Warren Buffett Warns of U.S. Dollar Risks, Reflects on Capitalism’s Future

Warren Buffett is raising concerns about the U.S. economy, warning that the dollar’s stability and purchasing power are vulnerable.

In his annual letter to Berkshire Hathaway shareholders, he cautions that irresponsible fiscal policies can rapidly devalue paper currency, a scenario the U.S. has narrowly avoided in the past. Fixed-income investments, he argues, offer little protection against such risks.

Buffett also highlights flaws in capitalism, noting that while the system remains the most effective at driving economic growth, it has become increasingly prone to abuse.

He acknowledges that throughout history, opportunists have exploited investors, yet the overall impact of American capitalism has far exceeded expectations. Despite financial mismanagement and market disruptions, he believes the country’s economic engine continues to deliver unprecedented prosperity.

Reflecting on his tenure, the 94-year-old investor signals that his leadership at Berkshire Hathaway is nearing its end.

He confirms that Greg Abel is set to succeed him as CEO and will take over writing future shareholder letters. Buffett expresses confidence in Abel’s ability to navigate investment opportunities, continuing the firm’s legacy of strategic decision-making.