Omaha, Neb. — Billionaire Warren Buffett says he doesn’t expect a full-blown trade war to develop between the United States and China because both countries benefit so much from trade.
Buffet made the comments at Berkshire Hathaway’s annual shareholders meeting Saturday in Omaha, Nebraska.
Berkshire Vice Chairman Charlie Munger says he’s also optimistic that the two countries will find a way to resolve their trade disagreements without creating lasting ill will toward each other.
Analysts say a list of hard-line demands that the Trump administration handed China this week could make it even more difficult to resolve a trade conflict between the world’s two largest economies.
On a separate issue, Buffett says Wells Fargo is cleaning up its act after the misconduct at the bank in recent years.
Wells Fargo had been trying to repair its reputation after admitting in 2016 that employees opened as many as 2 million accounts without getting customers’ permission to meet aggressive sales targets.
Berkshire Hathaway owns roughly 10 percent of Wells Fargo’s stock, and Buffett said Saturday that he has no plans to sell it.
Buffett says Wells Fargo clearly made a big mistake and had the wrong incentives in place for employees, but now they making strides. He says he sees “no reason to think that Wells Fargo, going forward, will be anything other than a large, well-run bank.”
Berkshire Vice Chairman Charlie Munger was more blunt, as he often is: “It was clearly an error. They are acutely aware of it and don’t want it to happen again.”