Berkshire Hathaway held its annual meeting on Saturday, where Chairman and CEO Warren Buffett discussed a number of topics, including artificial intelligence taking over the portfolio in the future and the next potential investments.
But Woodstock for Capitalists took place without Charlie Munger, Buffett’s longtime business partner, who died in November. The meeting featured a video tribute to Munger, who served as vice chairman, and praise from Buffett, who said Munger was the best person to talk to about managing money. according to comments broadcast on CNBC.
“I trust my kids and my wife completely, but that doesn’t mean I ask them what stocks to buy,” he said.
Risks of artificial intelligence
Buffett also recalled seeing an image of himself created by artificial intelligence and warned that the technology could become a means of fraud.
“Fraud has always been a part of American life,” he told shareholders. “But it would make me – if I was interested in investing in fraud – it would be the growth industry of all time.”
He then compared AI to nuclear weapons, saying, “I don’t know of a way to put the genie back in the bottle, and AI is somewhat similar,” CNBC reported.
Prospects for succession
Buffett, 93, made it clear three years ago that Greg Abel, vice president of non-insurance operations, would take his place.
But on Saturday he hinted at when new leadership would actually take office, saying “it won’t have to wait too long.” Although he said he felt good, he joked that he shouldn’t sign any four-year employment contracts.
Buffett also confirmed that Abel will be in charge of investment decisions, saying the responsibility “should rest squarely” with the next CEO.
Questions have arisen about Berkshire’s closely watched portfolio as Buffett acknowledged that he delegated some calls and that certain stock selections were made by others.
Canadian investment?
Buffett lamented the lack of attractive investment opportunities in recent years, allowing Berkshire’s massive cash and cash equivalents holdings to reach new record highs.
Indeed, it rose to $189 billion at the end of the first quarter from $167.6 billion at the end of the fourth quarter.
On Saturday, Buffett reiterated that when it comes to investing, “we only make choices in areas that we like.” But he also teased: “We don’t feel uncomfortable in any way putting our money into Canada. We’re actually looking at one thing right now.”
The comments came after he touched on his investments in Japanese trading houses, saying it was “unlikely that we will make any major commitments in other countries.”