From AI To India: Highlights Of Warren Buffett's Berkshire Shareholder Address

The Berkshire Annual Meeting 2024 proceeded in Omaha with Warren Buffett, Greg Abel, and Ajit Jain fielding shareholder queries. This year's gathering marked a significant change as it was the first without Charlie Munger, the vice chairman of Berkshire and Buffett's longtime investment collaborator, who passed away at the age of 99 in late November.

Buffett spoke on a variety of issues, including the India opportunity, stock market outlook, US dollar, AI, Apple stake cuts, global investments and more.

When a shareholder asked if Berkshire is looking for opportunities in the Indian equity market, Buffett said that he was sure that there are loads of opportunities but, "the question is whether Berkshire has an advantage or insights into those business."

“There may be an explored or attended-to opportunity in that area,” but added, “I’m not the one to do it”, reported Bloomberg.

Despite Munger's absence, Buffett's wit and insight remained, upholding Berkshire's essence. Buffett affirmed Greg Abel, aged 61, as his successor, entrusting him with all investment decisions, including the stock portfolio.

The firm’s hoard increased to $189 billion at the end of the first quarter, topping the record it set at year-end. The company also reported first-quarter operating earnings of $11.2 billion, versus $8.07 billion for the same period a year earlier, according to Bloomberg report.

Buffett emphasized concerns over the US fiscal deficit rather than the national debt quantity, highlighting the importance of fiscal policy over monetary policy. He praised Jerome Powell while cautioning against the potential global economic threat posed by unchecked inflation.

Buffett suggested that AI scamming might become a lucrative industry in the future. Buffett warned of AI's potential for both advancement and deception, citing personal encounters with AI-generated content. He likened its impact to the advent of nuclear weapons, foreseeing disruption in labor-intensive sectors within Berkshire's portfolio due to AI's efficiency. “Obviously, AI has potential for good things too, but I do think, as someone who doesn’t understand a damn thing about it, it has enormous potential for good and enormous potential for harm — and I just don’t know how that plays out,” he said.

Buffett remarked on the S&P 500 valuation, suggesting it wasn't a prime time for investments. He reflected on past opportunities and indicated occasional disparities in acquisition strategies between himself, Greg Abel, and other managers.

When asked about the surging Indian markets and Berkshire's potential investment in India, Buffett acknowledged the possibility of untapped opportunities. However, he questioned whether Berkshire Hathaway possessed a competitive edge over professional asset managers who profit from their purchasing strategies rather than the assets themselves.

Berkshire Hathaway reduced its stake in Apple for the second consecutive quarter, trimming its investment in the tech giant by approximately 13% in Q1. Buffett stated they'll hold Apple unless there are significant changes in capital allocation, highlighting Munger's shift in investment strategy.

“We own American Express, Coca-Cola, which are wonderful businesses, and Apple is also one.” Despite cutting stake over the past few quarters, Apple is Berkshire’s largest holding.