Berkshire Hathaway of Warren Buffett has reported its second quarter of $ 11.16 billion-dollar activity gains-a 4% slight decrease compared to the year. Even though other departments such as modest decrease, railways, energy, retail and production were offered, it was guided by lower insurance profits.
But it wasn’t really notables – it was ton. In the official file, the company warned President Trump that newly imposed tariffs pose a real threat to businesses from Mexico, Canada and China.
Berkshire wrote, or negative results, whether it is not, or not, or not all, or Berkshire wrote.
The buffet put it more clearly and recently a report With Norah O’donnell of CBS.
“Over time, it is a tax for goods. So, it doesn’t pay a dental fairy!
While the tariffs are punished for foreign countries, they usually raise prices for American businesses and consumers. If it costs more expensive to import steel, electronics or grocery stores, someone pays – and you are usually you.
Buffett has long warned how trade restrictions can do:
The latest moves of the Trump administration – limitations on tax outages for $ 250 visa fee and gambling loss recommended for some international travelers – already affect tourism, production and agriculture. Buffett’s companies touch all these sectors, so his concern is not theoretical.
Despite the tone of attention, Berkshire is still extremely profitable and liquid. The company ended the quarter of 347 billion dollars in cash earlier than this year. But instead of spending, Buffett is withdrawn:
Buffett seems to be waiting for better agreements or seems to play for a correction.
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Berkshire has also recorded a $ 3.8 billion loss in Trouble Kraft Heinz investment, which has been reported to weigh a grocery spinoff to revive growth. Earlier this year, two Berkshire director Kraft Heinz resigned from the board of directors, which had confidence.
And even though the stocks have fallen more than 10% of the record summit, Berkshire did not take back any of its own shares – a sign that the firm might expect more space for the fall.
You don’t need to have Berkshire stock to pay attention to this report. The cautious tone of Berkshire should be resonated with daily Americans, especially around the tariffs. Tariffs will lead to higher prices – whether devices, electronic or food, if trade tensions increase, they expect price increases.
Buffett’s warnings point to a fluctuation effect for daily Americans:
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Higher prices in goods imported from key trade partners
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Potential work losses in manufacturing and agriculture due to retaliation tariffs
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More market volatility as investors respond to global trade uncertainty
Food inflation may also remain around. Kraft Heinz’s struggles reflect the challenges in the grocery industry: high input costs, changing consumer tastes, and breaking the pressure of low -performance brands.
Buffett and Berkshire Hathaway are not alone with concerns. Other CEOs and economists expressed their concerns that inflation has cooled and interest rates have stable, as new trade barriers may prevent economic recovery.
Even if there are billions of snow and an army of businesses, Berkshire Hathaway of Buffett shakes a red flag about the situation of the economy.
And when “omaha oracle” is cautious, it is wise to listen. Not only profit, but pay attention to politics.
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This article only provides information and should not be interpreted as advice. It is provided without any warranty.
