Charles Esther
Warren Buffett did not mince words during his final Berkshire Hathaway annual shareholder meeting in Omaha, Nebraska.
The 94-year-old billionaire warned that the United States is running a fiscal deficit that is “unsustainable over a very long period of time.”
His remarks came just before he announced he would step down as CEO at the end of this year.
Buffett’s comments carried both economic insight and emotional weight as shareholders prepare for a historic leadership change.
A Tough Job That Few Would Want
Buffett emphasized that managing government finances is no easy task.
“I think the problem of how you control revenue and expenses in the government is one that is never fully solved,” he said.
“I don’t think we’re immune from it,” he added.
According to Buffett, the country is currently facing a 7% fiscal gap — a level that far exceeds what is considered sustainable.
He suggested that a 3% gap is more manageable in the long term.
“I think it’s a job I don’t want, but it’s a job I think should be done,” he said.
His words drew applause from the audience in Omaha.
Bureaucracy and Political Inaction
Buffett also voiced concern over the nature of bureaucracy in Washington.
He called it “dangerously contagious” and noted it often lacks proper checks and balances.
When asked about the White House’s cost-cutting initiative, known as DOGE, Buffett declined to dive into its political implications.
However, he acknowledged the effort’s importance in addressing the federal deficit.
Cutting government spending, Buffett admitted, is necessary — but incredibly difficult.
Reflecting on Fiscal Policy and Leadership
Buffett looked back on the efforts of former Federal Reserve chair Paul Volcker, crediting him with preventing past economic crises.
He suggested that similar leadership is needed today.
“Volcker kept that from happening … we’ve come close multiple times,” Buffett said.
He also offered high praise for current Fed chair Jerome Powell.
“Jay Powell is not only a great human being, he’s a very, very wise man,” Buffett remarked.
“But he doesn’t control fiscal policy,” he added.
Trump and Powell’s Economic Clash
While Buffett steered clear of politics, the backdrop of his comments included President Trump’s increasing criticism of Powell.
In recent weeks, Trump has urged the Fed to cut interest rates, escalating tensions between the White House and the central bank.
This adds another layer of complexity to the nation’s economic challenges.
Buffett’s Final Announcement
At the close of the shareholder meeting, Buffett made a historic announcement.
He revealed he would retire as CEO of Berkshire Hathaway at the end of this year.
He recommended that Greg Abel, the company’s Vice Chair, succeed him in the role.
This marks the end of Buffett’s 55-year leadership and the start of a new chapter for the iconic conglomerate.
A Legacy of Financial Responsibility
Buffett has long been a vocal advocate for financial responsibility at both corporate and government levels.
His concerns about the deficit are not new.
In May 2024, he warned that the federal deficit is “what we should be focused on.”
His comments now feel like a final call to action as he passes the baton to the next generation of leadership.
