Legendary investor Warren Buffett said he wouldn’t “walk into liabilities” by expanding in states like Illinois or New Jersey, which carry billions in pension debt.
In an interview with CNBC, the Oracle of Omaha was asked about how he sees unfunded pension liabilities affecting the economy in the next ten years.
“In the public sector, you know, it’s a disaster,” he said. “…if I were relocating into some state that had a huge unfunded pension plan, I’m walking into liabilities.”
He told CNBC anchor Becky Quick that kind of debt creates uncertainty about how politicians would go about paying for it.
“I’ll be here for the life of the pension plan and they will come after corporations, they’ll come after individuals. They’re going to have to raise a lot of money,” he said.
Buffett didn’t directly refer to Illinois or New Jersey, saying only “praise by name, criticize by category.”