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In recent days, social media has been abuzz with false claims attributing comments about President Donald Trump’s tariff policies to Warren Buffett, the chairman of Berkshire Hathaway and one of the most respected investors globally. However, Buffett’s representatives have promptly refuted these assertions.
A statement from Berkshire Hathaway released on Friday emphasized that all such reports regarding Buffett’s alleged remarks are inaccurate. While the statement refrained from mentioning Trump explicitly, it followed shortly after the President shared a video on Truth Social, which asserted he was deliberately causing a 20% drop in stock prices. Although Trump later clarified he wasn’t orchestrating a sell-off, the video claimed, “And this is why Warren Buffett just said, ‘Trump is making the best economic moves he’s seen in over 50 years.'” This statement was inaccurate, as Buffett did not endorse such views.
Buffett’s perspective on tariffs and market fluctuations provides valuable insight for investors navigating the current economic climate. Over the years, he has expressed critical views on tariffs, highlighting their implications on consumer prices and the broader economy.
Buffett on Tariffs: ‘The Tooth Fairy Doesn’t Pay ‘Em!’
Diving into the topic of tariffs, Buffett’s latest comments came during a March interview with CBS News. He articulated that tariffs generally lead to higher costs, stating, “Over time, they are a tax on goods. I mean, the tooth fairy doesn’t pay ’em!” He emphasized the need to consider the ramifications of such economic policies.
Buffett has previously linked tariffs to inflation and consumer challenges. In 2018, he remarked that tariffs imposed during Trump’s first round of trade measures had increased costs for certain businesses under his umbrella. He warned about the potential strain on consumers’ budgets, suggesting that tariffs could exacerbate existing inflation concerns.
Moreover, he has flagged the risks associated with trade wars, where countries engage in reciprocal tariff hikes, potentially disrupting the global economy. In a distinctive analogy, he described tariffs as “an act of war, to some degree,” recognizing the broader implications of protectionist measures.
Buffett on Bear Markets: ‘An Investor’s Best Friend’
With market volatility following Trump’s tariff announcement, the S&P 500 has seen losses but remains above bear market territory, which is defined as a 20% decline from recent highs. Analysts suggest that if a bear market does take hold, it may stem from concerns over an impending trade war and its potential to slow global economic growth.
Buffett has a history of navigating financial downturns. His reflections during the 2008 financial crisis reveal his long-term optimism. In an op-ed for the New York Times, he candidly discussed the chaos affecting both the U.S. and the global financial landscape. Despite acknowledging that challenges would persist in the near term — with unemployment likely to rise and economic activity slowing — Buffett maintained his commitment to investing in American stocks.
He underscored that while the market’s immediate trajectory was unpredictable, historically, businesses have consistently found pathways to innovate and thrive over the long term. Buffett’s encouraging words from 2008 resonate with present-day investors: “But fears regarding the long-term prosperity of the nation’s many sound companies make no sense.” He believed that major firms would continue setting new profit records in the future.
Buffett is known for his strategy of purchasing stocks when they are undervalued, arguing that this approach enhances returns over time. For those with a long-term investment horizon, maintaining a diversified stock portfolio during market downturns can be beneficial. He famously stated, “In short, bad news is an investor’s best friend. It lets you buy a slice of America’s future at a marked-down price.”
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