Berkshire Hathaway held its annual meeting and there Warren Buffett explained why he decided to short the position in one of the world’s leading companies, even though its CEO was present.
Warren Buffett changed his investment strategy regarding a technology giant
Berkshire Hathaway held its annual meeting and Warren Buffett spoke to shareholders about some of their latest investment decisions. During the event he stated that he reduced his position in Apple even though he continues to believe in its potential. The CEO of the creator of the iPhone, Tim Cookwas present at the annual meeting, but that didn’t stop Buffett from being clear about it.
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Although the expert said that it is “extremely likely” For Apple to remain the largest holding company in its conglomerate, the company faced a series of obstacles such as the antitrust fine of US$2 billion, the drop in sales in China and the abandonment of an automobile project after a decade of work. He further said that he believes The iPhone may be one of the best products of all time.
The Oklahoma Oracle confirmed that the sale of part of his stake in Apple bolstered the company’s cash reserve, which At the end of the first quarter it stood at a record of US$188.99 billion, compared to US$167.6 billion in the fourth quarter.. In turn, it is estimated that it could reach US$200,000 million this quarter, given current market conditions.
“I think it’s reasonable to assume that it will probably be around $200 billion at the end of this quarter.”Buffett said. Part of the growth in cash accumulation is due to higher interest income after having been buying 3 and 6 month US Treasury bills every Monday. In fact, they earned US$1.9 billion in interest compared to US$1.1 billion in the same quarter of the previous year.
Warren Buffett expressed his doubts about artificial intelligence
The expert said he believes that Scams using this type of technology may be the next big “growth industry.” “Scam has always been part of the American scene, but this would become, if you were interested in investing in scam, the growth industry of all time,” he said.
He added: “I said we let the genie out of the bottle when we developed nuclear weapons and that genie has been doing terrible things lately, and the power of that genie is what, you know, scares me to death.” “I don’t know of any way to put the genie back in the bottle, and AI is something similar”he concluded.
