Warren Buffett recently surprised shareholders of Berkshire Hathaway during the annual meeting by announcing his plan to step down as president and CEO by the end of 2025. Greg Abel is set to take over both roles, while Buffett will transition to the chairman position. Although anticipated due to Buffett’s age of 94, the timing of this announcement on May 3 seemed unexpected, particularly as Berkshire’s stock performance currently surpasses the general market. Despite this change, Buffett’s tenure is concluding on a high note.
As this was Buffett’s last meeting as CEO, investors closely monitored his remarks on market trends and global issues, subjects he has been cautious about in recent years. Without specifically mentioning former President Donald Trump, Buffett addressed a question about administrative policies, using the opportunity to criticize the use of tariffs and their economic impacts.
In the early 2000s, Buffett was vocal about the trade deficit, a concern echoed by Trump as justification for imposing tariffs. In a 2003 Fortune article, Buffett proposed a system where U.S. exporters would need import certificates, allowing them to import a set amount of goods. These certificates could be traded or sold. Buffett suggested this to balance imports and exports and prevent growing trade deficits, which he warned could lead to increased national debt.
Though his concept was not implemented, Buffett acknowledged it might not have been his best idea. His late friend, Charlie Munger, regarded it as excessive and "gimmicky." Buffett commented that despite not being perfect, his proposal was more favorable than current discussions on the topic.
A false claim emerged that Buffett supported Trump’s tariffs due to his earlier op-ed. However, Berkshire Hathaway refuted these allegations, asserting they were untrue.
Buffett largely avoids political discourse but expressed his belief that using trade as a weapon is a mistake. He advocates for focusing on strengths in trade with other nations. Buffett emphasized the importance of international cooperation and cautioned against attitudes of superiority, suggesting that global prosperity benefits the U.S. and enhances safety.
Buffett’s public statements against tariffs and the subsequent response from Berkshire highlight his stance on trade policy, offering investors insight into his views.
