Billionaire Warren Buffett, whose economic insights are always listened to with great interest by the world, gave a gloomy forecast even for his own enterprises: The good times are over. Get used to earning less!
He ranks 6th in the list of the richest people on the planet according to Forbes with a fortune of 112.8 billion dollars. At the same time, he is recognized as the financier with the clearest vision and knowledge of the market, ahead of the new wave of financial analysts, strategists and bankers.
The billionaire expects revenue at most of his Berkshire financial holding’s operations to fall this year as the long-predicted recession already slows economic activity.
He made the warning during the conglomerate’s annual general meeting in Omaha, Nebraska, after Berkshire reported a nearly 13 percent rise in operating income to $8.07 billion in the first quarter, Bloomberg reported.
Despite the success, the majority of our businesses will report lower profits this year than last, Buffett, 92, told an audience of thousands.
In the past six months or so, the “incredible period” for the US economy has come to an end, he said.
Berkshire is often seen as an indicator of economic health because of the expansive nature of its businesses, which range from railroads to electricity and retail.
Buffett has said that Berkshire owes its success to the incredible growth of the U.S. economy over the decades, but his forecast of a slowdown in his firms’ growth rates comes as turmoil at regional banks threatens to limit lending as inflation and more high interest rates continue to have an impact.
The American billionaire also called for the heads of the bankrupt banks to be held accountable for their decisions.
Buffett commented on the situation after the fourth largest bank, First Republic Bank, which was in 14th place in the ranking of American banks, collapsed.
The billionaire criticized the management of this bank, which, according to him, granted mortgage loans to customers that were not secured by state guarantees.
These were loans for huge sums at fixed rates for ten years in advance, he said.
Buffett called such actions by the senior management of First Republic Bank insane, because most of the loans granted are already recognized as “bad”.
Buffett said that for such a policy, management should end up in the dock.
In March, the White House consulted with Buffett about the deepening banking crisis and the billionaire’s possible investment in the US regional banking sector. Buffett has not promised anything in terms of investment, but has held a series of consultations and his decision is expected any moment.
2023-05-07 20:26:03
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