Admitting limited capabilities and energy, comparing AI with “no understanding at all” to nuclear weapons, and confirming that the next CEO will completely take over investment decisions, the company's focus is still on the US. It is still investigating investing in Canada, and its cash rose to 200 billion US dollars in the second quarter.
On Saturday, May 4, Buffett, the “stock god” who is about to turn 94, led a five-hour Q&A session at the Berkshire Annual Shareholders' Meeting.
He quipped that he probably won't sign any more four-year employment agreements:
My reading speed, physical strength, and operational efficiency have all declined, which is much lower than 30 years ago. If the subsidiary management has better people to report on the job, why should they come to me?
Bad experiences such as being impersonated made Buffett nervous, and likened AI to the invention of nuclear weapons:
I don't have any suggestions on how the world should handle it, and as someone who doesn't know anything about it, I do think it has huge potential benefits and huge potential harms, just don't know what the results will be.
Buffett confirmed that Apple will still be Berkshire's largest stock position:
Unless there is a dramatic event that actually changes the allocation of capital, we will use Apple as our biggest investment.
He also hinted that the sale of Apple stemmed from hoping to avoid high tax rates in the future:
The fiscal deficit will be the problem, and the US government may raise taxes to deal with it.
Buffett confirmed for the first time that the next CEO, Abell, will completely take over investment decisions:
He is solely responsible for Berkshire's capital allocation. I don't want 200 people managing $1 billion each.
Abel said that during any transformation, the capital allocation principles that Berkshire follows today will continue to exist.
Buffett reiterated that Berkshire's investment focus remains the US:
I know America's rules, weaknesses, strengths, etc., and I don't know much about other cultures. Berkshire is unlikely to make a major mistake if it sticks to America's local-oriented position.
Buffett is “very satisfied” with the return on investing in Japan. He handed over his investment in India to the next management, and is currently looking into investing in Canada.
He is in no hurry to trade for the sake of making a deal. “We only swing in the direction we like,” predicting that cash will rise to 200 billion US dollars at the end of the second quarter.
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