Context:

Warren Buffett, at Berkshire Hathaway's annual meeting, criticized America's trade wars, labeling them a 'big mistake' and stating that 'trade should not be a weapon.' He emphasized that the U.S. has become a significant global power without resorting to such measures. Berkshire's quarterly report highlighted concerns that tariffs and changes in international trade policies could negatively impact its growth and financial stability. The company's operating earnings dropped by 14% in the first quarter, with a notable decline in its insurance underwriting business. The meeting, attended by notable figures like Hillary Clinton and Tim Cook, occurred amid market volatility linked to President Trump's tariff policies.

Dive Deeper:

• Warren Buffett expressed his disapproval of America's trade wars, describing them as a 'big mistake' during Berkshire Hathaway's annual shareholders meeting in Omaha, Nebraska. He argued that using trade as a weapon could escalate into an act of war.

• Buffett highlighted the historical success of the United States, which evolved into a global power over 250 years without aggressive trade tactics, emphasizing that there is no precedent for such growth.

• Berkshire Hathaway's quarterly report warned of potential adverse effects on its operations and investments due to changes in macroeconomic conditions and international trade policies, including tariffs.

• The conglomerate's operating earnings experienced a 14% decline in the first quarter, with its insurance underwriting business seeing a nearly 50% drop compared to the previous year.

• The annual meeting, described as 'Woodstock for Capitalists,' was attended by high-profile individuals like Hillary Clinton and Apple CEO Tim Cook, reflecting its significance in the financial world.

• Buffett's comments came amidst significant market fluctuations, driven by uncertainty surrounding President Trump's tariffs and their potential impact on the global economy.

• At 94, Buffett is expected to discuss his succession plans, having been with Berkshire since its formation in 1965, underscoring the anticipation surrounding his leadership decisions.