Warren Buffett: Scammers Could Exploit AI Technology, Causing Harm
OMAHA, Neb. (AP) — During his annual meeting, Warren Buffett warned tens of thousands of shareholders that the growth industry of all time could be artificial intelligence scams. Buffett revealed that he recently encountered the downside of AI technology when he came across a fake video of himself, convincing enough to trick him into sending money overseas. The billionaire investing guru expressed his concern that scammers could unleash the technology for harm, sometimes surpassing the good it could potentially bring.
Earnings Before Musings
On a Saturday, Berkshire Hathaway announced a sharp drop in earnings due to the decline in the paper value of its investments and the decrease in its Apple holdings. The company reported a profit of $12.7 billion, or $8.825 per Class A share, in the first quarter, down 64% from $35.5 billion, or $24,377 per A share, compared to the previous year. However, Buffett urged investors to focus on the conglomerate’s operating earnings from the companies it owns, which saw a 39% increase to $11.222 billion, or $7,796.47 per Class A share, driven by the performance of insurance companies.
A Notable Absence
This year’s meeting marked the first time since Charlie Munger’s passing that shareholders witnessed the event without his presence. Munger, whom Buffett referred to as “the architect of Berkshire Hathaway,” was honored through a video tribute featuring his memorable quotes and skits with Hollywood stars. Despite Munger’s absence, executives Ajit Jain and Abel, who manage Berkshire’s insurance units and operating businesses respectively, maintained a strong performance and took the stage alongside Buffett.
Next Gen Leaders
With Munger’s absence, shareholders had the opportunity to further familiarize themselves with the two executives groomed as Berkshire’s future leaders: Ajit Jain and Abel. Abel, Buffett’s designated successor, spoke extensively about the challenges faced by utilities, including the increased risk of wildfires and regulatory hurdles. His contributions were highly regarded by shareholders, who witnessed the brilliance of Berkshire executives firsthand.
A Look to the Future
Buffett confirmed that Abel will assume the role of Berkshire’s next CEO. Additionally, he expressed a change in his opinion on how the company’s investment portfolio should be managed. While he had previously believed that two investment managers should handle small portions of the portfolio, he now endorses Abel for the position. Berkshire’s system of streamlining reporting to Abel and Jain has proven effective, and Buffett is confident in the company’s continuity should something happen to him.
For more AP coverage of Warren Buffett, click here. For Berkshire Hathaway news, click here. Follow Josh Funk on Twitter and LinkedIn.
