Highlights from the 2025 Berkshire Hathaway Shareholders Meeting

Key Points

1. Trade should not be used as a weapon; the United States should seek to trade with other countries and do what each does best. Protectionist policies are a serious mistake.

2. Fiscal policy is the issue Buffett worries about the most in the United States, as irresponsible government actions may lead to frightening currency values.

3. Berkshire's current investment in Japan has reached $20 billion, and Buffett even wishes that he had invested $100 billion instead of $20 billion. He plans to continue holding shares in Japanese trading companies for fifty or sixty years.

4. Recently, the US stock market has not experienced any significant fluctuations; compared to past crashes, it cannot be considered a severe bear market, nor is it a similar situation.

5. There may be investment opportunities in the next five years. Recently, Berkshire was close to making a $10 billion investment.

6. Abel, the head of Berkshire's non-insurance business, is expected to take over as CEO by the end of the year. He will not sell any of his Berkshire shares and will gradually donate them.

7. If one day Berkshire's stock price drops by half, it would instead be an opportunity for Buffett. Overall, Berkshire's profitability will continue to grow over a period of time.

8. The balance sheet is a good starting point for assessing whether a company is worth investing in. Buffett spends more time studying balance sheets than looking at income statements.

9. Buffett suggests that for young people, the fastest path to success is to find truly exceptional individuals and walk alongside them.

Detailed Content

Trade

Buffett criticized tariffs and trade protectionism, stating that trade should not be used as a weapon. He pointed out that the United States should seek trade with other countries in the world, doing what each does best. The more trade, the better. Buffett believes that protectionist policies could have negative effects on the U.S. in the long term, especially after the U.S. has become the world's leading industrial country.

Japan Investment

Buffett stated that the investment in Japan fully aligns with Berkshire's investment philosophy. The five Japanese trading companies that Berkshire has invested in have performed exceptionally well in the past, and he plans to continue holding these companies' stocks for fifty to sixty years, hoping to establish a long-term and profound cooperative relationship with them. Buffett mentioned that Berkshire's current investment in Japan has reached $20 billion, and he even wishes that the initial investment was $100 billion instead of $20 billion.

Cash Reserves and Investment Opportunities

Buffett holds a cautious attitude towards the current investment opportunities. He stated that he has been looking for investment opportunities and that Berkshire is quite opportunistic in nature; he hopes to reduce the cash on hand, possibly down to $50 billion. Buffett revealed that Berkshire almost spent $10 billion on an investment recently.

The Impact of AI on the Insurance Industry

Berkshire's insurance business leader, Jain, stated that AI will be a tool used to change the rules of the industry. AI technology could truly alter the way the insurance industry currently assesses, prices, and sells risk, as well as the current claims process. However, Berkshire will not be the first to adopt AI in the industry and has taken a more cautious approach to any high-profile new technology claims.

US fiscal policy

Buffett stated that fiscal policy is his biggest concern in the United States because the way it is formulated and all the motivations behind it tend to lead to many potentially troublesome financial issues. When the government takes irresponsible actions, the value of money can become frightening. Buffett warned that the current fiscal deficit situation in the U.S. is difficult to sustain for a long time.

Capitalism and the American Economy

Buffett called the United States a shining example of capitalism and compared this system to a cathedral accompanied by a casino. He emphasized that in the next 100 years, America must ensure that this cathedral is not consumed by the casino. Buffett believes that capitalism appears to be very random and capricious in terms of distributing returns.

Berkshire's successor

Buffett announced that Greg Abel should become the CEO of Berkshire by the end of the year. Buffett stated that after stepping down, he would still remain at Berkshire and provide assistance, but the final decision-making power would be in Abel's hands. Buffett mentioned that he has no intention of selling any Berkshire stock, but will gradually donate his shares.

Investment Advice

Buffett advises young investors to maintain curiosity and read more. He emphasizes that the real challenge is not just investing, but how to do the right things with Berkshire's resources. Buffett believes that the fastest path to success is to find truly outstanding people and walk alongside them.