Warren Buffett: America Is Not in Trouble

Some have questioned what the future of America will be with rising debt -- but Warren Buffett of Berkshire Hathaway knows the answer.

May 18, 2014 at 10:30AM


Turn on the news, and it would be justified to think America is going down the toilet.

Political turmoil in Washington.

National debt reaching all-time highs ($17.1 trillion at last count).

Just last fall, Donald Trump has said "Right now, frankly, the country isn't doing well. Recession may be a nice word." 

Warren Buffett disagrees. Strongly.

Putting his money where his mouth is
In 2009, during the depths of the recession, Buffett's Berkshire Hathaway purchased the railroad, Burlington Northern Santa Fe (BNSF), for $44 billion. And when the acquisition in 2009 was announced, Buffett said it wasn't just a bet on the success of BNSF or the railroad industry but:

Most important of all, however, it's an all-in wager on the economic future of the United States. I love these bets. 

The same people preaching doom-and-gloom today doubted Buffett's bet. Those doubters were wrong. Earnings from the railroad have risen by 30% over the last three years. The bet on America paid off:

Source: Company Investor Relations.

Buffett's "bets" on the United States haven't slowed down.

In February of last year Berkshire Hathaway acquired a 50% stake in Heinz for $12 billion.

Its energy unit purchased Nevada energy supplier, NV Energy for $5.6 billion.

And that $18 billion even excludes the $3.1 billion in bolt-on acquisitions made last year -- mostly on American companies. 


But even with investments topping $20 billion, it doesn't just stop there. Berkshire Hathaway made a record $11 billion in purchases of property, plant and equipment in 2013, with nearly 90% of it here in the United States.

Buffett said "though we invest abroad as well," the reason behind this was that, "the mother lode of opportunity resides in America." All of this is to say, Buffett made more than $30 billion in investments in the United States in 2013 alone.

Two weeks ago, at the Berkshire Hathaway annual meeting, Buffett said, "I think American business is doing extraordinarily well."

The key takeaway
Buffett has also said:

Indeed, who has ever benefited during the past 237 years by betting against America? If you compare our country's present condition to that existing in 1776, you have to rub your eyes in wonder. And the dynamism embedded in our market economy will continue to work its magic. America's best days lie ahead.

The United States has always faced questions about its future since it began. Yet it have been blessed by continued progress, innovation, and growth. In 2008, Buffett said "Buy American. I Am" and that mind-set continues today. So go ahead, bet against Buffett. But I wouldn't.


What Warren Buffett is actually buying
Buffett has shown time and time again with his dollars and his his actions he believes in America. And he is so confident in one company's can't-live-without-it business model -- a company that rents a very specific and valuable piece of machinery for $41,000... per hour (that's almost as much as the average American makes in a year!) -- he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report details this company that already has over 50% market share. Just click HERE to discover more about this industry-leading stock... and join Buffett in his quest for a veritable landslide of profits!

Patrick Morris owns shares of Berkshire Hathaway. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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