Warren Buffett's Insights on Tariffs: What to Expect at Berkshire Hathaway's Annual Meeting

Investor David Samra has recently highlighted that tariffs are a key focus ahead of the highly anticipated Berkshire Hathaway annual shareholder meeting. In a conversation with CNBC's Becky Quick and Mike Santoli, Samra, who is a portfolio manager at Artisan Partners, expressed his eagerness to hear insights from Warren Buffett regarding tariffs, stating, "I think that it will be interesting to hear, of course, Warren's thoughts around tariffs — that is the topic of the moment." He also conveyed his excitement about hearing from Ajit Jain, Berkshire's vice chairman of insurance operations, emphasizing the importance of addressing current issues impacting the energy sector.

Berkshire Hathaway acknowledged in a recent earnings report that President Donald Trump's tariffs and various geopolitical risks have contributed to an uncertain environment for its diverse portfolio, which encompasses insurance, transportation, energy, and retail sectors. The conglomerate indicated that it is currently unable to foresee any potential impacts from these tariffs. "Our periodic operating results may be affected in future periods by impacts of ongoing macroeconomic and geopolitical events, as well as changes in industry or company-specific factors or events," the report stated. The firm noted that the pace of changes, particularly concerning international trade policies and tariffs, has accelerated, leaving considerable uncertainty about the ultimate outcomes.

Many shareholders are anxiously awaiting Buffett's commentary on the implications of tariff plans. Trump's tariffs have been a significant concern for investors, especially as the market has experienced volatility in recent weeks. Buffett previously described tariffs as "an act of war" and noted that they effectively act as a tax on goods, stating, "I mean, the tooth fairy doesn't pay 'em!" He emphasized the importance of considering the long-term economic consequences of such policies.

Adam Meade, author of The Complete Financial History of Berkshire Hathaway, also weighed in, suggesting that tariffs may hinder businesses within the conglomerate. For instance, he pointed out that Berkshire's furniture retailers may face increased costs due to these taxes, while Geico's car insurance division could be adversely affected as the prices of auto parts rise. Furthermore, the BNSF Railway could see a decline in container volumes if consumer spending decreases as a result of the tariff implementation.

However, there could be an upside to the chaos that tariffs bring. According to Christopher Bloomstran, president of Semper Augustus Investments Group, such turmoil may present opportunities for Buffett to invest at discounted prices. With over $330 billion in cash reserves at the end of the previous year, Buffett is poised to capitalize on market fluctuations. Bloomstran remarked, "Tariffs, trade wars, recessions, depressions, financial panics, pandemics, these are net good for Berkshire. You want a little bit of excitement."

As the date of the annual meeting approaches, all eyes are on Buffett, who has been relatively quiet regarding tariffs and recent market fluctuations. The meeting is set against the backdrop of rising uncertainty following Trump's implementation of significant tariffs on imports. Wall Street economists are increasingly warning of a potential recession, as recent economic data suggests signs of weakening.

Despite not typically making short-term market predictions, investors are keen to glean any insights from Buffett regarding his confidence in the U.S. economy amidst the tariff challenges. The Berkshire Hathaway annual shareholder meeting will be livestreamed by CNBC on Saturday, starting at 8:30 a.m. ET, allowing viewers to witness Buffett's responses to shareholder inquiries. The agenda includes:

Note: The schedule is based on Eastern Time.