Warren Buffett, the legendary US investor, is known for his conservative approach to money. Instead of spending it recklessly, he prefers to hoard it and invest it wisely. Berkshire Hathaway, his holding company, currently holds a record level of reserves with $189 billion in cash and short-term government bonds at the end of the quarter. Buffett expects these reserves to climb even further after the current quarter.
One of Buffett’s key priorities is finding low-risk ventures that can bring in significant returns. Berkshire owns a diverse portfolio, including insurer Geico, railway company BNSF, and battery manufacturer Duracell. In the last quarter, Berkshire’s insurance business was a key driver of the increase in operating profit to $11.2 billion from just under $8.1 billion in the previous year. At the annual shareholder meeting, Buffett revealed his preferences for a successor, suggesting Greg Abel as his designated successor to make investment decisions. However, the final decision will be made by Berkshire’s board of directors.
Despite being 93 years old and having no plans for retirement, Buffett expressed concerns about fraud with artificial intelligence (AI). He highlighted the potential for harm and uncertainty about its future impact on society. Despite these concerns, Buffett also acknowledged that AI has immense potential to benefit people and businesses alike. As such, he emphasized the importance of responsible AI development and regulation to ensure that its benefits are maximized while minimizing its risks.
In recent years, Berkshire has acquired stakes in Hollywood group Paramount and reduced its stake in Apple by selling 13 percent of its shares during the first quarter of 2021.
Buffett also expressed his grief over missing his long-time business partner Charlie Munger who passed away in November.
Overall, Warren Buffett remains committed to investing wisely and making smart business decisions despite facing challenges such as fraud with AI and market volatility.
In conclusion: Warren Buffett’s approach to investing is unique as he prefers hoarding money instead of spending it recklessly. His holding company Berkshire Hathaway currently holds a record level of reserves with $189 billion in cash and short-term government bonds at the end of the quarter. The company plans to invest this money in low-risk ventures that can bring significant returns while also looking into responsible AI development and regulation to minimize its risks.
