Warren Buffett Steps Down with Warning: US Dollar Headed ‘To Hell’ If Fiscal Trends Continue
Warren Buffett, the 94-year-old legendary investor and longtime CEO of Berkshire Hathaway, officially handed over the reins to Vice Chairman Greg Abel at the company’s 60th annual shareholder meeting in Omaha on Saturday. In what may be his final appearance as CEO at this iconic event, Buffett not only marked a historic leadership transition but also issued a stark warning about the long-term viability of the U.S. dollar.
Buffett, one of the most respected voices in global finance, cautioned shareholders about the growing fiscal risks facing the United States. “Obviously we wouldn’t want to be owning anything that we thought was in a currency that was really going to hell,” he said, referring to the U.S. dollar. “There could be… things happen in the United States that… make us want to own a lot of other currencies.”
He suggested that if Berkshire were to make a large investment in a European country, the company might consider financing deals in foreign currencies, rather than relying entirely on U.S. dollars. “I suppose if we made some very large investment [in a] European country… there might be a situation where we would do a lot of financing in their currency,” he noted.
Buffett’s comments come at a time when the U.S. faces mounting federal debt, political gridlock, and trade disputes that have roiled global markets. Though he reaffirmed his confidence in the U.S. economy, calling it “the best place in the world to be,” Buffett’s remarks also reflected a growing concern about America’s fiscal trajectory and its potential impact on global economic stability.
He specifically warned about the long-term consequences of ballooning deficits. “We are not taking it seriously enough,” Buffett said. “You can’t run large deficits forever without consequences.” He stopped short of forecasting a collapse, but the tone of his remarks clearly conveyed unease.
Buffett also took aim at protectionist trade policies, criticizing the use of tariffs as economic weapons. Without naming former President Donald Trump directly, Buffett condemned the approach of imposing steep tariffs, especially on Chinese imports. The U.S. recently rolled out tariffs as high as 145% on Chinese goods, prompting China to retaliate with 125% levies of its own.
“Trade should not be a weapon,” Buffett said. “Trade and tariffs can be an act of war. I think it’s led to bad things—just the attitudes it’s brought out.”
Buffett warned that antagonizing allies and escalating trade tensions with global partners could have long-term geopolitical consequences. “It’s a big mistake, in my view, when you have seven and a half billion people that don’t like you very well, and you’ve got 300 million that are crowing in some way about how well they’ve done. I don’t think it’s right, and I don’t think it’s wise.”
He also spoke to the broader risks of global instability, especially in a nuclear-armed world. “We want a prosperous world,” Buffett said. “In a country with nuclear weapons, and some of them unstable, I don’t think it’s a great idea for some countries to say ‘we won’ and others feel envious.”
As he passed the leadership baton to Greg Abel, Buffett expressed full confidence in the future of Berkshire Hathaway. Abel has long been seen as his chosen successor and has been overseeing Berkshire’s non-insurance operations since 2018. Buffett will remain involved as Chairman and continue to serve as an advisor, ensuring continuity in Berkshire’s unique decentralized operating model.
Despite his warnings, Buffett reiterated his belief in the value of long-term investing and the American system. “The United States won,” he said. “There’s not been anything like it. Starting from nothing 250 years ago, we’ve become an incredibly important country.”
As Wall Street digests Buffett’s farewell appearance, his sobering message about the dollar and the nation’s fiscal health is likely to echo long after the applause fades.
