USA billionaire investment guru Warren Buffett said he remains confident in China’s economy as more than 3,000 Chinese investors flocked to Berkshire Hathaway’s annual shareholder meeting, China Business News (CBN) reports.
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For the first time ever, Berkshire Hathaway live streamed the meeting over the internet.
Buffett also criticized companies that repurchase their own shares at too high a price: “They have in mind a limit as to what they pay for any business they buy except their own, and it has become fashionable to repurchase shares”.
Mr Buffett, a staunch supporter of Democrat Hillary Clinton for president, was asked about the regulatory impact on Berkshire if Republican front-runner Donald Trump wins the 2016 USA presidential election.
“That won’t be the main problem”, Buffett said before reassuring shareholders that Berkshire would prosper regardless of who is elected. “The auditors, I don’t think, are necessarily capable of holding that behaviour in check”. Buffett said Saturday he shuns deals that could require Berkshire to post collateral, and that the larger risk is that a disruption to markets – potentially from a cyber or nuclear attack – could make it hard for the largest lenders to value their holdings. The investor said it’s important not to try to copy others who profited in a company’s initial public offering or claimed a lottery jackpot.
Harding University student Fabio Rivera says he and some friends drove up from Searcy, Arkansas to attend the meeting to hear Buffett talk.
The answer ignored a request from New York Times writer Andrew Ross Sorkin to discuss the effect of Coca-Cola on global public health without Buffett touching on his own diet.
“If you really want to improve your longevity prospects, I mean a guy in my position, you have a sex change”, Buffett said, evoking laughter from the audience.
Mr. Buffett also emphasized his worry that derivatives could cause major risks for most of the world’s largest banks if markets were disrupted. He said US businesses will continue to adapt and thrive.
Speaking at Berkshire’s annual shareholder meeting in Nebraska on Saturday, Buffett said it seemed “spurious” to argue that calories from Coke alone were a significant factor in obesity levels.
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USA companies have enjoyed “terrific” returns on equity despite a sustained period of ultra-low interest rates, he added.
