Article by Rossi Giacomo
Introduction
Berkshire Hathaway’s 59th annual meeting concluded on Saturday 4 May since Warren Buffett took control of the company. Defined as the “Woodstock of capitalism”, the annual meeting is always eagerly awaited by investors, enthusiasts and professionals for the pills of wisdom offered by the Oracle of Omaha. This 59th edition is also the first without Charlie Munger, who died in November 2023. As always, the appointment does not disappoint expectations with the 93-year-old Warren Buffett who this year ranged from his considerations on AI, the current state of his holdings, possible future opportunities and with the confirmation of Greg Abel as the future CEO of Berkshire.
AI scamming could be next big ‘growth industry’:
Warren Buffett said that artificial intelligence scamming could be the next big “growth industry,” likening the technology to nuclear weapons in its potential for great change. The “Oracle of Omaha” said he doesn’t “know anything” about AI, but recounted a recent encounter with an AI-generated image of himself on screen that made him nervous about the technology.
“When you think about the potential for scamming people, if you can reproduce images that I can’t even tell, that say, ‘I need money,’ as your daughter, ‘I just had a car crash, I need $50,000 wired.’ I mean, scamming has always been part of the American scene, but this would make me, if I was interested in investing in scamming, it’s going to be the growth industry of all time.”
Berkshire has reduced its Apple stake:
When asked why Berkshire trimmed its Apple position, Buffett suggested it was for tax reasons following sizable gains on the investment and not any judgement of his long-term view of the stock. Buffett said it’s “extremely likely” that Apple will remain the largest holding at his conglomerate despite the recent slowdown in sales. The Oracle of Omaha said Berkshire will continue to own some of its top holdings — American Express, Apple and Coca Cola when he’s no longer at the helm and Vice Chairman of Non-insurance Operations Greg Abel takes over. He added that Apple is an “even better business” than American Express and Coca Cola.
Conclusions:
Among the other numerous points covered, the key aspects are: investments abroad are unlikely, except in Canada and Japan. Investments in renewable energy will wait, the time is not yet right. Finally, last but not least, Greg Abel is confirmed as the current heir of the conglomerate, with Buffett placing total trust in him. Once again, Berkshire’s leadership proves to be extremely confident and objective in the economic assessments carried out for the conglomerate.