{"id":76413,"date":"2018-05-06T10:48:17","date_gmt":"2018-05-06T10:48:17","guid":{"rendered":"http:\/\/www.bnreport.com\/us-and-china-will-avoid-something-extremely-foolish-on-trade-warren-buffett\/"},"modified":"2018-05-06T10:48:17","modified_gmt":"2018-05-06T10:48:17","slug":"us-and-china-will-avoid-something-extremely-foolish-on-trade-warren-buffett","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/us-and-china-will-avoid-something-extremely-foolish-on-trade-warren-buffett\/","title":{"rendered":"US and China will avoid &#8216;something extremely foolish&#8217; on trade: Warren Buffett"},"content":{"rendered":"<p>OMAHA, Nebraska: Billionaire <a href=\"https:\/\/economictimes.indiatimes.com\/topic\/Warren-Buffett\" rel=\"noreferrer\" target=\"_blank\">Warren Buffett<\/a> on Saturday said it is not likely that the <a href=\"https:\/\/economictimes.indiatimes.com\/topic\/United-States\" rel=\"noreferrer\" target=\"_blank\">United States<\/a> and China will come to loggerheads on trade, saying the two countries would avoid doing &quot;something extremely foolish.&quot; <\/p>\n<p>&quot;The United States and China are going to be the two super-powers of the world, economically and in other ways, for a long, long, long time,&quot; Buffett said at <a href=\"https:\/\/economictimes.indiatimes.com\/topic\/Berkshire\" rel=\"noreferrer\" target=\"_blank\">Berkshire<\/a> Hathaway Inc&#039;s annual shareholders&#039; meeting in Omaha, Nebraska. <\/p>\n<p>&quot;We have a lot of common interests and like any two big economic entities, there are times when they&#039;ll be tensions, but it is a win-win situation when the world trades,&quot; Buffett said. <\/p>\n<p>&quot;We will have disagreements with each other (both Democrats and Republicans) and we&#039;ll have disagreements with other countries on trade,&quot; Buffett said about a trade war. <\/p>\n<p>&quot;It is just too big and too obvious for that the benefits are huge and the world is dependent on it in a major way for its progress that two intelligent countries will do something extremely foolish,&quot; he said. &quot;We both (U.S. and China) may do things that are mildly foolish from time to time. There is some give and take.&quot; <\/p>\n<p>The Trump administration has drawn a hard line in trade talks with China, demanding a $200-billion cut in the Chinese trade surplus with the United States, sharply lower tariffs and advanced technology subsidies, people familiar with the talks said on Friday. <\/p>\n<p>Buffett, 87, and his longtime partner and fellow billionaire <a href=\"https:\/\/economictimes.indiatimes.com\/topic\/Charlie-Munger\" rel=\"noreferrer\" target=\"_blank\">Charlie Munger<\/a>, 94, are leading Berkshire&#039;s annual meeting in Omaha, Nebraska, where they are fielding five hours of questions from shareholders, journalists and analysts. <\/p>\n<p>Buffett defended Wells Fargo &amp; Co and its chief executive, Tim Sloan, in response to a question asking when Berkshire would ditch the bank, one of its largest common stock holdings. Many shareholders in the audience applauded the question. <\/p>\n<p>&quot;Wells Fargo is a company that proved the efficacy of incentives, and it&#039;s just that they just had the wrong incentives,&quot; said Buffett. <\/p>\n<p>He said that, going forward, the company is not &quot;inferior&quot; as investment or from a moral standpoint &quot;to the other big banks with which it competes.&quot; <\/p>\n<p>Berkshire owns $25.2 billion of Wells Fargo stock as of March 31, down from $29.3 billion three months earlier. <\/p>\n<p>Wells Fargo investors last week gave strong backing to the bank&#039;s directors and executives on Tuesday, indicating they are ready to give its revamped leadership time to rebuild from scandals that included its employees opening potentially millions of sham accounts. <\/p>\n<p>Shortly before the meeting, Berkshire ended its more than year-long stretch of falling operating profit, while a new accounting rule caused the conglomerate chaired by Warren Buffett to suffer an overall net loss. Buffett said the results are not representative of the business. <\/p>\n<p>Operating profit, which excludes investment and derivative gains and losses, rose 49 percent to $5.29 billion, or about $3,215 per Class A share, higher than the $3,116 per Class A share analysts had expected, according to Thomson Reuters I\/B\/E\/S. <\/p>\n<p>The accounting change required Berkshire to report unrealized losses in its equity portfolio, which totaled $170.5 billion at year end, regardless of whether it planned to sell those <a href=\"https:\/\/economictimes.indiatimes.com\/topic\/stocks\" rel=\"noreferrer\" target=\"_blank\">stocks<\/a>. That helped the company to a net loss of $1.14 billion, or $692 per share, compared with net income of $4.06 billion, or $2,469 per share, a year earlier. <\/p>\n<p>The results showed little sign of dimming the enthusiasm of the shareholders who gathered in Omaha. <\/p>\n<p>Berkshire sent out slightly more tickets to this year&#039;s extravaganza than in 2015, when an estimated 42,000 celebrated Buffett&#039;s 50th year at the helm. A couple of million may watch Buffett and Munger online this year via Yahoo Finance. <\/p>\n<p>Outside the convention center, Berkshire shareholders lined up for prime seats in the middle of the night. <\/p>\n<p>William Robertson, a Scottish native who now fights fires and does forestry work in Switzerland, said he got on line at 11:30 p.m. Friday, 7-1\/2 hours before doors opened. This year&#039;s meeting is his third. <\/p>\n<p>&quot;It gets me first place in the queue, I think when people go to so much effort it shows Warren how important he is for us,&quot; Robertson said. <\/p>\n<p>Inside the hall, shareholders snapped selfies with Buffett caricatures, ate ice cream and crawled through an aircraft on exhibit. <\/p>\n<p>When Buffett showed up to look at a BNSF model railroad, a wall of media and shareholders, some holding Buffett figurines, crowded around him as he inched along. &quot;This is me moving at top speed,&quot; he said, to laughter. &quot;Thank you for everything, Warren,&quot; yelled one well-wisher. <\/p>\n<p><strong><a href=\"https:\/\/blockads.fivefilters.org\/\" rel=\"noreferrer\" target=\"_blank\"><\/a><\/strong> <a href=\"https:\/\/blockads.fivefilters.org\/acceptable.html\" rel=\"noreferrer\" target=\"_blank\"><\/a><\/p>\n<p><a href=\"https:\/\/economictimes.indiatimes.com\/markets\/stocks\/news\/us-and-china-will-avoid-something-extremely-foolish-on-trade-warren-buffett\/articleshow\/64046626.cms\" rel=\"noreferrer\" target=\"_blank\">Original Article<\/a><\/p>\n<p>[contf]<br \/>\n[contfnew]<br \/>\n        <img decoding=\"async\" src=\"https:\/\/img.etimg.com\/photo\/60278104.cms\"\/><\/p>\n<h5><a href=\"https:\/\/economictimes.indiatimes.com\/\" rel=\"noreferrer\" target=\"_blank\">ET Markets<\/a><\/h5>\n<p>[contfnewc]<br \/>\n[contfnewc]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>OMAHA, Nebraska: Billionaire Warren Buffett on Saturday said..<\/p>\n","protected":false},"author":1,"featured_media":76415,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202],"tags":[],"class_list":["post-76413","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>US and China will avoid &#039;something extremely foolish&#039; 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