Warren Buffett Spoke Out Against Trump In 2016. Ironically, He Was A Big Winner After Trump's Election Victory

In 2016, Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, openly criticized Donald Trump during his presidential campaign. Buffett, a Democrat, was vocal about his support for Hillary Rodham Clinton and didn't hold back regarding Trump's controversial remarks and refusal to release his tax returns. 

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Buffett challenged Trump to release his tax returns and even disclosed his own, countering Trump's claims that Buffett took a massive deduction. “I have copies of all 72 of my returns and none uses a carry forward,” Buffett said at the time. 

Trump made this assertion in reaction to criticism about his 1995 $916 million loss, which, according to reports, may have allowed him to avoid paying federal income taxes for several years.

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Many predicted that Buffett’s investments might suffer if Trump won. But what transpired was very different. The stock market soared following Trump’s victory and Buffett’s company, Berkshire Hathaway, had one of its finest months in six years. 

Despite Buffett's public disapproval of Trump's politics, the market’s response to the new administration's promises of tax cuts and deregulation benefited many of his holdings, especially those in financial services.

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Berkshire Hathaway started as a struggling textile business but has since become a massive company that owns or invests in businesses across various industries, such as insurance, energy and everyday products. It holds big investments in companies like JPMorgan Chase, Goldman Sachs and Coca-Cola, among many others. 

When Trump got elected, many on Wall Street thought his plans for higher interest rates and fewer regulations would benefit financial companies, which in turn helped boost Berkshire's profits.

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Buffett’s refusal to let politics affect his investing choices is evidence of his investing philosophy. Even though he backed Clinton, he clarified that Berkshire would prosper regardless of the election outcome.

As he told shareholders then, “Berkshire would continue to do fine no matter which candidate was elected president.” Buffett's confidence was well-placed and his company prospered under Trump's presidency.

As we approach the 2024 election, people are curious whether Buffett will support Kamala Harris. People in his Omaha neighborhood are checking to see if his front yard will display a “blue-dot” sign for Democratic support. A neighbor started this grassroots movement to show Democratic support in a mostly Republican neighborhood. Although Buffett hasn’t disclosed his position, his daughter already has two blue-dot signs in her yard.

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