Tariffs, cash pile, Japan, AI, currency, DOGE: Top 10 takeaways from Warren Buffett’s latest address at Berkshire Hathaway meet

Warren Buffett cautioned against the use of tariffs, calling them “a big mistake” and warning that trade should not become a weapon. In response to a widely submitted question, Buffett drew a clear distinction between tariffs and a little-known idea he floated in 2003: import certificates.

“The trade should not be a weapon,” Buffett said. “The United States, we’ve won. I mean, we have become an incredibly important country, starting from nothing… and it’s a big mistake, in my view, when you have seven and a half billion people that don’t think it’s right, and they don’t think it’s wise.”

Buffett reiterated his support for global commerce: “We should be looking to trade with the rest of the world, and we should do what we do best, and they should do what they do best.”

$335 billion in cash, waiting for ‘fat pitches’

Buffett defended Berkshire Hathaway Inc.’s historically high cash pile, saying the firm is staying “very, very, very opportunistic” and won’t force capital deployment just to appear fully invested.

The company now holds more than $300 billion in cash and short-term investments—about 27% of total assets—compared to a 25-year average of 13%, a shareholder noted in a question.

“I wouldn’t do anything nearly so noble as to withhold investing myself just so that Greg (Abel) couldn’t look good later on,” Buffett said. “Now, if he gets any edge when I leave, I’ll resent it.”

Buffett said Berkshire came close to deploying $10 billion recently, and wouldn't hesitate to spend “$100 billion” when the right opportunity came along. “Those decisions are not tough to make. When something is offered that makes sense to us and that we understand, and offers good value and where we don’t worry about losing,” he said.

50-year hold on Japan stakes

Buffett said he plans to hold on to his investments in Japan’s five major trading houses—Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo—for the long haul, possibly another 50 years.

“I’d say I can speak for Greg as well, even beyond my time, over the next 50 years. And I hope he’s the one running things. I don’t even think about selling those,” Buffett said.

Abel, who will take over as the chief executive by the year-end, echoed the same sentiment. “As Warren mentioned, our plan is to hold these investments for 50 years or even forever. But more than that, we’re also working on building partnerships with each of these companies. We really hope to do bigger things together,” Abel said.

“The value of currency is a scary thing”

Buffett cautioned shareholders that the natural course of governments is “to make the currency worthless over time,” underscoring his long-standing concerns about fiscal policy and currency debasement.

“The value of currency is a scary thing,” said Buffett.

While acknowledging the U.S. dollar's weakening against foreign currencies in 2025, Buffett said Berkshire isn’t taking any new steps to hedge the impact on earnings. “We do nothing in terms of the question about its impact on quarterly and annual earnings,” he said. “There’s never been a board meeting I can remember... where I say, if we do this, our annual earnings will be this.”

Buffett emphasized that Berkshire avoids focusing on short-term metrics. “If you start focusing on what number you’re going to produce, you will quickly get tempted... to play around with the numbers, and sometimes seriously play around with the numbers,” he said. “That’s just not something we think about.”

DOGE

“I think that bureaucracy is dangerously contagious, and it really doesn’t have any checks on i,t and that is why it scares you about what the future of the currency will be. I think the problem of how you control revenue and expenses in the government is never solved,” said Buffett.

“We are operating at a fiscal deficit now that is unsustainable,” he added.

“We are doing something because it is unsustainable. Paul Volcker kept that from happening that in the United States. We still have substantial inflation in the United States. I wouldn’t want the job of trying to correct what is going on. We have a 7% fiscal gap, when a 3% gap is what is sustainable,” explained Buffett.

American tailwind

Buffett pushed back against growing pessimism over the U.S. economy, reaffirming his long-standing belief in what he famously calls the “American tailwind.” Speaking at Berkshire Hathaway’s annual shareholder meeting on Saturday, Buffett said while the country is always undergoing change, some of it uncomfortable, the broader trajectory remains a powerful force for progress.

“We started out as an agricultural society. We started out as a society with high promises, and we didn’t deliver on it very well,” Buffett said in response to a question about whether the U.S. is undergoing revolutionary change that might require investors to rethink their assumptions.

He pointed to contradictions in the country’s founding ideals.

“We said all men were created equal. Then we wrote a Constitution that said we get three-fifths,” he said, referring to the clause that treated enslaved individuals as three-fifths of a person for representation purposes. “You’ll find male pronouns used 20 times and no female pronouns used.”

AI vs Ajit Jain

When it comes to choosing between AI and Berkshire Hathaway veteran Ajit Jain, Buffett is clear where he stands - Ajit Jain.

Answering a query  on the role of AI as a part of the Berkshire Hathaway Annual General Meeting, Buffett said, “I wouldn't trade everything that's developed in AI in the next 10 years for Ajit.”  He added, that if one gave him a choice of having $100 billion participate in the insurance, property, cash, and insurance business for the next 10 years, and a choice of getting the top AI product out of whoever is developing it, or having a chief making the decision, he would take Ajit at any time.

Jain, Berkshire Hathaway’s Vice Chairman of Insurance Operations, acknowledged the transformative potential of AI in the industry but urged the need for caution over hype.

“There is no question in my mind that AI is going to be a real game-changer,” Jain said. “And it's going to change the way we assess risk, we price risk, we sell the risk, and then the way we end up paying claims.”

But unlike many competitors pouring capital into AI initiatives, Jain made it clear that Berkshire is taking a more measured approach.

Greg Abel to be the chief executive by year-end

The halls of CHI Health Center in Omaha, Nebraska, erupted in cheers and a standing ovation as Buffett announced that he would be formally be suggesting to the Berkshire Hathaway board to formalising Greg Abel as the new CEO of Berkshire Hathaway by the end of the year.

"I think it's the time has arrived where Greg should become the chief executive officer of the company at year's end. And I want to spring that on the directors, effectively, and give that as my recommendation," he said.

“I want to give them ( the board) time to think about it — to ask questions, consider the structure, and reflect on what it means,” Buffett added.

Real estate vs stocks

Buffett believes that it is much harder to deal in real estate than stocks, as the deal negotiation takes a much longer time with multiple parties involved. He further believes that there are many more opportunities in stocks in the US compared to real estate.

“Well, in respect to real estate, it's so much harder… in terms of negotiation of deals, time spent. The involvement of multiple parties in the ownership, usually when real estate gets in trouble, you find out you're dealing with more than the equity holder,” said Buffett at the annual shareholders' meeting in Omaha.

“There have been times when large amounts of real estate have changed hands at bargain prices, but usually stocks were cheaper, they were a lot easier to do,” he added.

“There's just so much more opportunity, at least in the United States, there's so much more opportunity that presents itself in the security market than does in real estate,” said Buffett.

Patience an important principle of investing

There are times when one has to act fast to make money, but one needs to be patient at times when looking for the right opportunities, said Buffett.

“There are times when you'll have to act fast. In fact, we made a great deal of money because we're willing to act faster than anybody around,” said Buffett.

“It's a combination of patience and willingness to do something… if it comes to you… You don't want to be patient about acting on deals that make sense. And, you don't want to be very patient with people they're talking to you about things that will never happen,” he said.

Buffett further said the team at Berkshire Hathaway, including Ajit Jain and Greg Abel, is all very patient while evaluating opportunities, but highlighted that patience should not be underestimated.