Warren Buffett is about to address shareholders and countless admirers following a series of market-moving events — a fresh trade war, devastating wildfires as well as a shocking stock-selling spree at his own Berkshire Hathaway . The 94-year-old “Oracle of Omaha’s” must-read annual letter will be released Saturday at 8 a.m. ET along with Berkshire’s fourth-quarter earnings. Investors are more eager than ever to hear from Buffett about his thinking on the broader market as well as any impact he sees from President Donald Trump ‘s punitive tariffs and the California wildfires on Berkshire’s sprawling businesses. Wildfire exposure While Berkshire, an insurance giant, doesn’t have a huge footprint in the California markets, its large reinsurance business could still see a hit as it absorbs some of the insured losses from the Los Angeles wildfires, which are likely to be the costliest in U.S. history. “It appears that insured losses are going to be in excess of $40 billion. So that’s pretty substantial losses here that are yet to be disclosed,” said James Shanahan, Berkshire analyst at Edward Jones. “Berkshire could have some exposure here to the California wildfires, and it could be large.” Analysts and investors are watching closely for disclosures related to the wildfires in the earnings report. UBS’ Brian Meredith estimated $1 billion in insured loss for Berkshire Reinsurance and a $150 million loss for Berkshire Primary, whose coverage includes commercial property, health-care liability and business owners’ insurance. CFRA analyst Catherine Seifert expects that Geico, a leading auto insurer in California, will incur claims from the California wildfires, but it will be manageable. Tariff impact Buffett, who opined at length in 2018 and 2019 about the trade conflicts that erupted during Trump’s first term, could again comment on the president’s latest high-stakes battle. Trump slapped 25% tariffs on goods from Mexico and Canada , and 10% tariffs on goods imported from China . (The Mexico and Canada tariffs were paused for 30-days on Feb. 3.) A 25% tariff on steel and aluminum imports is set to take effect in March. Years ago, the CEO and chairman of Berkshire called tariffs “a tax on consumers” in an interview. He said back then that aggressive trade policies could cause negative consequences globally, including triggering inflation that could hurt consumers. Investors will also be looking for any color on tariffs in the 10K from Berkshire’s…
Click Here to Read the Full Original Article at Investing…
