2023-05-07 11:23:49
Buffett: Politicians, regulators, and the press are what depositors fear
Total operating profit of Berkshire Hathaway rose 12.6% year-over-year to $8.065 billion in the first quarter, compared to $7.16 billion a year earlier.
The group sold $13.3 billion in corporate stocks during the first quarter of the year, which saw the S&P 500 index rise by 7%.
Speaking at the annual shareholder meeting, the group’s chairman and CEO Warren Buffett criticized how the banks’ crisis was handled, accusing politicians, regulators and the press of causing depositors’ fear.
Buffett said regulators were right to guarantee Silicon Valley depositors’ money, saying not to do so “would have been disastrous.”
Buffett made it clear that bank shareholders and CEOs must bear the risks of mismanagement.
Buffett said that facing the debt ceiling might bring “disruption” to the financial system. He also added that he might not imagine politicians or regulators willing to “disrupt the global financial system”, including if Washington fails to find a solution to raising the debt ceiling.
Despite concerns regarding the debt ceiling file, Buffett stressed that it is unlikely that the US dollar will be abandoned as a reserve currency.
Buffett defended the size of Berkshire Hathaway’s $151 billion investment in Apple, saying that the company’s business is “better” than others, and that the technology company is different from the rest of the companies he owns in the portfolio.
The “Berkshire” has recently acquired 5.6% of the shares of “Apple”, where Buffett confirmed that he may buy more shares in the future.
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