Jakarta, CNBC Indonesia – A seasoned investor who is also one of the richest people in the world, Warren Buffett, provides an updated warning about the world economy. He stated that the pandemic has created economic injustice and is not over.
This statement he made was not without a clear basis of argument. He said that in this pandemic many businesses were very successful but also many businesses, especially MSME businesses, were destroyed.
“The economic impact has been a very unequal one where … hundreds of thousands or millions of small businesses have been harmed in dire ways, but the vast majority of large companies have done well,” the Berkshire Hathaway CEO said CNBC International, Tuesday (30/6/2021).
He considered that this pandemic would still last and there was no certainty when it would end. He reminded business people to anticipate this well.
“It’s not over yet,” said the 90-year-old investor. “I mean, in terms of uncertainty… it’s very unpredictable.”
Furthermore, he also emphasized that the biggest lesson learned from this pandemic is how unprepared the world is for the emergency situation that will inevitably occur.
“I learned that people don’t know as much as they think they do. But the biggest thing you learn is that a pandemic is bound to happen, and it’s not the worst imaginable at all,” Buffett said.
“Society has had a terrible time preparing for things that are far away but possible and will happen sooner or later.”
Meanwhile Buffett’s longtime business partner, Charlie Munger, added that some businesses in the United States (US) are benefiting unexpectedly from this pandemic. One of them is a car showroom business.
Due to factory closures and global semiconductor shortages, automakers and dealers have experienced broader gains.
“It didn’t just bring them back to normal, it created the incredible success they didn’t anticipate,” Munger said.
“Auto dealers are making money they wouldn’t have except for the pandemic.”
In March 2020, the pandemic paralyzed economic activity across America leading to a $20 trillion economic shutdown. GDP in the first quarter of 2020 even fell 31.4%, leading to the prediction of the Great Depression volume II.
Thousands of small businesses were forced to close while big retailers and e-commerce giants took over that niche. From a health perspective, more than 600,000 people have died from Covid in the US.
Currently, concerns about Covid still continue in Uncle Sam’s country even though the vaccination rate has reached above 50%. This concern arises from the Delta variant which is still widespread around the world, including in the US.
(boss / boss)
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