Legendary American investor Warren Buffett, chairman and chief executive officer (CEO) of Berkshire Hathaway (hereafter referred to as Berkshire), plans to retire from the company he has led for the past 60 years at the end of this year.
On the 3rd (local time), Buffett revealed his retirement plans during Berkshire's annual shareholder meeting held in Omaha, Nebraska. He noted that he would recommend Greg Abel, vice chairman of Berkshire's institutional sector, to succeed him as CEO starting at the end of this year during a board meeting scheduled for the 4th.
Buffett designated Abel as his successor in 2021 and tasked him with overseeing the company’s non-insurance business operations. However, as Buffett had previously indicated he had no plans to retire, it was expected that Abel would take over as CEO only after Buffett.
Buffett said he does not plan to sell any of his Berkshire shares upon retirement, describing this as an "economic decision" based on his belief that Abel will lead Berkshire even better.
During the 60th annual shareholders meeting that day, Buffett also expressed negative views on U.S. President Donald Trump's tariff policy. He stated, "Trade should not become a weapon," adding, "As other countries in the world prosper more, it does not mean we lose; rather, we will also prosper alongside them." He further remarked, "We need to trade with the entire world, and we should do what we do best, and other countries should do what they do best."
This is interpreted as meaning that countries, including the United States, should focus on the production and export of products where they have a comparative advantage, while importing products in which other countries have relative competitiveness. This is a contrary opinion to Trump's policy of imposing tariffs to force corporations to manufacture all products sold in the U.S. within the country.
Regarding the record plunge in the stock market last month, Buffett remarked that since he acquired Berkshire, there have been no fundamental issues with the company, although its stock price had halved within a very short period on three occasions. He analyzed, "This is not a dramatic bear market."
He stated, "This is just a part of the stock market," and added, "If someone is scared when the market falls and excited when it rises, then the stock market is a terrible place to participate. I do not mean to criticize specifically, and I understand that people have emotions, but emotions should not dictate investments."
In response to a question about whether the work done by the Department of Government Efficiency (DOGE) has a positive or negative long-term impact on the U.S. economy, Buffett explained, "Bureaucracy is remarkably pervasive and highly contagious." The Department of Government Efficiency led by Tesla CEO Elon Musk is currently stirring various legal controversies while aggressively pursuing government restructuring under the pretext of reducing bureaucracy and wasteful expenditure.
Buffett criticized the government's fiscal deficit, stating it is "unsustainable," and regarding measures to reduce the fiscal deficit, he commented, "It is not something I want to do, but I think it is something that must be done. Congress does not seem to be doing that."
In discussing how technological advancements such as autonomous vehicles might impact Berkshire's business, Buffett also expressed concerns about weapons of mass destruction like nuclear weapons. He stated, "It is a dynamic world. And unfortunately, what we should be most concerned about is that we have learned how to destroy the world."
He continued, "There are eight countries capable of destroying the world, and a ninth will likely emerge, with each of the nine countries, or at least some of them, being led by people I cannot say are perfect." He seemed to target North Korean leader Kim Jong-un, mentioning, "There is a man in North Korea who could do anything if you criticize his hairstyle," and asked, "Why does North Korea need nuclear weapons?"
Each year, shareholders gather at Berkshire's annual meeting to hear Buffett's investment philosophy and thoughts, earning him the nickname "the sage of Omaha." This year, interests in Buffett's views were particularly heightened due to the economic uncertainties caused by President Trump's tariff policy, and a record 19,700 attendees filled the event the day before the meeting.
Berkshire recorded an operating profit of $9.6 billion (approximately 13.4 trillion won) in the first quarter of this year. This is a 14% decrease from $11.2 billion in the first quarter of last year, attributed to poor performance in the primary investment sector of insurance and foreign exchange losses.
Berkshire's cash assets increased from $334.2 billion at the end of last year to $347.7 billion (approximately 487 trillion won) at the end of the first quarter of this year. In its earnings report, Berkshire explained that changes in international trade policies and tariffs could negatively affect the company's operating profits and the value of its investment assets, noting it currently cannot reliably predict the impact of such changes on its financial statements.