04.05.25 - Warren Buffett steps down

Warren Buffett, the 94-year-old “Oracle of Omaha,” announced he will step down as CEO of Berkshire Hathaway by the end of this year. The decision was shared during the company’s annual shareholder meeting yesterday, marking the end of an era for one of the most iconic investors in history.

In the first quarter, Berkshire Hathaway reported a sharper-than-expected decline in operating earnings, reflecting ongoing market challenges. Buffett highlighted growing concerns over global trade tensions. “Trade should not be a weapon” and called it a “big mistake”. Buffett expects that tariff turmoils will weigh in and stressed the importance of patience in uncertain times -“You have to be patient”.

Berkshire’s cash hoard ballooned to a fresh record during the first quarter, showing that Buffett did not use the first-quarter drop in the stock market to deploy the money. In fact, Berkshire was a net seller of stocks for a 10th quarter in a row.Despite a volatile market in the first quarter, Buffett refrained from major stock purchases. Instead, Berkshire’s cash reserves swelled to a record high, underlining the company’s cautious stance. Notably, Berkshire was a net seller of equities for the 10th consecutive quarter.

Markets: -

My view: Warren Buffett’s remarks on trade and caution in the current environment strongly resonate with me. I also did not see the latest market dip as a buying opportunity and have remained on the cautious side. The sharp rebound we saw during the last week felt too fast, too far, and in my opinion, does not reflect the high number of unresolved uncertainties, from geopolitical tensions to economic risks through trade tensions.

Become a member to access more valuable market updates like this.