Daylife/Reuters Pictures used by permission
Financier Warren Buffett has said the US government is generally taking the right steps to aid economic recovery. The legendary investor was speaking to 35,000 shareholders of his Berkshire Hathaway company at their annual general meeting in Omaha, Nebraska.
The value of Berkshire Hathaway’s investments fell by nearly 10% in the last year and Mr Buffett’s personal wealth shrank by $25 billion. He told the AGM he expected the company to make further losses this year.
Speaking at the opening of the meeting, Mr Buffett said it had been “a very extraordinary year” and the economy had experienced “a financial hurricane”.
“When the American public pulls back the way they have, the government does need to step in. It is the right thing to do, but it won’t be a free ride.”
But he said the government had reacted well, telling his investors: “Overall, I commend the actions that were taken…”
Berkshire’s range of investments are seen as a bellwether of the US economy.
Some people raised questions on the issue of appointing a successor for 78-year-old Mr Buffett.
But Mr Buffett told the meeting he would not name a successor to begin following him now as all candidates were already running businesses and those not appointed would possibly choose to leave the company, the Associated Press reported.
“It’d be a waste of talent. I don’t really see any advantages in having some crown prince around,” he said.
Know any investors who lost only 10% in the sub-prime meltdown? Even if you’re not an investor, did your “well-managed” 401K do as well?
I ran the numbers, yesterday, on my small number [and size] of investments. Since the Obama administration started with their first executive order, my portfoio has regained 50% of the losses originally suffered. The number would be even higher absent the slow-moving mutual funds I tend to hang onto through thick and thin.
I’m not here to give investment advice; but, some of the stocks I bought since I decided they were at or just above a bottom have increased in value 30% – or more – in the space of a few months.