2023-05-07 16:58:39
The financier estimates that the profits of the majority of the participations which it holds, in very varied sectors, will decrease this year.
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Anne Bodescot
Published update
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The financier Warren Buffettwhich held the annual general meeting of its conglomerate on Saturday, Berkshire Hathaway, estimates that the profits of the majority of the participations which it holds, in very varied sectors, will fall this year. Because, with inflation and rising interest rates, the“incredible period” the economy has gone through is coming to an end, predicts the “Oracle of Omaha”. But it is still counting on an increase in profits from its insurance activities, which are less dependent on the economic situation.
The 92-year-old investor is also worried regarding growing tensions between the United States and China. In the fourth quarter, Berkshire Hathaway cut its positions in Taiwan Semiconductor Manufacturing Company (TSMC), the world leader in chips, in which it had nevertheless taken a large stake a few months earlier. This turnaround surprised investors. But Warren Buffett justified it by recalling that if this company was one of the best managed in the world in its sector, he did not like the place where it was located.
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Harsh criticism
The billionaire also took advantage of this general meeting very followed by the financiers to castigate the poor communication of the American authorities during the banking crisis. They should be held responsible for errors made in plain sight, he said, pointing to the insufficient regulation of small banks and the fanciful offers that were once the prerogative of First Republic, before being bought out in emergency by JPMorgan Chase.
“We were treated to a demonstration, with Silicon Valley Bank”, a takeover by the authorities, combined with an extended deposit guarantee, “but people are still confused“, underlined Warren Buffett. Berkshire Hathaway reported a monster profit of $35.5 billion in the first quarter alone.
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