"The Dark Side of Inflation and Recession: Warren Buffett's Thoughts on Banks and Bitcoin".

"The Dark Side of Inflation and Recession: Warren Buffett's Thoughts on Banks and Bitcoin".

 


During a rare CNBC interview, Warren Buffett

criticized deceptive banks, referred to bitcoin

buyers as gamblers, and cautioned investors

about the serious risks posed by inflation and

recession. The Berkshire Hathaway CEO also

discussed his significant investments in five

Japanese companies and praised Tim Cook

and Apple. Additionally, he expressed his

admiration for ChatGPT and other artificial

intelligence tools.

Buffett's dietary preferences were also briefly

mentioned, with the billionaire stating that his

diet remains largely unchanged while visiting

Japan. He mentioned drinking Coca-Cola

during the interview and having eaten

Hershey's Kisses earlier in the day.


During a CNBC interview, Warren Buffett

discussed his lifelong love of certain foods,

joking that he discovered all his favorite dishes

by the age of six and would not give them up

to live longer. The 92-year-old billionaire also

noted that he has been fortunate to maintain

good health and longevity.


Berkshire Hathaway has begun selling some

of its stake in Chinese electric vehicle

manufacturer BYD after a 13-year investment

that resulted in significant profits. Although

Buffett still regards BYD as an excellent

company, he believes there are better ways for

Berkshire to use its money.


Buffett expressed skepticism about the

streaming industry, stating that "streaming is

not really a very good business." He

questioned the ability of streaming companies

to raise prices and stated that traditional movie

distribution is not a fundamentally great

business either. Buffett believes that while

people in the entertainment industry have

made a lot of money, shareholders have not

done well over time.


Warren Buffett discussed his admiration for

Tim Cook, CEO of Apple, calling him "one of

the classiest CEOs" and praising his

management of the company. Buffett noted

that although he doesn't fully understand the

technical aspects of Apple's products, he

recognizes their importance to many

consumers and praised the company's

iterative innovation. He also admitted that

selling some of Berkshire's Apple shares in the

past was a "dumb sale" for tax reasons.


Buffett revealed that he was responsible for

building a $4 billion stake in Taiwan

Semiconductor in the third quarter of 2022,

followed by selling 86% of it over the next

three months. Although he still regards TSMC

as a "fabulous company," he noted the

geopolitical risks involved in owning its stock,

particularly the possibility of Chinese

intervention in Taiwan.


Finally, Buffett expressed skepticism about the

streaming industry, stating that "streaming is

not really a very good business." He also

expressed concern about the reliance of many

companies, including Apple, on China, but

noted that the typical Apple buyer would not be

willing to give up their iPhone for $10,000.


Warren Buffett, the legendary investor, shared

his thoughts on various topics, ranging from

technology to gambling, in a recent interview.

When asked about Bitcoin, he dismissed it as

a "gambling token" that lacks intrinsic value,

but acknowledged the human instinct for

speculation and getting rich quick that drives

its popularity. Buffett also commented on the

recent legalization of sports betting in the US,

saying that people love the idea of easy

money and that he prefers to get rich slowly.


Regarding Apple, Buffett praised CEO Tim

Cook's management of the company and the

iterative innovations that keep their products

desirable and indispensable to many. While

Berkshire sold some Apple shares for tax

reasons, it still holds it as one of two stocks it

kept when it acquired insurer Alleghany.


Buffett also discussed Berkshire's investment

in Taiwan Semiconductor, noting that it was a

"fabulous company" but sold 86% of its stake

due to geopolitical risks. He also expressed his

lack of understanding of artificial intelligence,

such as ChatGPT, despite recognizing its

potential for time-saving and efficiency. He

remains cautious about its impact on society

and prefers to have a better understanding of

its consequences before embracing it fully.


The comments made by Warren Buffett during

Berkshire Hathaway's annual meeting in Los

Angeles. Buffett noted that he wants to buy

good businesses and always wants to have

money, but that the lower trading volume in

markets nowadays means it cannot buy a fifth

of a company in a few weeks as it did with

Occidental in early 2022. He also warned that

several Berkshire subsidiaries are facing a

"tougher world out there in a great many

businesses," and that both inflation and

recession threaten investors. Buffett cautions

against excessive government spending, and

warns it may help politicians stay in office but it

can be harmful for future generations. He

praised the Federal Reserve for taking

decisive action in the spring of 2020 to shore

up the economy at the height of the COVID-19

pandemic. The article also covers Buffett's

comments on commercial real estate, banking

woes, and questionable accounting practices

among banks. Finally, he expects bad actors to

be exposed in the weeks and months ahead

as a tougher economic and market backdrop

takes hold.