Warren Buffett’s final words of warning as Berkshire chairman: US dollar ‘going to hell.’ Shockproof your nest egg now
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Warren Buffett spent more than 60 years building Berkshire Hathaway into one of America’s most powerful companies. Now, at 96, he has relinquished the chairman’s seat — and a warning he delivered at his final shareholder meeting as CEO sounds especially striking in light of that farewell.
“We wouldn’t want to be owning anything that we thought was in a currency that was really going to hell, and that’s the big thing we worry about with the United States currency,” Buffett told shareholders (1) in May 2025.
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Buffett wasn’t declaring that the dollar had already collapsed. He was warning about what relentless government spending and borrowing could eventually do to its value.
“Fiscal policy is what scares me in the United States,” he said.
The federal government has spent more than it collects for decades, covering the shortfall by borrowing and piling ever more debt onto its balance sheet. Buffett warned that this cannot continue indefinitely without consequences.
“We’re operating at a fiscal deficit now that is unsustainable over a very long period of time,” he said. “We are doing something that is unsustainable, and it has the aspect to it that it gets uncontrollable to a certain point.”
Since then, the arithmetic has only become more alarming. Through the first 11 months of fiscal 2026, the federal government ran up another $1.97 trillion (2) deficit. Meanwhile, the national debt has surged past a staggering $40 trillion (3).
That number is almost too large to comprehend. But beneath America’s sprawling fiscal problem lies something that affects every household: the value of its money.
Buffett acknowledged that governments “can issue paper money,” but warned that “the natural course of government is to make the currency worth less over time, and that’s got important consequences.”
Americans don’t have to look far to see those consequences, as inflation has steadily eroded the dollar’s purchasing power for decades. According to the inflation calculator put out by the Federal Reserve Bank of Minneapolis (4), $100 in 2026 has the same purchasing power as just $11.61 did in 1970.
Put another way, nearly 90% of the dollar’s 1970 purchasing power has disappeared — and that’s without the currency reaching anything close to the “hell” scenario Buffett invoked.
The good news? Throughout history, savvy investors have found ways to shield their wealth from inflation’s bite.
Here’s a look at three time-tested strategies.
Own something the government can’t print
When it comes to preserving wealth and fighting inflation, few assets have stood the test of time like gold.
Its appeal is simple: unlike fiat currencies, the yellow metal can’t be printed at will by central banks. This inherently limited supply can help it store value.
Gold is also considered the ultimate safe haven. It’s not tied to any one country, currency or economy, and in times of economic turmoil or geopolitical uncertainty, investors often flock to it — driving prices higher.
Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, has repeatedly highlighted gold’s role in a resilient portfolio.
“People don’t have, typically, an adequate amount of gold in their portfolio,” Dalio told CNBC last year. “When bad times come, gold is a very effective diversifier.”
Over the past five years, as inflation continued to chip away at the purchasing power of the dollar, gold has climbed 149%.
Other prominent voices see further potential. JPMorgan CEO Jamie Dimon has said that in this environment, gold can “easily” rise to $10,000 an ounce.
One way to invest in gold that can also provide significant tax advantages is to open a gold IRA with the help of Newport Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it a compelling potential option for those wanting to ensure their retirement funds are diversified during rough economic times.
Newport Gold also offers a streamlined buyback program with no fees, ensuring you can liquidate your holdings whenever needed, along with best-price assurance.
The best part? You can download their gold guide for free and get up to $20,000 in free silver upon making a qualifying purchase.
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An income-producing inflation shield
But gold isn’t the only asset investors turn to during inflationary times. Real estate has also proven to be a powerful hedge.
When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation.
Over the past ten years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index (5) has jumped by 87%, reflecting strong demand and limited housing supply.
Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn’t exactly hands-off work — managing tenants, maintenance and repairs can quickly eat into your time (and returns).
The good news? You don’t need to buy a property outright — or deal with leaky faucets — to invest in real estate today. Arrived, a real estate platform company backed by investors such as Jeff Bezos, helps investors get into SEC-qualified investments in real estate, including rental homes, vacation rentals and diversified funds.
In addition to any property appreciation, Arrived’s properties can help you earn a passive income stream without any of the extra work that comes with being a landlord. No midnight maintenance calls over burst pipes here.
All you have to do is sign up, then you can view a selection of vetted properties and start investing with just $100. That way, you can make sure the platform is right for you.
Once you become an investor with Arrived, you’ll have access to more than 596 properties in 67 plus markets. Once a property is fully funded, you can also take advantage of Arrived’s secondary market after six months if you want to reshuffle your portfolio.
And, for a limited time, investors can get a 1% account match when opening an account and adding $1,000 or more.
Another option is Lightstone DIRECT, which gives accredited investors access to single-asset multifamily and industrial deals.
Lightstone DIRECT’s direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.
With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.
‘The best thing to do,’ according to Buffett himself
Buffett may be deeply concerned about the dollar’s fate, but make no mistake: He is not betting against America.
In his final annual shareholder letter as CEO, Buffett drew a clear distinction between holding paper money and owning productive businesses.
Berkshire shareholders “can rest assured that we will forever deploy a substantial majority of their money in equities — mostly American equities,” he wrote (6).
He also explained why: “Paper money can see its value evaporate if fiscal folly prevails.” Businesses, by contrast, can often adapt to monetary instability as long as people continue to want their products and services.
That faith in American enterprise has been one of the defining themes of Buffett’s career.
“For 240 years it’s been a terrible mistake to bet against America, and now is no time to start,” Buffett wrote (7) in 2016. “America’s golden goose of commerce and innovation will continue to lay more and larger eggs.”
And everyday investors do not need Buffett’s stock-picking skills to bet on that golden goose. He has offered a remarkably simple way to participate in the long-term growth of American business.
“In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett has famously stated (8). This approach gives investors exposure to 500 of America’s largest companies across a wide range of industries, providing instant diversification without the need for constant monitoring or active trading.
The beauty of this approach is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change.
Signing up for Acorns takes just minutes: link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio.
With Acorns, you can invest in an S&P 500 ETF with as little as $5 — and, if you sign up today with a recurring investment, Acorns will add a $20 bonus to help you begin your investment journey.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see ourethics and guidelines.
YouTube (1); U.S. Department of the Treasury (2), (3); Federal Reserve Bank of Minneapolis (4); S&P Global (5); Berkshire Hathaway (6), (7); CNBC (8)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.