'I hope I come next year': All the things Warren Buffett said at 1st Berkshire meet without Charlie Munger
‘I hope I come next year’: All the things Warren Buffett said at 1st Berkshire meet without Charlie Munger
In his first Berkshire meeting since Charlie Munger died, Warren Buffett warned of artificial intelligence scams that could become “the growth industry of all time.”
Doubling down on his words from last year, Buffett, in his annual meeting, told the throngs he recently came face to face with the downside of AI.
And it looked and sounded just like him. Someone made a fake video of Buffett, apparently convincing enough that the so-called Oracle of Omaha himself said he could imagine it tricking him into sending money overseas.
The billionaire investing guru predicted scammers will seize on the technology, and may do more harm with it than society can wring good.
“As someone who doesn’t understand a damn thing about it, it has enormous potential for good and enormous potential for harm and I just don’t know how that plays out,” he said. The day started with Berkshire Hathaway announcing a steep drop in earnings as the paper value of its investments plummeted and it pared its Apple holdings.
The company reported a $12.7 billion profit, or $8.825 per Class A share, in first the quarter, down 64% from $35.5 billion, or $24,377 per A share a year ago.
But Buffett encouraged investors to pay more attention to the conglomerate’s operating earnings from the companies it actually owns.
Those jumped 39% to $11.222 billion, or $7,796.47 per Class A share, led by insurance companies’ performance.
None of it that got in the way of the fun.
Buffett said Munger remained curious about the world up until the end of his life at 99, hosting dinner parties, meeting with people and holding regular Zoom calls. “Like his hero Ben Franklin, Charlie wanted to understand everything,” Buffett said.
For decades, Munger and Buffett functioned as a classic comedy duo, with Buffett offering lengthy setups to Munger’s witty one-liners. He once referred to unproven internet companies as turds.
Together, the pair transformed Berkshire from a floundering textile mill into a massive conglomerate made up of a variety of interests, from insurance companies such as Geico to BNSF railroad to several major utilities and an assortment of other companies.
Munger’s absence, however, created space for shareholders to get to know better the two executives who directly oversee Berkshire’s companies: Ajit Jain, who manages the insurance units; and Greg Abel, who handles everything else and has been named Buffett’s successor.
The two shared the main stage with Buffett this year.
The first time Buffett kicked a question to Abel, he mistakenly said “Charlie?” Abel shrugged off the mistake and dove into the challenges utilities face from the increased risk of wildfires and some regulators’ reluctance to let them collect a reasonable profit.
Morningstar analyst Greggory Warren said he believes Abel spoke up more Saturday and let shareholders see some of the brilliance Berkshire executives talk about. Abel offered a twist on Munger’s classic “I have nothing to add” line by often starting his answers Saturday by saying “The only thing I would add.”
“Greg’s a rock star,” said Chris Bloomstran, president of Semper Augustus Investments Group. “The bench is deep. He wont have the same humor at the meeting. But I think we all come here to get a reminder every year to be rational.”
Buffett has made clear that Abel will be Berkshire’s next CEO, but he said Saturday that he had changed his opinion on how the company’s investment portfolio should be handled. He had previously said it would fall to two investment managers who handle small chunks of the portfolio now. On Saturday, Buffett endorsed Abel for the gig, as well as overseeing the operating businesses and any acquisitions.
“He understands businesses extremely well. and if you understand businesses, you understand common stocks,” Buffett said. Ultimately, it will be up to the board to decide, but the billionaire said he might come back and haunt them if they try to do it differently.
Overall, Buffett said Berkshire’s system of having all the noninsurance companies report to Abel and the insurers report to Jain is working well. He himself hardly gets any calls from managers anymore because they get more guidance from Abel and Jain.
“This place would work extremely well the next day if something happened to me,” Buffett said.
Nevertheless, the best applause line of the day was Buffett’s closing remark: “I not only hope that you come next year but I hope that I come next year.
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