Warren Buffett says AI may be better for scammers than society. And he has seen how
OMAHA, NEBRASKA: Warren Buffett warned thousands of shareholders packed into the arena for their annual meeting that artificial intelligence scandals could become an “all-time growth industry.”
Reiterating his cautionary words from last year, Buffett told attendees that he had recently encountered the downside of AI. And it looked and sounded exactly like him. Someone made a fake video of Buffett making it apparently so convincing that the so-called Oracle of Omaha himself said he could imagine it was him tricking him into sending money abroad.
The billionaire investment guru predicted that scammers would take over the technology, and that could cause more harm than good to society.
He said, “As someone who doesn’t understand a great deal about it, there’s a lot of potential for good and a lot of potential for harm and I don’t know how that happens.”
earnings before music
Saturday morning started the day with Berkshire Hathaway announcing a sharp decline in earnings, as the paper value of its investments declined and it reduced its stake in Apple. The company reported first-quarter profit of $12.7 billion, or $8.825 per Class A share, down 64 percent from $35.5 billion, or $24,377 per Class A share, a year earlier.
But Buffett encourages investors to pay more attention to conglomerate operating income than the companies they actually own. Led by the performance of insurance companies, they jumped 39 percent to $11.222 billion, or $7,796.47 per Class A share.
None of this got in the way of entertainment.
Crowds flocked to the grounds to buy Squishmallows of Buffett and former Vice Chairman Charlie Munger, who died last fall. The event attracts investors from all over the world and is unlike any other company meeting. Those attending for the first time are motivated by the excitement of being here while 93-year-old Buffett is still alive.
“This is one of the best events in the world to learn about investing. To learn from the gods of the industry,” said Akshay Bhansali, who spent most of two days traveling to Omaha from India.
a notable absence
Devotees come from all over the world to learn words of wisdom from Buffett, who famously dubbed the meeting ‘Woodstock for capitalists’.
But this year a key ingredient was missing: it was the first meeting after Munger’s death.
The meeting began with a video tribute highlighting some of his most famous quotes, including classic lines like “If people weren’t so often wrong, we wouldn’t be so rich.” The video also features skits the investors have made with Hollywood stars over the years, including a “Desperate Housewives” spoof where one woman introduced Munger as her lover and another had actress Jamie Lee Curtis at it. Was fascinated.
As the video ended, there was a long standing ovation on the field in honor of Munger, whom Buffett called “the architect of Berkshire Hathaway.”
Buffett said Munger remained curious about the world until the end of his life at age 99, hosting dinner parties, meeting people and holding regular Zoom calls.
Buffett said, “Like his hero Ben Franklin, Charlie wanted to understand everything.”
For decades, Manger and Buffett worked as a classic comedy duo, with Buffett offering long setups for Manger’s witty one-liners. He once called unproven Internet companies “turds”.
Together, the pair transformed Berkshire from a faltering textile mill into a giant conglomerate made up of diverse interests ranging from Geico to insurance companies like BNSF Railroad to several major utilities and an assortment of other companies.
Manger often stated that the main essence of Berkshire’s success was “trying not to be constantly stupid, rather than trying to be very intelligent”. He and Buffett were also known for sticking to businesses they understood well.
“Warren always did at least 80 percent of the talking. But Charlie was a great failure,” said Stansberry Research analyst Whitney Tilson, who was looking forward to his 27th consecutive meeting.
next generation leaders
However, Munger’s absence created an opportunity for shareholders to better get to know the two executives who directly oversee Berkshire’s companies: Ajit Jain, who manages the insurance units; and Abel, who handles everything else and has been named Buffett’s successor. The two shared the main stage with Buffett this year.
The first time Buffett asked Abel a question, he accidentally said “Charlie?” Abel ignored the mistake and faced the challenges facing utilities due to increased wildfire risk and the reluctance of some regulators to let them collect fair profits.
Morningstar analyst Gregory Warren said he believes Abel talked too much on Saturday and let shareholders talk about some of Berkshire’s illustrious executives.
“Greg is a rock star,” said Chris Bloomstron, president of Semper Augustus Investments Group. “The bench is deep. In the meeting he will not have the same sense of humor as before. But I guess we all come here every year to get a reminder to be rational.
a look at the future
Buffett has made it clear that Abel will be Berkshire’s next CEO, but he said Saturday that he has changed his opinion on how the company’s investment portfolio should be handled. He previously said the burden would fall on two investment managers who now handle a smaller portion of the portfolio. On Saturday, Buffett endorsed Abel for the program, as well as overseeing operating businesses and any acquisitions.
“He understands businesses very well. And if you understand businesses, you understand common stocks,” Buffett said. Ultimately, it will be up to the board to make this decision, but the billionaire said he would be willing to come back if they try to do it differently. Can and harass them.
Overall, Buffett said Berkshire’s system of having all non-insurance companies reporting to Abell and insurers reporting to Jain is working well. He himself hardly gets any calls from managers anymore as he gets more guidance from Abel and Jain.
Buffett said, “If something happens to me the next day this place will serve me very well.”
Still, the best applause of the day was Buffett’s closing remarks: “Not only do I hope you come next year, I hope I come next year.”