Famous American businessman Warren Buffett has criticized Wall Street, praising his company, Berkshire Hathaway, for holding onto large cash after buying tens of billions of stocks and companies in March.
Buffett, 91, the company’s president and CEO, and his deputy, Charlie Manger, 98, answered questions he received at the company’s first non-virtual annual meeting since 2019, which was held. in a plaza in downtown Omaha, Nebraska, USA. They were also joined by Vice President Greg Appel, who was named CEO to succeed Buffett.
The meeting came after Berkshire revealed that it raised more than $ 51 billion in shares in the first quarter, including a major holding in Chevron Corp. has stopped buying buybacks for the time being in relation to the shares it owns.
Berkshire also announced that operating profit hasn’t changed much in the first quarter as many companies have been in able to increase revenues despite supply chain disruptions caused by the mutated Omicron strain of the Corona virus and the Russian invasion of Ukraine.
I think we are wise
In his February annual letter to shareholders, Buffett lamented the lack of investment opportunities.
This prompted one shareholder to ask what changed in March when Berkshire bought a 14.6% stake. in Occidental Petroleum and agreed to pay $ 11.6 billion to the Allegheny Corp.
Buffett responded by saying it was simple, explaining that he became interested in Occidental after reading an analyst’s report and Allegheny after a letter he received from its CEO.
“The markets go crazy and sometimes Berkshire has a chance to do something . not because we’re smart . I think we’re sane,” he said.
Berkshire’s cash flow dropped to about $ 106 billion from about $ 147 billion during the first quarter, but Buffett said it was important to have enough on hand.
“We will always have a lot of money . It’s like the oxygen is always there, but if it disappears for a few minutes, it’s all over.”
Buffett, as he has already done in earlier, he criticized Wall Street, saying the stock market is sometimes like a casino. “It’s been happening exceptionally for two years . with the encouragement of Wall Street,” she added.
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