors that uncertainty is not new. “We’ve been through a good recession, we’ve been through World War II, we’ve been through the development of an atomic bomb that I never dreamed of when I was born, so I won’t be discouraged because it doesn’t seem to solve all the problems we’ve solved.”
