Buffett shares good news on profits, AI thoughts at meeting
Buffett and his partner
"New things coming along doesn't take away the opportunities. What gives you the opportunities is other people doing dumb things," said Buffett, who had a chance to try out ChatGPT with his friend
"The problem now is that partisanship has moved more towards tribalism, and in tribalism you don't even hear the other side," he said.
Both Buffett and Munger said the
"Everything that increases the tension between these two countries is stupid, stupid, stupid," Munger said.
The chance to listen to the legendary investors answer questions about business and life attracts people from all over the world to Buffett's hometown. Some shareholders feel a particular urgency to attend because the two men are both in their 90s.
"
The two capitalists discussed a range of topics, including:
- Buffett said bank regulators need to find a way to punish executives and board members who make risky decisions that doom a bank.
- The
- Buffett said Apple - Berkshire's biggest stock holding - is a wonderful business because of how devoted consumers are to their iPhones. "I don't understand the phone at all," Buffett said. "But I do understand consumer behavior."
-
"We're different," Munger said. "Warren and I are looking for the easy job we can identify."
- Berkshire isn't a big player in commercial real estate but they predicted problems ahead. Munger said the "hollowing out of the downtowns in
- To avoid the biggest mistakes in life, Buffett said, "You should write your obituary and figure out how to live up to it." Also avoid debt, and in business try to avoid taking on so much risk that a single mistake can wipe you out.
- Munger gave similarly simple advice: Spend less than you earn, avoid toxic people and activities, and keep learning throughout your life.
In a nod to the longstanding concerns about their age, Berkshire showed video clips of questions about succession from past meetings dating back to the first one they filmed in 1994. Two years ago, Buffett finally said that
Abel assured the crowd that he knows how Buffett and Munger have handled things for nearly six decades. "I don't really see that framework changing."
Not everyone in
Outside the arena, pilots from Berkshire's NetJets protested over the lack of a new contract and environmental groups questioned why the company's utilities continue to burn coal. Pro-life groups carried signs declaring "Buffett's billions kill millions" to object to his many charitable donations to abortion rights groups.
Three analysts surveyed by data firm FactSet had expected Berkshire to report operating earnings of
However Buffett has long cautioned that those bottom-line figures can be misleading because of wide swings in the value of Berkshire's investments - most of which it rarely sells. Buffett says operating earnings that exclude investments are a better measure of the company's performance. They grew nearly 13% to
Buffett said he expects operating profits to grow this year although the economy is slowing and most of the company's businesses will sell less. He said Berkshire will profit from rising interest rates on its holdings, and the insurance market looks good.
This year's first quarter was relatively quiet compared to a year ago when Buffett revealed he'd gone on a
Edward Jones analyst
Buffett quashed speculation that Berkshire might buy all of Occidental. He said Berkshire won't bid for control of the oil producer although he may buy more shares, and holds warrants to buy another 83.9 million shares.
At the end of this year's first quarter, Berkshire held
Berkshire's insurance unit, which includes Geico and a number of large reinsurers, recorded a
But
Berkshire's BNSF railroad and its large utility unit reported lower profits. BNSF earned
Berkshire owns an eclectic assortment of dozens of other businesses, including retail and manufacturing firms like See's Candy and
Berkshire shareholders rejected a number of proposals that Buffett opposed. Those would have required the company to disclose more about climate change risks and diversity, split Buffett's job into separate chairman and CEO positions, and silence executives' political views.
With Buffett controlling nearly one third of the vote, those proposals never had much chance.
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