Businessman and investor Warren Buffett Trust the United States and his company Berkshire Hathaway (NYSE: BRKa), but JHe criticized the management of the recent crisis in the banking sector He said a standoff over the debt ceiling could bring “disruption” to the global financial system.
Speaking at his conglomerate’s annual meeting, he criticized the way politicians, regulators and the press have handled the recent bankruptcies of Silicon Valley Bank, Signature Bank and First Republic Bank, saying his “very bad” message unnecessarily scared savers away.
Fear is contagious. You can’t run an economy when people are worried about whether their money is safe in the bank.
Buffett also warned of rising “tribalism” in Washington, where partisanship keeps people talking too much. “We have to hone, in some way, our democracy along the way,” he said.
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Said the 92-year-old billionaire The regulators were right to guarantee the funds of Silicon Valley bank depositorsbecause not doing so “would be disastrous”.
He added that shareholders and executives of banks should bear the risks of mismanagement.
A lit match could become a fire or it could explode. You have to punish people who do bad things
Buffett also said he could not imagine that politicians or regulators would be willing to “disrupt the global financial system” even if Washington failed to break the deadlock over raising the debt ceiling.
h2 Buffett’s business/ hour 2 Buffett spoke after hours Berkshire will report quarterly earnings of $35.5 billion It said it bought back $4.4 billion of its shares, indicating that it believes the shares are undervalued. Instead, it sold $13.3 billion in shares in other companies.
The sixth richest person in the world has run Berkshire since 1965Among its dozens are auto insurer Geico and railroad BNSF.
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Berkshire also owns $328 billion in stock, about half of which is in Apple (NASDAQ:AAPL).
Read more: Apple beats quarterly sales estimates; iPhone revenues reach $51.3 billion
h2 Berkshire quarterly results/h2 Berkshire Hathaway reported a profit of $35.5 billion in the first quarter, buoyed by gains from stocks including Apple, while higher investment income and a rebound in auto insurer Geico boosted its operating results.
Berkshire also accelerated its stock buybacksby buying it back at a value of $ 4,400 million, at the same time that it reduced its investments in other securities, such as chevron (NYSE: CVX), which remains one of its largest holdings.
Buffett has run Berkshire since 1965, turning it from a struggling textile company into a conglomerate with dozens of companies.
Diversification has led many investors, not just Buffett supporters, to view Berkshire as a stable, long-term investment, even amid recession fears and worries about the banking sector.
Quarterly operating profit increased 13% to $8.07 billionor about $5,561 per Class A share, from $7.16 billion.
Geico’s pre-tax profit was $703 million, thanks to higher premiums, fewer accidents, and a significant drop in ad spending, which could result in fewer high-risk drivers looking for coverage.
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With information from Reuters
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