By Jonathan Stempel and Suzanne McGee
OMAHA, Nebraska (Reuters) -Before announcing his plan to step down as Berkshire Hathaway chief executive at the end of the year, Warren Buffett offered a fervent defense of trade on Saturday, saying tariffs should not be a “weapon” and the United States would be better off if other countries shared its prosperity.
Buffett spoke at Saturday’s annual meeting of his conglomerate Berkshire Hathaway, after a month when U.S. President Donald Trump’s tariff policies prompted big stock price declines and increased fears of recession.
“Balanced trade is good for the world,” and “trade should not be a weapon,” said Buffett, 94, who has run Berkshire for 60 years and is arguably the world’s most revered investor.
“I don’t think it’s a good idea to design a world where a few countries say, ha ha ha, we’ve won,” Buffett added. “I do think that the more prosperous the rest of the world becomes … the more prosperous we’ll become.”
Berkshire itself has remained cautious toward markets, as its cash stake swelled in the first quarter to a record $347.7 billion.
At the meeting, Buffett fielded more than four hours of shareholder questions, with help from Berkshire’s vice chairmen Greg Abel – who is expected to replace Buffett as chief executive – and Ajit Jain.
Buffett parried a question about the Department of Government Efficiency, Elon Musk’s cost-cutting initiative, while warning that federal budget deficits are “unsustainable” and the U.S. government must get its fiscal house in order.
“It’s a job that I don’t want, but a job that should be done, and Congress does not seem to be doing it,” Buffett said, prompting audience applause.
Buffett also urged patience to investors worried about the direction of the U.S. economy and the country itself, saying they should reconsider their approach to investing if sudden market declines left them unsettled.
He nonetheless maintained his trademark long-term optimism for the country, saying criticism of policies and the people who make them is par for the course.
“We’re always in the process of change,” he said. “If I were being born today, you know, I would just keep negotiating in the womb until (they) said you can be in the United States. We’re all pretty lucky.”
NET SELLER OF STOCKS, AGAIN
Berkshire reported its cash stake with its first-quarter results, where insurance losses from January’s wildfires in southern California contributed to a 14% decline in operating profit to $9.64 billion.