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Warren buffet: recent commentary about America, and currency, and change?

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Key Points

  • Warren Buffett recently expressed optimism about the U.S. economy but raised concerns about isolationism and trade policies.
  • He warned about the long-term stability of the U.S. dollar, suggesting potential diversification into other currencies.
  • Buffett highlighted economic changes, including selling stocks and preparing for macroeconomic turbulence, while announcing his retirement as CEO.

America

Warren Buffett has shown a strong belief in the American economy, calling it “the best place in the world to be” and noting opportunities for investment. However, he has criticized America’s isolationist stance, stating, “It’s not wise. We’ve won already. Why risk it?” He also warned about the dangers of a divided global order, especially with nuclear weapons, and emphasized that global prosperity benefits the U.S., saying, “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.” Additionally, he opposed tariffs, calling them “a big mistake” and “an act of war,” particularly in the context of recent U.S.-China trade tensions, such as the U.S. imposing 145% tariffs on Chinese goods and China retaliating with 125% levies.

Currency

Buffett has expressed significant concerns about the U.S. dollar’s future, describing Washington’s fiscal policies as “alarming” and suggesting government actions seem designed to weaken it. He stated, “We would not really invest in a currency that is going to ‘hell’,” indicating a loss of confidence in the dollar as a global currency. As a strategic move, Berkshire Hathaway has increased exposure to the Japanese yen and is considering diversifying into other currencies, especially if significant investments are made in countries like those in Europe. He mentioned, “There could be… things happen in the United States that… make us want to own a lot of other currencies.”

Change

Buffett has highlighted economic changes, noting Berkshire Hathaway sold stocks for 10 straight quarters, dumping $134 billion worth in 2024, including trimming holdings in Apple and Bank of America, with a current cash pile of $347 billion, bracing for macroeconomic turbulence. He also announced his retirement as CEO at the end of 2025, with Greg Abel set to take over, marking a significant leadership change. He expressed frustration with trade war uncertainty, which impacts business predictions, and criticized protectionist trade policies, urging against antagonizing allies.

Comprehensive Analysis of Warren Buffett’s Recent Commentary

This section provides a detailed examination of Warren Buffett’s recent statements on America, currency, and change, drawing from multiple sources to ensure a thorough understanding. His commentary, primarily from Berkshire Hathaway’s 60th annual shareholder meeting on May 3, 2025, reflects his views on economic and geopolitical landscapes, offering insights into his strategic decisions and concerns.

Commentary on America

Buffett’s optimism for the American economy remains strong, as evidenced by his statement, “This is the best place in the world to be and [we] see opportunities to invest” (India Today). He praised the U.S., noting, “The luckiest day in the world is the day I was born. I was born in the United States” (NPR), underscoring his belief in its economic potential. However, he has expressed concerns about America’s isolationist policies, stating, “It’s not wise. We’ve won already. Why risk it?” (Business Today). This reflects his view that isolationism could jeopardize global cooperation.

He also warned about the risks of a divided global order, particularly with nuclear weapons, saying, “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” (India Today). Buffett emphasized the benefits of open markets, noting, “I do think that 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” (NPR), framing global prosperity as a national security issue.

His opposition to tariffs is notable, with statements like “Trade should not be a weapon” and “Trade and tariffs can be an act of war” (India Today). This stance is contextualized by recent U.S.-China trade tensions, where the U.S. imposed 145% tariffs on Chinese goods, and China retaliated with 125% levies (India Today), with the White House pausing most tariff increases for 90 days, except for China (India Today). Buffett urged avoiding antagonizing allies, stating, “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” (India Today).

Commentary on Currency

Buffett’s concerns about the U.S. dollar are significant, with him describing Washington’s fiscal policies as “alarming” and suggesting government behavior seems designed to weaken the dollar (Business Today). He expressed a loss of confidence, stating, “It’s not wise,” and noted, “We would not really invest in a currency that is going to ‘hell’” (Business Today), highlighting the risks when governments act irresponsibly, calling a currency’s value “a scary thing.”

As a strategic response, Berkshire Hathaway has increased exposure to the Japanese yen, acknowledging the dollar’s global dominance but looking elsewhere due to concerns (Business Today). He also indicated potential diversification, stating, “There could be… things happen in the United States that… make us want to own a lot of other currencies” (India Today), and suggested that significant investments in a European country could prompt financing in foreign currencies, saying, “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” (India Today).

Commentary on Change

Buffett’s commentary on change includes significant strategic and personal shifts. Berkshire Hathaway has been selling stocks for 10 straight quarters, dumping $134 billion worth in 2024, including trimming its massive Apple and Bank of America holdings, with its cash pile now at $347 billion, a record high, signaling preparation for macroeconomic turbulence (Business Today). This reflects his cautious approach amid economic uncertainty.

He also announced his retirement as CEO at the end of 2025, with Vice Chairman Greg Abel set to take over, marking a significant leadership change at age 94 (NPR, India Today). This transition was discussed during the shareholder meeting, highlighting continuity in leadership.

Buffett expressed frustration with trade war uncertainty, noting it impacts business predictions, as analyst Cathy Seifert from CFRA Research pointed out (NPR). He criticized protectionist trade policies, stating, “Trade should not be a weapon,” and “I think it’s led to bad things. Just the attitudes it’s brought out” (India Today), reinforcing his view on the negative impacts of tariffs.

Summary Table of Key Themes

To organize the detailed insights, the following table summarizes Buffett’s commentary:

ThemeKey Points
AmericaOptimistic about U.S. economy; criticizes isolationism and tariffs; emphasizes global prosperity.
CurrencyConcerns about U.S. dollar stability; increased yen exposure; potential diversification.
ChangeStock sales and cash buildup; CEO retirement; frustration with trade war uncertainty.

This analysis draws from multiple sources, ensuring a comprehensive view of Buffett’s recent commentary as of May 5, 2025, reflecting his strategic and philosophical stance on economic and geopolitical issues.

Key Citations

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