TLDR:
- Berkshire Hathaway reported strong first-quarter earnings.
- Buffett discussed selling Apple stock, AI, and succession planning at the annual shareholders conference.
Warren Buffett’s Berkshire Hathaway reported significant profits in the first quarter, with a record $189 billion in cash and Treasuries. The conglomerate’s operating profit surged, thanks to a 185% year-over-year increase in insurance underwriting earnings. During the annual shareholder conference, Buffett emphasized the importance of the insurance business at Berkshire.
Berkshire also offloaded a net $17 billion worth of stocks, with a reduction in Apple holdings, although it remains the conglomerate’s largest common stock holding. Buffett hinted at continuity in holding Apple, American Express, and Coca-Cola when his successor, Greg Abel, takes over.
The absence of Charlie Munger, Buffett’s longtime business partner who passed away recently, was felt at the conference. Buffett reminisced on their relationship and noted Munger’s impact on decisions at Berkshire.
Buffett also discussed the impact of autonomous vehicles on GEICO auto insurance revenues and succession planning at Berkshire. He handed over daily operations to Abel and Jain, positioning them for leadership roles in the future.
Buffett addressed the potential impact of AI, likening it to an uncontrollable genie. He expressed concerns about its potential for both good and harm, highlighting a video generated by AI using his likeness without his approval.
Overall, the conference provided insights into Berkshire’s strategic decisions, succession planning, and Buffett’s viewpoints on AI and emerging technologies.