Buffett Says US Dollar Could ‘Go to Hell,’ Doubles Down on Japanese stocks, Yen

Warren Buffett issued a stark warning on the long-term health of the US dollar at Berkshire Hathaway’s 60^th annual shareholders meeting on Saturday, in what marked his final appearance as chief executive of the investment giant.

Speaking to shareholders in Omaha, the prolific investor voiced concerns over the US’ fiscal trajectory and growing protectionist sentiment, suggesting the dollar could face sustained pressure under certain conditions. “Obviously, we wouldn’t want to be owning anything that we thought was in a currency that was really going to hell,” Buffett said. “There could be things that happen in the US that make us want to own a lot of other currencies.”

The remarks came amid a broader discussion on trade, currency exposure and geopolitical risks. Buffett pointed to Berkshire’s recent investments in Japan as a rare example of the firm shifting its funding towards a foreign currency, the Japanese yen. He attributed the move to the unusually favourable borrowing conditions and confidence in the long-term outlook of the five Japanese trading houses in which Berkshire has invested.

“It’s the first time we’ve done that,” Buffett said, referring to the currency-matched funding. “The funding situation is so cheap... we expect to hold on [to the investments] for 50 or 100 years or more.”

Berkshire vice-chairman Greg Abel, tipped by Buffett as his successor, said the firm was “fundamentally very comfortable” with both the companies and the yen exposure. “The fact we could then borrow in yen was almost just like a nice incremental opportunity,” he added.

Buffett’s comments also spread over to the US domestic policy, where he flagged concerns with the direction of fiscal governance. “The natural course of government is to make the currency worthless over time,” he said. “The value of currency is a scary thing.”

While he did not mention President Donald Trump by name, Buffett was critical of his recent tariff measures that have disrupted global trade flows and rattled markets. “Trade should not be a weapon,” he said. “Tariffs can be an act of war... and I think it’s led to bad things. Just the attitudes it’s brought out.”

Adding to that, the Oracle of Omaha took a harsh stance, calling the high tariffs ‘a big mistake.’

“It’s a big mistake, in my view, when you’ve got seven and a half billion people who don’t like you very much, and 300 million people bragging about how well they’ve done. It’s not right and it’s not wise,” Buffett said.

Regardless of persisting macro instability, Buffett reiterated his confidence in the US economy and stock market. “This is the best place in the world to be,” he said, stating that equities remain the best long-term asset class. However, he cautioned against overreliance on real estate, cautioning that property downturns are often accompanied by added complexity and stress.

Buffett also highlighted Berkshire’s stance to avoid short-term earnings manipulation. “If you start focusing on what number you’re going to produce, you’ll get tempted to play around with the numbers, and sometimes seriously,” he said. “That’s just not something we think about.”

While Buffett did acknowledge past gains from currency positions, such as a multibillion-dollar profit from earlier bets,  he also clarified that such moves are not likely to become a core part of Berkshire’s strategy. “We don’t have any great system for beating that,” he said.

In a surprise move at the end of the shareholder meet, Buffett announced his plan to step down as the CEO by the year end after six-decades of handling the reins of Berkshire Hathaway. Under his leadership, Buffett transformed the company into one of the most valuable conglomerates in the world.