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.
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