👴🏻 Buffett spills beans to 13-year old

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GM everyone. This is 2036, the newsletter that makes you smarter on crypto in 3min/day.

Warren Buffett is one of the most celebrated investors of all time.

Every year, he and his partner Charlie Munger host the ultimate Valhalla for nerds, the Woodstock of Capitalism a.k.a the Berkshire Hathaway Annual Meeting.

During the meeting, Warren and Charlie take a bunch of questions from their audience about investing, business, life, etc.

This year, Warren responded to a question by a 13-year-old that:

• is unlike anything he’s ever said before

• nobody will shut up about

It’s worth digging into for 2 min and for your eyes only, that’s what we’ll do today.

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You’ve probably heard of Warren Buffett before. He’s the quintessential happy grandfather figure who spits sage advice to all investors who’ll listen.

And for good reason. The man is worth $112 BILLION and, at the tender age of 92 - still shows up to the office every day.

The investment community carefully analyzes every word spoken by lord Buffett.

And in the past, Buffett has been quick to dismiss the macroeconomic forces facing America.

Until now.

At their latest annual meeting, a 13-year-old girl asked Warren Buffett the following question:

The US national debt is currently at an estimated $31 trillion, about 125% of the US GDP. The Federal Reserve intends to print trillions of dollars.

China, Saudi Arabia, and Brazil, are moving away from the dollar in anticipation of this. Are we likely to face a time when the US dollar is no longer the global reserve currency?

And what can we do to attempt to shelter ourselves from de-dollarization?

A few years ago, Warren would likely have dismissed the question.

In 2021, he wrote that “in its brief 232 years of existence ... there has been no incubator for unleashing human potential like America.

Despite some severe interruptions, our country’s economic progress has been breathtaking. Our unwavering conclusion: Never bet against America.”

But this time around, Buffett took a significantly different tone.

Here’s what he said:

“Nobody knows how far you can go with the paper currency before it gets out of control.

And you don't want to try and pick out the point that does become a problem, because then it's all over. And I think we should be very careful.

It's very hard to see how you recover once you let the genie out of the bottle, and people lose faith in the currency.

We are not as well off in relationship to curbing inflation expectations which become self-fulfilling.

And America is an incredible society. Rich, we got everything going for us. But that doesn't mean we can just print money indefinitely as debt, and it'll be interesting to see how it turns out.

**

When even Warren Buffett, the most pro-American investor out there with a track record of 60+ years spits out vague nonsense like that, you know something’s up.

Now, we’re not doom and gloomers. On the contrary, we’re eternal optimists.

We think the future is a lot brighter than the present.

But it’s hard not to see something is off on the horizon.

Between the bank collapses that almost seem normal now, the move away from the dollar, and the record amount of debt, it pays to be a little cautious in the short term.

So tomorrow, we’ll discuss specific strategies you can take to prepare yourself for some of the changes of the next few years.

And no, they don’t involve just buying bitcoin.

We’ll see you then.

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