Warren Buffet said the American economy would continue to thrive under Trump's presidency
Warren Buffet, a vocal Hillary Clinton supporter, said the United States has a “secret sauce” which means its economy stands up no matter who is leading the country.
And the billionaire hedge fund manager John Paulson, who supported Mr Trump, backed up Mr Buffet’s claims by increasing his firm’s long positions in US shares.
Mr Buffet, who made nearly his entire fortune by taking long positions in big US companies through Berkshire Hathaway, where he is chairman and chief executive, said: “He has the most important job in the world. But America works.
We've got the secret sauce
“It'll work wonderfully under Hillary Clinton. I think it'll work fine under Donald Trump.
"We've got the secret sauce. It doesn't work all the time perfectly, but you just look at where we go, milestone after milestone. Never bet against America.
"I have no idea what the stock market's going to do in the next year. I do know it'll be a lot higher ten years from now, twenty years from now."
Mr Buffet was speaking just hours after Donald Trump's inauguration as the United States' 45th president on Friday afternoon.
John Paulson increased his firm's long positions in support of Trump
Following Mr Trump’s election victory Mr Buffet saw his investment portfolio explode, while bank stocks also surged in anticipation of higher rates and less regulation of Wall Street.
Dubbed the “Oracle of Omaha”, Mr Buffet, who is worth $71.5bn, reiterated his latest comments from December when he said the US would be wealthier after Mr Trump’s presidency.
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Mr Paulson, founder of New York hedge fund Paulson & Co, said: “An administration that supports growth supports everyone.
"Lower taxes, less regulations, less lawsuits, deals that support US manufacturers [are] all very positive."
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He said companies would keep more of their income because of Mr Trump's proposed tax cuts.
Mr Paulson, added: "Companies will have more to invest and a better return on that investment.
“It can be a positive, self-fulfilling prophecy.”
Donald Trump becomes 45th U.S. PRESIDENT
Fri, January 20, 2017
The inauguration of Donald Trump as the 45th President of the United States will mark the commencement of the four-year term of Donald Trump as President and Mike Pence as Vice President. A public ceremony will be held on Friday, January 20, 2017, on the West Front of the United States Capitol Building in Washington, D.C.
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US President Donald Trump points to the stands as he walks with his wife Melania during the Inaugural Parade.
Not all banking bosses at the World Economic Forum on Friday agreed with the two mega-investors’ opinions.
José Viñals, chairman of Standard Chartered, said: "In Europe, there is trepidation about Trump's administration and how his politics will affect global trade and finance.
“Any form of protectionism will likely ultimately make the US economy less competitive and be bad news for the world."
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However, Mary Callahan Erdoes, chief executive of JP Morgan's asset management division, said Mr Trump’s presidency was going to bring about a change which she said would be “positive for business”.
She said: "We are going to have to get used to thinking very proactively and getting excited about growth.
“It is a pendulum swing and it is going to be positive for business. It just is."