Warren Buffett, the legendary US investor, has a reputation for hoarding money rather than 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 investment opportunities that can bring in significant returns. The company owns a diverse portfolio including the insurer Geico, the railway company BNSF, and the battery manufacturer Duracell.
Buffett’s insurance business was a key driver of the increase in operating profit to $11.2 billion from just under $8.1 billion in the previous year. At the annual shareholder meeting, Buffett revealed his preferences for a successor, suggesting Greg Abel as his designated successor to make investment decisions. However, the final decision will be made by Berkshire’s board of directors.
Despite being 93 years old, Buffett has no plans for retirement and hopes to continue in his role as CEO of Berkshire Hathaway. He expressed his sadness at missing his longtime business partner Charlie Munger who passed away in November 2021. Berkshire recently acquired a stake in Paramount Pictures Group but experienced a loss due to this acquisition. Additionally, Berkshire reduced its stake in Apple Inc., selling 13% of its shares during the first quarter of 2022.
Buffett also expressed concerns about fraud with artificial intelligence (AI), particularly regarding deceptively realistic AI photographs created using deepfakes technology that could cause harm and uncertainty about their future impact on society.
In conclusion, Warren Buffett continues to follow his philosophy of hoarding money while looking for low-risk investments that can bring significant returns through his holding company Berkshire Hathaway’s diverse portfolio that includes insurers like Geico and battery manufacturers like Duracell among others.