Warren Buffett's Subtle Message To Trump: 'Spend It Wisely' After Berkshire's Record $26.8 Billion Tax Payment

Warren Buffett, the legendary investor and CEO of Berkshire Hathaway BRKBRK, sent a subtle but pointed message to President Donald Trump in his latest annual letter to shareholders. While celebrating Berkshire’s success, including a record-setting $26.8 billion corporate tax payment in 2024, Buffett urged the government to “spend it wisely.”

A Record Tax Payment and a Message to Washington

Buffett said Berkshire Hathaway paid more in corporate taxes last year than any company in U.S. history, even surpassing the tech giants. 

He emphasized that this contribution should be used responsibly, writing, “Thank you, Uncle Sam. Someday your nieces and nephews at Berkshire hope to send you even larger payments than we did in 2024. Spend it wisely. Take care of the many who, for no fault of their own, get the short straws in life. They deserve better. And never forget that we need you to maintain a stable currency and that result requires both wisdom and vigilance on your part.”

While Buffett has historically avoided direct political commentary in his shareholder letters, his remarks reflect the economic principles he has long supported, including responsible fiscal management and support for those in need. CFRA Research analyst Cathy Seifert told the Associated Press that Buffett's statement was “a powerful message” delivered in a measured, non-confrontational tone.

Berkshire's Growing Cash Reserves and Strategic Moves

Berkshire Hathaway‘s financial strength continues to grow, with cash reserves swelling to $334.2 billion. Theincrease comes after the company sold off significant portions of its Apple AAPL and Bank of America BAC holdings, reflecting a cautious investment approach. Buffett's ability to hold cash and wait for the right investment opportunities has been a key part of his long-term success.

Despite sitting on a massive cash pile, Buffett reassured shareholders that Greg Abel, his chosen successor, is prepared to seize investment opportunities when the time is right. Berkshire made several strategic moves in 2024, including spending $3.9 billion to acquire the remaining stake in its utility business and $2.6 billion to complete ownership of the Pilot truck stop chain. Additionally, the company continued increasing its investment in five major Japanese conglomerates, a strategy that has proven lucrative.

A Mixed Year for Berkshire's Businesses

Buffett acknowledged that 53% of Berkshire's 189 subsidiaries reported lower earnings in 2024. However, the company still posted strong overall results, largely due to higher interest income on its short-term investments and increased profits from its insurance businesses. Berkshire reported $14.5 billion in operating profits for the fourth quarter, up significantly from $8.5 billion the previous year.

Despite these gains, some analysts, including Edward Jones' Jim Shanahan, expressed concern over the softening performance of Berkshire's core businesses. He said Berkshire's broad exposure across manufacturing, retail, and consumer markets makes it a useful economic indicator. “These results kind of look soft to me, and it makes me concerned about how strong the economy might really be right now,” Shanahan told AP.

Changes at the Annual Shareholder Meeting

Berkshire's annual shareholder meeting, often referred to as the “Woodstock for Capitalists,” will undergo some changes this year. Buffett, now 94, announced that the Q&A session will be shorter than usual, running from 8 a.m. to 1 p.m. The traditional opening movie, featuring celebrity cameos and humorous sketches, has been canceled. Buffett humorously acknowledged his age, noting that he now uses a cane to avoid “falling flat on my face.”

Looking Ahead

With Berkshire Hathaway's strong financial position and Abel preparing to take the reins, the company appears well-positioned for the future. Buffett's message to Washington—delivered in his signature understated style—reinforces his belief in sound fiscal management and responsible governance. As Berkshire continues to generate massive tax contributions, the question remains: How will the government choose to spend it?