Warren Buffett advises Donald Trump to ‘spend wisely’ in Berkshire Hathaway’s annual letter to shareholders: 10 Points

Billionaire investor Warren Buffett, while celebrating another success of his multinational conglomerate Berkshire Hathaway, offered some advice to US President Donald Trump in his annual letter to shareholders on Saturday, February 22. Buffett sent a cautionary message to the US government in his letter to Berkshire Hathaway shareholders, urging the country to ‘spend wisely’, maintain a stable currency and care for those who get “short straws in life.”

The 94-year-old world’s most famous investor acknowledged his advanced age in the letter, telling shareholders he now uses a cane and will spend less time fielding their questions at Berkshire Hathaway’s annual meeting in May 2025.

Also Read: Warren Buffett’s Berkshire Hathaway Q4 profit surges 71% to $14.53 billion on insurance income amid high interest rates

Buffett’s letter was accompanied by Berkshire’s annual report, which reported a third straight record annual operating profit, rising 27 per cent to $47.44 billion. The conglomerate also ended 2024 with a record $334.2 billion of cash and equivalents, reflecting high valuations and aggressive stock sales, especially Apple. Berkshire has been a net seller of equities for nine straight quarters.

Warren Buffett’s letter to shareholders: Here are 10 key highlights

1.Advise to US President Donald Trump: “Paper money can see its value evaporate if fiscal folly prevails,” wrote the Oracle of Omaha in the annual letter. “In some countries, this reckless practice has become habitual, and, in our country’s short history, the US has come close to the edge,” said Buffett, advising Trump to ‘spend money wisely’ and maintain a stable US dollar.

2.Berkshire Hathway’s tax payments: On the tax front, Buffett said the company has paid more tax than the American tech giants.“Still operating under the name of Berkshire Hathaway – paid far more in corporate income tax than the US government had ever received from any company. Even the American tech titans that commanded market values in the trillions.”

3.Berkshire’s Japan investments: Buffett said Berkshire is likely to increase its stakes in all five Japanese trading houses it holds: Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo. At year end, Berkshire invested $23.5 billion in those companies. Over the past six years, Berkshire has spent $13.8 billion on Japanese investments.

Also Read: Warren Buffet’s Berkshire Hathaway Q1 operating profit rises 39% to $11.22 billion, net income drops 64% YoY

4.Greg Abel to be Berkshire’s new CEO: Warren Buffet assured shareholders they would be in good hands after he turned over the conglomerate’s reins to Vice Chairman Greg Abel, saying Abel has “vividly shown his ability” to deploy capital. He also wrote that Greg Abel would be ready to act whenever he spotted significant investment opportunities.

5.Admitted to mistakes: Buffett opened the letter by acknowledging that he has occasionally made mistakes over the years without offering many specific examples. However, he cited Berkshire’s payment of zero income tax in the decade before he took over in 1965 as a sure sign the investment was a mistake.

Also Read: Apple remains Berkshire Hathaway’s biggest holding despite 13% stake cut in Q1, current bet worth $135 billion

6.Reflections on old age: In discussing his age, Buffett said he regularly talks on Sundays with his 91-year-old sister Bertie, using an old-fashioned phone. “We cover the joys of old age and discuss such exciting topics as the relative merits of our canes,” he said. “In my case, the utility is limited to avoiding falling flat on my face.”

7.60th-Anniversary special book: Warren Buffett promised shareholders a chance to buy a special 60th-anniversary book filled with untold stories and lessons from the company’s history at the annual meeting in May 2025.

8.Defending cash pile: “Despite what some commentators view as an extraordinary cash position at Berkshire, most of your money remains in equities. That preference won’t change,” said Buffett, defending his cash pile. “Shareholders can rest assured that we will forever deploy most of their money in equities,” said Buffett. He assured the shareholders that the company would continue to deploy a big chunk of their money into equities.

9.Berkshire stock price: Buffett has lamented the lack of buying opportunities over the last few years as stocks regularly set new highs. The S&P 500 hit a new high on Wednesday, and the Nasdaq was just three per cent below its December peak. Berkshire’s stock price rose 15 per cent last year, while the S&P 500 rose 18 per cent. 

10.Shorter annual meeting in May: In what might be a nod to the 94-year-old Buffett’s age, the legendary investor announced that this year’s shareholder meeting in May, routinely attracts tens of thousands of people, will be shorter. Buffett and Berkshire’s two vice chairmen will only answer questions from 8 a.m. until 1 p.m. — several hours less than usual.