Warren Buffett Raises Alarm Over U.S. Dollar Stability in Final Berkshire Hathaway Address

OMAHA:In what is believed to be his final annual address at the Berkshire Hathaway shareholders’ meeting, legendary investor Warren Buffett voiced deep concerns over the long-term stability of the U.S. dollar, signaling a possible global decline in confidence in the currency.

According to international media reports, the 94-year-old billionaire did not cite stocks or real estate as his primary financial worry. Instead, he focused on America’s growing fiscal irresponsibility and its potential to severely undermine the dollar’s value. “Obviously, we wouldn’t want to hold anything denominated in a currency that’s heading toward disaster,” Buffett warned.

He criticized the United States’ expanding fiscal deficits and irresponsible monetary policies, saying these could lead to a historic devaluation of the dollar, posing a major threat to global economic stability. Buffett stressed that without urgent reforms in U.S. fiscal policy, the dollar’s role as the world’s reserve currency could be jeopardized.

Buffett’s stark remarks come at a time when concerns are mounting globally about rising sovereign debt, inflationary pressures, and economic uncertainty. His comments have resonated widely, given the dollar’s pivotal role in international trade and financial markets.

He also criticized the aggressive trade policies during former President Donald Trump’s administration, particularly tariffs on imports. “Trade should not be used as a weapon,” he said, cautioning against protectionism that could further destabilize global commerce.

On investment strategy, Buffett reaffirmed his belief in long-term stock market performance, noting that equities generally outperform other asset classes over time. However, he expressed reservations about real estate, pointing out its complexity and potential challenges. “When real estate goes bad, you’re not just dealing with a few people,” he noted.

Buffett’s remarks are being seen as a wake-up call for policymakers and investors alike.

Would you like a summary of how a weakening dollar could impact global markets and emerging economies?