Warren Buffett Retires, Criticizes Tariff Policies, and Expresses Confidence in Japanese Trading Houses

This article is for reference only and does not constitute any investment advice. Investing involves risk. Please seek independent advice before making any investment decisions.

On May 3, 94-year-old investment legend Warren Buffett announced at the Berkshire Hathaway annual shareholders' meeting that he will step down as CEO by the end of this year. He recommended Vice Chairman Greg Abel as his successor.

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Policy Warning: Trade Should Not Be Used as a Weapon

Regarding the recent spotlight on tariff issues, Buffett responded with direct criticism.

Criticism of Tariff Policy

Trade should not be used as a weapon. We should seek to trade with the rest of the world. We should do what we do best, and they should do what they do best.

Emphasizing Mutual Prosperity

If other countries around the world prosper, it’s not at the expense of our interests. We will prosper more as well—and we’ll be safer. Your children will feel that too.

A Warning Against Alienating the World

If 7.5 billion people dislike you, and only 300 million people are boasting about their achievements, that’s a serious mistake.

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Bullish on Japan: No Plans to Sell Japanese Stocks for the Next 50 Years

When asked whether Berkshire Hathaway would stop investing in Japanese stocks after a potential rate hike by the Bank of Japan.

Buffett made his position clear

Berkshire’s investments in Japan align with its long-term philosophy. The five Japanese trading houses have performed exceptionally well, and Berkshire plans to hold these stocks for 50 to 60 years, aiming to build long-term and meaningful partnerships with these firms.

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Concerns About the Dollar: Depreciation Risks Are Worrying

Buffett also voiced strong concerns about the depreciation of the U.S. dollar, warning that continued devaluation would undermine its global value, especially under irresponsible government policies.

He clearly stated

We will not invest in currencies that are significantly depreciating.

While the dollar remains the world's primary reserve currency, Buffett believes U.S. government policies are eroding its value. In the past, everyone wanted to hold large amounts of U.S. dollars. That’s no longer the case.

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Diversification: Expanding Abroad to Mitigate Risk

Discussions during the shareholder meeting highlighted Buffett’s concern over the potential risks posed by the Trump administration’s tariff policies. To cope with such uncertainties, companies can follow Buffett’s lead by expanding into markets like Japan. International expansion helps mitigate the effects of global economic cycles through risk diversification. Operating across borders reduces dependence on a single market and allows for more efficient resource allocation and steadier growth.

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Conclusion

Buffett’s remarks reflected his deep insight into the global economic landscape and U.S. policies, offering valuable guidance for businesses and investors alike. In a rapidly changing international environment, flexibility and long-term vision are key to navigating complex economic conditions with steady progress.

If you're planning to expand your business overseas or set up a company in Hong Kong, feel free to contact our consulting team.