Warren Buffett compares AI to the creation of Atom Bomb, warns on US slowdown; key takeaways from BH annual meeting

Produced by: Harshita Tyagi
Designed by: Mohsin Shaikh

Billionaire Warren Buffett-led Berkshire Hathaway reported a sixfold jump in its first-quarter earnings. The results were published as Berkshire shareholders descended on Omaha for the company's 59th annual meeting

Berkshire Hathaway posts
$35.5 bn profit in Q1

Berkshire Hathaway said Saturday that it made $35.5 billion, or $24,377 per Class A share, in the first quarter. That's more than 6 times last year's $5.58 billion, or $3,784 per share

Berkshire Hathaway
earnings

Tens of thousands of BH shareholders attended the meeting to hear directly from the ‘Oracle of Omaha’. Long known as the "Woodstock for capitalists", the hours-long event featured Warren Buffett and Vice Chairman of Berkshire Hathaway Charlie Munger, answering questions on a wide swath of topics

Berkshire Hathaway
annual meeting

In the famed meeting, Warren Buffett, the CEO of Berkshire Hathaway, criticised the handling of recent bank failures and warned of potential financial "turmoil" in the US.  The billionaire also laid out his succession plan and discussed his investment in the tech giant Apple

Warren Buffett criticises handling of bank failures

Warren Buffett cited how politicians, regulators, and the media mishandled the failures of Silicon Valley Bank, Signature Bank, and First Republic Bank, and how the "very poor" messaging has frightened depositors. "Fear is contagious," he said, adding that "you can't run an economy" when people worry if their money is safe in banks

Politicians, regulators
mishandled US bank crisis

During the meeting, Warren Buffett said that the US economy will slow down in 2023. He also mentioned that investors will get less return this year than in 2022. The billionaire is positive on Apple, and Berkshire Hathaway may increase stake in Apple further

Berkshire Hathaway may
buy more Apple shares

Warren Buffett also stated that US-China should increase trade by reducing tension. He also advised that it is 'better to invest in Japan than Taiwan due to tensions'

Invest in Japan than Taiwan

In the meeting, Warren Buffett also expressed concerns about the rapid advancement of AI technology and how it could change the world. He also stated that ‘investors will not get much benefit from AI'

Investors to not benefit
from AI

Warren Buffett acknowledged that AI has its limits. However, he also recognized its capacity to do all kinds of things, and that worries him. He emphasised the need to think about the long-term consequences of AI, rather than just its short-term benefits

Long-term consequences
of AI

Talking about AI, Warren Buffett said, “We did invent for very, very good reason, the atom bomb. And, World War II, it was enormously important that we did so. But is it good for the next 200 years of the world that the ability to do so has been unleashed?"

Warren Buffett compares AI
with atom bomb creation

Sharing life lessons on how to avoid the biggest mistakes in life, Warren Buffett said, “You should write your obituary and figure out how to live up to it.” Also, “avoid debt, and in business try to avoid taking on so much risk that a single mistake can wipe you out,” he said

Life lessons by Warren
Buffett

Doling out some life advice, Charlie Munger said, “Spend less than you earn, avoid toxic people and activities, and keep learning throughout your life.”

Avoid toxic people
and activities