Warren Buffett, the CEO of Berkshire Hathaway, took a stance against President Trump’s use of tariffs to harm global commerce. At Berkshire’s annual shareholder meeting, Buffett emphasized that trade should not be a weapon and that it is neither right nor wise. His comments were eagerly awaited by Berkshire’s shareholders, who were interested in hearing directly from the investor on Trump’s trade policies. Buffett’s remarks were particularly notable as he acknowledged a previous proposal to address trade imbalances, but defended the broader concept of global trade flows. Despite fears about the consequences of tariffs, Buffett expressed little worry about their effects on Berkshire. The company reported a sharp drop in first-quarter earnings, with operating income down 14% from the same time a year ago. Despite the volatility in the market, Buffett suggested that riding out market vicissitudes was part of stock investing. Berkshire warned that Trump’s trade policies were generating considerable uncertainty, which could affect the company’s operating results. The company reported that a majority of its businesses had lower sales and earnings in the first three months of the year, particularly in insurance underwriting income, which was hit by losses tied to the California wildfires. Despite the challenges, Berkshire’s cash hoard continued to grow, reaching a record of $347.7 billion. Buffett acknowledged stocking up on cash to prepare for any potential buying opportunity, but refused to elaborate on a potential $10 billion investment. Berkshire is often regarded as a bellwether for corporate America, given its wide array of businesses, including BNSF, a powerful insurance operation, and many consumer brands. The annual meeting was attended by prominent corporate and business leaders, including Microsoft co-founder Bill Gates, Apple CEO Tim Cook, and billionaire financier William Ackman. Two first-timers, Hillary Clinton and Priscilla Chan, the wife of Meta’s CEO Mark Zuckerberg, were also present.
Reference : https://www.nytimes.com/2025/05/03/business/berkshire-earnings-warren-buffett.html
