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The Latest: Buffett says trade war would be bad for world

May 6, 2019
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Warren Buffett, Chairman and CEO of Berkshire Hathaway, speaks during a game of bridge following the annual Berkshire Hathaway shareholders meeting in Omaha, Neb., Sunday, May 5, 2019. (AP Photo/Nati Harnik)

OMAHA, Neb. (AP) — The Latest on investor Warren Buffett’s comments on a variety of topics (all times local):

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7:15 a.m.

Investor Warren Buffett says if the U.S. has a full-blown trade war with China, it will be bad for the entire world.

Buffett appeared on CNBC Monday with Berkshire Hathaway Vice Chairman Charlie Munger and Microsoft co-founder Bill Gates, who serves on Berkshire’s board.

Munger says ending up with a settlement that has some tariffs and both sides feel somewhat disappointed would be a good thing.

Munger said, “A good settlement is better than a lovely world war.”

Gates says the rational thing would be for both sides to agree to a trade deal.

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6:25 a.m.

Billionaire Warren Buffett isn’t a fan of initial stock offerings.

Buffett said on CNBC Monday that he hasn’t ever bought shares in an IPO for Berkshire Hathaway over the past 54 years.

Buffett says that in an IPO, like Uber’s expected offering this week, everyone involved has an incentive to sell the stock. Buffett says he prefers to buy when no one is getting a special commission.

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5:15 a.m.

Warren Buffett says it’s hard to know how a trade war between China and the United States would affect the economy if President Donald Trump follows through on his latest tariff threat because so many other countries are affected.

Buffett appeared on CNBC Monday after holding his annual Berkshire Hathaway shareholders meeting over the weekend.

Trump said over the weekend that he may impose 25 percent tariffs on more Chinese imports, and financial markets began to plunge. The Dow is down 500 points.

Buffett says Trump is making a “nuclear threat” that may bring the Chinese to the table. But it’s impossible to predict the outcome because both countries’ leaders are used to getting their way.