On May 3, Eastern Time, during the 2025 annual meeting of Berkshire Hathaway Inc. Class A(BRK.A.US) Berkshire Hathaway Inc. Class B(BRK.B.US) , Chairman Warren Buffett made a rare show of dissatisfaction with current U.S. trade policies. He sharply pointed out that the misuse of tariff tools would trigger far - reaching negative consequences and firmly reaffirmed the vital significance of free trade for global prosperity.

Buffett on U.S. Tariffs

Buffett stated at the meeting, “Trade shouldn't be wielded as a weapon. The United States has accomplished remarkable feats. A mere 250 years ago, we had next to nothing, yet now we've risen to become one of the world's most influential nations. It's truly an unprecedented achievement.” He further stressed that imposing punitive tariffs was a grave error. “When you're up against 7.5 billion people who aren't exactly friendly towards you, and you start getting cocky about the success of your 300 million - strong population, I'd say that's neither right nor smart.”

Lately, with the global trade environment in constant upheaval, the market has seen wild swings, leaving investors on edge. Buffett's remarks were regarded as a voice of reason in the chaos. “I firmly believe that the more prosperous the rest of the world becomes, the better off we'll be. It won't hurt us; instead, it'll boost our prosperity and make us and our children feel more secure,” he pointed out.

The 94 - year - old “Oracle of Omaha” has long been a champion of economic globalization and mutually beneficial trade. He firmly believes that free trade is the lifeblood driving economic growth and social stability. Policies that casually slap on tariffs not only gum up the efficiency of the global supply chain but also eat away at companies' long - term profit margins.

Buffett's concerns aren't unfounded. Berkshire Hathaway's freshly released first - quarter earnings report mentioned that tariffs and other geopolitical risks had introduced “substantial uncertainty” to the company. The report noted, “At present, we can't accurately predict how these factors will impact various aspects of our business, including product costs, supply chain efficiency, and customer demand.”

Looking at the first - quarter results, Berkshire's core operating profit took a hit, dropping about 14% year - on - year to $9.64 billion. Insurance underwriting profit plummeted nearly 50% to just $1.34 billion. The company attributed this in part to wildfires in California, which caused about $1.1 billion in losses during the quarter. On top of that, the weakening U.S. dollar led to around $713 million in foreign exchange losses.

Despite the lackluster earnings, Berkshire's cash reserves hit a new high. As of the end of March, the company held a staggering $347 billion in cash and equivalents, a clear sign of Buffett's defensive strategy in these uncertain times. In fact, the company has been a net seller for ten straight quarters. In 2024 alone, it offloaded over $134 billion worth of stocks, significantly reducing its holdings in Apple Inc.(AAPL.US)  and Bank of America Corporation(BAC.US) , two of its major investments.

Buffett admitted at the shareholders' meeting that the current market's uncertainty was a cause for concern, so the company decided to sit on its cash rather than jump in to try and catch the bottom. He reminded investors to exercise patience and not let short - term market gyrations throw them off. Berkshire has always been a proponent of long - term investment, focusing on finding companies with lasting competitive advantages, a principle that's even more crucial now.

Interestingly, even though the U.S. GDP contracted for the first time since 2022 in the first quarter, Berkshire's stock price defied the odds. Since the start of 2025, its Class A shares have soared nearly 19%, far outperforming the broader market, which shows that investors still have faith in Buffett's leadership.

When discussing the global economic outlook, Buffett said that promoting global prosperity was a long - haul mission and the key to economic stability. “I've always thought that a prosperous and stable world benefits all countries and brings greater security to future generations,” he emphasized. He also reassured investors that Berkshire would stay true to long - termism, not swayed by short - term market sentiment, and would keep investing in core businesses like insurance, railroads, and energy to ensure sustainable growth.

Buffett on Cash Reserves

Buffett let investors in on a secret: the company's record - high cash reserves were likely to be put to work within the next five years. Even though there weren't any appealing investment targets at the moment, he was confident that the right opportunities would come along. “The odds of us using this cash for investment tomorrow are slim, but within five years, it's very much on the table,” he said. With over $347 billion in cash and equivalents as of the end of the first quarter of 2025, the market was eager to see when this massive war chest would be deployed.

Buffett explained that investment opportunities were unpredictable and didn't follow a set schedule. “In the investment game, opportunities don't line up neatly for you,” he said. The company was on the hunt for assets that could generate long - term value, but quality investments were hard to come by, requiring plenty of patience. “As time passes, our chances of finding great opportunities will only get better,” he added.

Berkshire's investment philosophy has always been “patience is key” and “stick to your principles,” never rushing into investments for quick profits. In recent years, while making only a few investments, the company has mostly been in sell - mode. In 2024, its stock sales topped $134 billion, especially reducing its big bets on Apple and Bank of America. These moves showed that the company was playing it safe in an overheated market, waiting for the perfect entry points.

Some in the market questioned whether Berkshire was wasting its cash by not investing it, worried that it might impact returns. But Buffett wasn't fazed. “We'd rather hold off on making a profit than take risks with investments we don't fully understand or aren't confident in,” he firmly stated at the meeting. Analysts also speculated that the cash pile could be a safeguard against potential turbulence during the company's leadership transition. As KBW analyst Meyer Shields put it, “Buffett's amassed all this cash possibly to prepare for the management handover.”

Buffett on the U.S. Economy

At the 2025 shareholders' meeting, despite widespread concerns about the U.S. economy, Buffett reaffirmed his unwavering faith in the country. “No matter how many challenges we face, I firmly believe the U.S. has unique resilience and endless opportunities. That's why I'm all - in on America,” he declared.

He shared a nostalgic look back at U.S. history, “I've said before, the U.S. started as an agricultural society. We made big promises, but the execution wasn't always perfect. We've been evolving non - stop, and there's always something to criticize. But the luckiest day of my life was the day I was born here.”

With the global economy slowing down, geopolitical tensions rising, and so much uncertainty, many investors were anxious about the U.S.'s economic future. But Buffett took the long view, highlighting how the U.S. had overcome major crises in the past. “We've been through deep recessions, world wars, and witnessed the development of atomic bombs—things I never thought I'd see when I was born. So, I don't buy into the idea of getting discouraged by current problems,” he said.

Even though he'd criticized current trade policies at the meeting, he saw them as short - term blips that wouldn't shake his long - term confidence in the U.S. market. “Sure, we've got a lot of issues to solve, but that doesn't mean we've lost our momentum or opportunities,” he emphasized.

Buffett on the Japanese Market

Buffett once again made it crystal clear how confident he was in the Japanese market. “Even if the Bank of Japan hikes interest rates in the future, it won't make me budge. I'm holding onto these Japanese stocks,” he said, a statement that gave the market a much - needed confidence boost in the complex global financial landscape.

When asked if potential interest rate hikes would make him stop investing in Japan, he didn't mince words: “For the next 50 years, selling these stocks isn't even on our radar.” He praised the Japanese market's “outstanding” performance and pointed to the strong business results of companies like Apple, American Express Company(AXP.US) , and Coca-Cola Company(KO.US)  - Cola in Japan, proving that Japan, as the world's third - largest economy, still had plenty of consumer power and a stable market.

Buffett also talked about the great relationships he had with the Japanese companies he invested in. “They treat me really well, and this is a long - term partnership,” he said, emphasizing the high level of trust and professionalism in these collaborations. He noted the unique business culture and methods in Japan, saying, “They have their own ways of doing things, and that's what makes global business so interesting. We have no intention of changing them because they're clearly doing something right.”

Looking ahead, he reaffirmed, “We're not selling any of these stocks. Not in the next few decades, maybe never.” He saw the Japanese investments as a perfect fit for Berkshire's investment philosophy and a key part of its global diversification strategy. Vice Chairman Greg Abel chimed in, saying the company planned to hold these Japanese investments for at least 50 years, showing that Berkshire was in it for the long haul, aiming for steady, long - term returns.

Since 2020, Berkshire has been ramping up its investments in Japan, buying large stakes in several Japanese trading companies and steadily increasing its holdings. These moves have not only brought in good returns but also strengthened its position in the Asian market.

Berkshire's Insurance Chief Continues to Watch AI Opportunities

At the shareholders' meeting, Ajit Jain, the head of Berkshire's insurance business, weighed in on artificial intelligence (AI). He said AI had the potential to completely transform the insurance industry, from risk assessment and pricing to sales and claims settlement. “AI could be a real game - changer, shaking up the whole industry,” he predicted.

But Jain made it clear that Berkshire wouldn't jump on the AI bandwagon without careful consideration. “People often throw huge amounts of money at the next big thing, but that's not our style. We're not about being the first in line,” he said. The company preferred to take its time, waiting for the right moment and thoroughly assessing risks, returns, and the likelihood of failure before making any big moves.

While AI was already starting to be used in the insurance industry for things like better risk control and customer service, Jain thought it was still in its early days. “Right now, some of our insurance units are testing the waters with AI, seeing how we can make the most of it, but we're not going all - in just yet,” he revealed.

Even though Berkshire was taking a wait - and - see approach for now, Jain stressed that the company was ready to pounce when the right opportunity came along. “We're keeping our eyes peeled. As soon as we spot a good chance, we'll be there,” he said.

Jain's comments showed Berkshire's practical approach to new technologies. Unlike many companies rushing to invest in AI, Berkshire focused on managing risks and making long - term plans. As Buffett had said before, the company only invested in businesses it understood, and it would only go all - in on AI once it fully grasped how it would impact its core insurance business.

With AI rapidly evolving, the insurance industry faced big opportunities for digital transformation, but also challenges like data privacy, algorithmic bias, and regulatory risks. Jain's message to investors was clear: Berkshire recognized AI's potential but would stick to its “safety first” principle, carefully weighing all factors before making investment decisions. Whether AI would truly revolutionize the insurance industry and when Berkshire might jump in remained to be seen, but one thing was certain—Berkshire would be watching closely and ready to act when the time was right.

Berkshire Hathaway's First - Quarter Performance Under Pressure

Berkshire Hathaway released its first - quarter 2025 earnings report, showing how the company fared in a tough market environment. While overall earnings dipped due to investment swings and foreign exchange issues, its core businesses held strong, demonstrating the company's resilience and long - term strategy.

In the first quarter, Berkshire's total operating profit dropped about 14% year - on - year to $9.641 billion, down from $11.222 billion in the same period of 2024. Insurance underwriting profit took a hit, falling from $2.598 billion to $1.336 billion, mainly due to natural disasters. The company also suffered a $713 million foreign exchange loss, a stark contrast to the $597 million gain in the previous year, highlighting the impact of currency fluctuations.

On the bright side, insurance investment income increased from $2.598 billion to $2.893 billion, helping to offset some of the underwriting losses. Berkshire's energy business saw profits rise from $717 million to $1.097 billion, showing strong growth. The BNSF railway business also did well, with profits climbing from $1.14 billion to $1.214 billion.

In manufacturing, services, and retail, profits remained steady at around $3.06 billion, similar to the previous year's $3.088 billion, reflecting stability in these sectors. However, the “other” category saw a big drop in profits, from $1.078 billion to just $41 million, mainly due to foreign exchange losses. But this category also included $869 million in interest and dividends from U.S. Treasuries and other investments, up from $303 million last year, indicating a shift in the company's low - risk asset allocation strategy.

The report also reminded investors that according to GAAP, the company had to include unrealized gains and losses from equity investments in its investment income. This led to a $7.4 billion investment loss in the quarter, compared to a $9.7 billion loss the previous year. Berkshire emphasized that these quarterly fluctuations were normal and often didn't accurately reflect the company's true operating performance, urging investors to focus on core operating data instead.

By the end of March 2025, Berkshire's insurance float reached $173 billion, $2 billion more than at the end of 2024, providing a steady stream of low - cost funds for its investments. And with its cash reserves at an all - time high, the company was well - positioned to take advantage of future investment opportunities. Despite the challenges in the first quarter, Berkshire's solid fundamentals in key businesses and its ample financial resources ensured it was ready to weather market storms and stay on track for long - term success.