Warren Buffett Announces Retirement, Warns of Tariff Risks, AI Impact

Warren Buffett, the legendary investor often referred to as the "Oracle of Omaha," held his final annual shareholder meeting for Berkshire Hathaway Inc. in Omaha, Nebraska. This year's gathering, his 60th and largest to date, marked a significant milestone as Buffett announced his retirement at the end of the year. The event, often dubbed the "investment world's Super Bowl," featured a marathon Q&A session where Buffett shared his insights on a range of topics, including tariffs, fiscal policy, and artificial intelligence.

Buffett reiterated his stance on tariffs, stating that trade should not be used as a weapon. He criticized the U.S. government's broad imposition of tariffs, arguing that it disrupts global trade balances and ultimately harms the U.S. economy. "Trade should not be a weapon," Buffett asserted, warning that protectionist policies could have long-term negative consequences for the United States. He emphasized the importance of global prosperity, noting that the success of other regions does not come at the expense of the U.S.

Buffett also expressed concern over the U.S. fiscal policy, describing it as unsustainable. He warned that the current trajectory of government spending and debt accumulation is not viable in the long run. While he did not delve into specific details of the new administration's cost-cutting plans, he acknowledged that reducing the deficit would be a challenging but necessary task. Regarding the risk of dollar depreciation, Buffett noted that the U.S. government's actions seem to be weakening the dollar rather than protecting it. He indicated that Berkshire Hathaway is shifting its focus to other assets to mitigate currency risks.

On the topic of artificial intelligence, Buffett acknowledged the potential for AI to revolutionize various industries. He mentioned that while Berkshire Hathaway has not made significant investments in AI, the company is closely monitoring developments in the field. Ajit Jain, Berkshire Hathaway's vice chairman and head of the insurance business, highlighted the potential for AI to transform business assessments, pricing, and risk management. He noted that the advent of autonomous vehicles could significantly alter the auto insurance landscape, reducing demand for traditional policies and increasing the need for product liability insurance.

Buffett also addressed his succession plan, announcing that Greg Abel, the vice chairman of Berkshire Hathaway, will take over as CEO at the end of the year. Abel, who joined the company in 1992 and has been on the board since 2018, is widely respected within the organization. Buffett expressed confidence in Abel's leadership, stating that the board of directors will unanimously support his appointment. Abel, in turn, expressed his honor and excitement at the opportunity to lead Berkshire Hathaway into the future.