Warren Buffett, the legendary US investor, is known for his approach of hoarding money instead of spending it. 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. Buffett expects these reserves to climb to over $200 billion after the current quarter. Berkshire is looking for low-risk ventures that can bring in significant returns with its 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 from just under $8.1 billion to $11.2 billion. At the annual shareholder meeting, Buffett expressed his preference for Greg Abel as his designated successor to make investment decisions. However, the final decision will be made by Berkshire’s board of directors.
Buffett is 93 years old and has no plans for retirement. He mentioned missing his long-time business partner Charlie Munger who passed away in November. Berkshire recently acquired a stake in Hollywood group Paramount which experienced a loss. The company also reduced its stake in Apple by selling 13 percent of its shares during the first quarter of the year.
Buffett expressed concerns about fraud with artificial intelligence and particularly deceptively realistic artificial photographs created by AI technology. Despite the potential benefits of AI, Buffett highlighted the potential harm and uncertainty about its future impact on society.
In conclusion, Warren Buffett continues to follow his approach of hoarding money while looking for low-risk ventures that can bring significant returns through his holding company Berkshire Hathaway.