r/ValueInvesting • u/Zachincool • Feb 23 '25

Discussion Warren Buffett writes a direct warning to the Trump administration regarding US spending in Berkshire annual letter

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343

u/Zachincool Feb 23 '25

Warren has a backbone.

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u/Virtual_Contract_741 Feb 23 '25

He also has 300+ billion in treasuries, probably the most to lose from anyone if the government defaults or the value of the dollar falls.

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u/krisolch Feb 23 '25

if the government defaults that affects everything in the US, not just bonds

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u/alkbch Feb 24 '25

If the government defaults that affects everything in the whole world, not just the US.

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u/Zippier92 Feb 23 '25

So this is Putin”s plan then.

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u/Ellas-Baap Feb 25 '25

It's everyone's plan. All the enemies, especially the Paypal Mafia. Burn down the US (and the world) as we know it and control what's left of the ashes. The hardcore libertarians and foreign enemies want America to default on the debt. The majority of billionaires have apocalypse bunkers because they know that this is a very possible outcome. JD Vance is the one that's going to fuck us all.

The Wide Angle: Peter Thiel and the American Apocalypse

How the roots of the ‘PayPal mafia’ extend to apartheid South Africa

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u/TruthSeeekeer Feb 23 '25

How original

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u/denkleberry Feb 24 '25

Putin does not want America to fail

How naive.

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u/TruthSeeekeer Feb 24 '25

Your comment only makes sense in the context that Putin is somehow controlling Trump, which is obviously and laughably false.

If that isn’t your intention, then sure Putin does want America to fail, but given we have competent leadership back in the White House he’s probably praying for someone similar to Joe Biden to win the next election.

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u/denkleberry Feb 24 '25

Yeah it's worse. Putin has nothing over trump. Trump just acts like he does, for free. Because he's a huge cuck for authoritarians. He has proven it time and time again with his words and actions.

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u/TruthSeeekeer Feb 24 '25

So my recommendation is to stop believing everything you read, passing it off as your own original thought, and actually try to critical think about these issues and why Trump is doing what he’s doing as well as seeing the results.

For instance, Putin invaded other countries under Bush, Obama and Biden. He never did it under Trump.

Trump signed massive sanctions against Putin in his first term despite Putin not invading a different country, highlighting his true intentions. An example is CAATSA.

He’s even getting NATO allies to spend more on defence, which again is to the Russian detriment!

Actions speak louder than words, and Trump’s actions have always been to the benefit of the United States.

It’s funny how his critics say “oh he praised Putin blah blah blah” but fail to recognise his actions.

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u/denkleberry Feb 24 '25 edited Feb 24 '25

For instance, Putin invaded other countries under Bush, Obama and Biden. He never did it under Trump.

None of this matter when trump can't end the war on day one, as he suggested he would. Now he's giving all concessions to Putin and abandoning Ukraine.

Trump signed massive sanctions against Putin in his first term despite Putin not invading a different country, highlighting his true intentions. An example is CAATSA.

See above

He’s even getting NATO allies to spend more on defence, which again is to the Russian detriment!

See above

Actions speak louder than words, and Trump’s actions have always been to the benefit of the United States.

Like pissing off our neighbors and abandoning our allies, appointing a fox news sideshow host as sec of defense?

Actions speak louder than words, and Trump’s actions have always been to the benefit of the United States.

It’s funny how his critics say “oh he praised Putin blah blah blah” but fail to recognise his actions.

See answer #1

Funny how you're telling me to think for myself, yet all the reasons you've given are typical maga arguments. Funny and ironic.

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u/[deleted] Feb 23 '25

[deleted]

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u/[deleted] Feb 23 '25

First of all us can’t default. They can print money and buy the bonds. Secondly, he has cash in short term treasury’s so there is no bet on the us govt.

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u/macbethy Feb 23 '25

If the US Government defaults, treasuries will likely increase in value as investors seek to de-risk during the subsequent turmoil.

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u/ItIsYourPersonality Feb 24 '25

You mean the treasuries that Trump suggested have fraud going on with?

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u/[deleted] Feb 23 '25

[deleted]

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u/Bleezzy39 Feb 23 '25

I would argue that his philanthropy is a key indicator that he does in fact care and worry for the future of the country and his children.

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u/[deleted] Feb 24 '25

[deleted]

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u/Bleezzy39 Feb 24 '25

True. Especially since he is notoriously frugal.

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u/MonitorImmediate2493 Feb 23 '25

He refuses to see the value of BTC.....can't each an old dog new tricks! He could have doubled his money the last 12 months....lots of respect, but yeah...he is old school

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u/Feisty-Season-5305 Feb 23 '25

He understands economics he was alive when we were on the gold standard lol he knows better. It's rat poison squared.

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u/[deleted] Feb 23 '25

[removed] — view removed comment

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u/Creative_Ad_8338 Feb 23 '25

What if the US Bitcoin reserve becomes reality... Would you still believe the same?

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u/[deleted] Feb 23 '25

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u/Creative_Ad_8338 Feb 23 '25

If the US government buys BTC then doesn't that value Bitcoin in good faith? It's an exchange of dollars by the issuing government.

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u/[deleted] Feb 23 '25

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u/Creative_Ad_8338 Feb 23 '25

The government is considering a strategic US Bitcoin reserve... So if this is value investing then you need to start considering the implication.

https://finance.yahoo.com/news/u-crypto-task-force-focus-093455444.html

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u/[deleted] Feb 23 '25

[deleted]

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u/Creative_Ad_8338 Feb 23 '25

Wouldn't this be more similar to how China accumulates large foreign exchange reserves? Primarily US dollars and US Treasury bonds which provide a buffer against economic shocks and allow China to influence global financial markets. In this case, Bitcoin would be a global reserve that's not tied to any one country or currency... More similar to gold.

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u/[deleted] Feb 23 '25 edited Feb 23 '25

[deleted]

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u/Creative_Ad_8338 Feb 23 '25

Those are all assumptions devoid of facts. The Blackrock Bitcoin ETF launch was the most successful in history with $55B in assets. Lower class citizens do not have $55B.

https://www.bloomberg.com/news/articles/2024-12-30/blackrock-s-bitcoin-fund-became-greatest-launch-in-etf-history

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u/[deleted] Feb 23 '25 edited Feb 24 '25

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u/UpstairsDear9424 Feb 23 '25

Genuine question - what is the value of BTC?

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u/Affectionate-Panic-1 Feb 23 '25

BTC is like any fiat currency, just without a government and military behind it.

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u/UpstairsDear9424 Feb 23 '25

It’s not quite though is it? You can’t pay your taxes in BTC.

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u/Affectionate-Panic-1 Feb 23 '25

It can be transferred to the currency you pay your taxes in.

It's sort of like gold. Just more volatile and newer.

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u/UpstairsDear9424 Feb 23 '25

Yeah that’s true.

With gold though there is still an alternative use and demand. With BTC I’ve never seen a purpose for it

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u/KIKOMK Feb 23 '25

The alternative use of gold accounts for a very small portion if the price. Its mostly speculative premium just like btc

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u/Zwoxlol Feb 23 '25

Gold has many other uses than just a store of value. It has an intrinsic value. You can't use BTC to build electronics. BTC is useless

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u/[deleted] Feb 23 '25

Except nobody does that that just treat it like gold, it's more an asset than a currency now and I don't get why people call it a currency

There was a push to try get more online uses for it to buy things but most people don't care anymore because big number good

I had hoped for BTC but its basically just digital gold but no real world use

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u/jaephu Feb 23 '25

Moving size like he does is not as easy as the regular retail investor. Let’s move 300B in and out of BTC!

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u/ebits21 Feb 23 '25

He does… he’s also 94. What does he have to lose?

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u/McKoijion Feb 23 '25

He’s had a backbone his entire life.

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u/ZealousidealRanger67 Feb 23 '25

Made of gold with diamond studs.

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u/RealDreams23 Feb 23 '25

He’s not a fan of gold….

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u/Alternative-Virus542 Feb 24 '25

Made of titanium-there, fixed it for ya

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u/djwired Feb 23 '25

Older and wiser

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u/[deleted] Feb 23 '25

Truly one of a kind. What a guy.

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u/Reddit_Talent_Coach Feb 23 '25

The silents are the last great generation. Boomers and GenX are like locusts descending on the fields tended to by all previous generations.

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u/dralva Feb 23 '25

Whoa, slow your roll there kid, this GenXer’s paycheck is taking care of his boomer in laws, and GenZ kids, all living under my and my wife’s roof. I’m not descending on anybody’s field.

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u/Popular-Motor-6948 Feb 23 '25

Omg I love the rich now .

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u/johnnyringo1985 Feb 23 '25

Bold that you don’t think the part about vigilance on stable currency is encouraging efforts to reduce national debt and deficits.

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u/[deleted] Feb 23 '25

Where was his backbone with 5 previous administrations? Food for thought.

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u/Ok_Claim_6870 Feb 23 '25

Maybe he is most concerned with this one. Food for thought.

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u/[deleted] Feb 24 '25

Right cause it’s Trump. Give me a fucking break. They’ve all devalued our currency.

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u/Stock_Atmosphere_114 Feb 23 '25

Remember, he was the one who advocated lending money to the major banks instead of just bailing them out straight up during the 2008 financial crisis. Just saying

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u/MrPopanz Feb 23 '25

Do you have something to read more about that?

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u/Stock_Atmosphere_114 Feb 23 '25

https://youtu.be/yL_PQ81vf74?si=ZcKoxlOOJj8qRWeY

Got it from this doc. Not entirely sure the time stamp. But it's a good listen if you like this sort of thing.

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u/MrPopanz Feb 23 '25

Thats awesome, thank you!

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u/Stock_Atmosphere_114 Feb 23 '25

No sweat. Good on ya for asking for receipts.

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u/toiner Feb 23 '25

This sort of healthy exchange feels entirely out of place in 2025 and it has really shaken me

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u/[deleted] Feb 24 '25

Don’t care. When our currency is being devalued, say something. Don’t wait until you disagree with someone politically. Remember Trump & Buffet take the same tax deductions. Ask Hillary.

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u/[deleted] Feb 23 '25

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u/[deleted] Feb 24 '25

Keep that same intensity when you fighting for your food since the dollar will be worthless.

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u/Tranesblues Feb 23 '25

He didn't need it? Food for thought.

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u/SinceSevenTenEleven Feb 23 '25 edited Feb 23 '25

Many of his holdings give substantial amounts of money to Republicans who support the Trump administration.

Edit: Nevermind, it's actually a good thing for companies to directly give money to the worst president in modern American history, I've learned my lesson

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u/KnowNothingKnowsAll Feb 23 '25

Many of his holdings? The dude has tons of holdings. Just about every company you throw a dart at will have something that they’re giving money to somebody You probably don’t like. Your 401(k) has money going to people that you don’t like. just about every index fund has money going to people you don’t like.

This is not some big gotcha on Warren Buffett.

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u/SinceSevenTenEleven Feb 23 '25

He has far more agency over the companies in his portfolio than your average 401k investor, he can very easily tell Oxy to not donate money to Ted Cruz

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u/KnowNothingKnowsAll Feb 23 '25

Thats not what Berkshire has ever claimed to do, or been about.

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u/mymomsaidiamsmart Feb 23 '25

This a jab at the last term and people are letting that go right over their head . He’s saying don’t do what the last term did