Superinvestor Warren Buffett has sharply criticized the way politicians, regulators and the press have handled the recent problems at US regional banks. He said their ‘very bad’ coverage has unnecessarily scared savers.
“Fear is contagious,” said 92-year-old Buffett at a shareholder meeting of his investment vehicle Berkshire Hathaway. “You can’t run an economy if people are worried about whether their money is safe in banks,” he continued.
‘Tribalism’
Buffett also warned of growing “tribalism” in Washington, where partisanship causes people to talk at cross purposes. ‘We have to gradually refine our democracy in a certain way. But if I still had a choice, I would like to be born in the United States. It’s a better world than we’ve ever had,” said the billionaire.
Buffett’s company has made a lot more profit in the first three months of this year. His investment vehicle Berkshire Hathaway posted quarterly earnings of $35.5 billion, six times more than a year earlier.
Apple
Buffett, also known as the ‘Oracle of Omaha’, owes this significant increase in profits to, among other things, profits from stocks such as Apple in which he invests. What also plays a role is that 2022, the year with which it is compared, turned out very badly for the now 92-year-old American. Berkshire Hathaway lost a total of $22.8 billion last year.
Buffett previously warned that last year’s poor result gave a distorted picture. Because Berkshire Hathaway opts for long-term investments and price fluctuations on a quarterly or annual basis are not a good indicator in the eyes of Buffett and his business partner Charlie Munger, who is already 99. They believe that really good investments eventually become worth more and also yield dividends.
Conglomerate
Berkshire Hathaway came into the hands of Buffett in the 1960s. It turned the then textile manufacturer into a large business empire. Today, the company is a conglomerate with interests in dozens of companies. Berkshire Hathaway is active in the insurance industry, in the rail sector and with energy companies, among others. The company will also host its annual general meeting on Saturday in Omaha, Nebraska. Thousands of investors come to it every year and Buffett and Munger will answer questions.
