Megain -coating Warren Buffet considers that the “seven magnificent” companies – Alphabet, Amazon, Apple, Macrosoft, Nvidia and Tesla – require more capital to function today than for a few years, and reiterated that Berkshire Hathaway seeks high -return companies and low capital need.
“Certainly there is more capital intensity in the seven magnificent now than a few years ago,” he told shareholders. The comment came in response to questions about Buffet’s statements in the past decade, about the low need for capital of Apple – a company in which Berkshire Hathaway, the megain -coating company, has a participation.
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He pointed out, however, that “Apple basically did not need any capital for years and repurchased actions.” He also said that the share of the company helps in other Berkshire operations – such as in the insurance industry, where Apple actions can be used as a guarantee to run the business.
Buffet said that “it is always better to make a lot of money without putting anything than making a lot of money by putting a lot of money,” and this is Berkshire Hathaway’s investment philosophy.
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However, he criticized investment management, a business model that follows this logic. “Many people have been rich convincing other people to put capital. That’s what they do in resource management. Investment management is very good, because other people put capital, and you charges,” said Buffet.
“This can lead to a lot of abuse. Capitalism in the United States has prospered as nothing it has seen, but it is a cathedral coupled with a casino. Everyone is having fun in the casino, but the cathedral also needs to be supplied. It is very important that the United States ensures that the cathedral is not taken by the casino,” he said.
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The mega -coating also said that Berkshire Hathaway will continue to increase its profitability over time, and that acquisitions are a relevant part in this effort. But he stressed that this will not happen “in a stable flow” and that the buying opportunities are “very situational”. “We will do our best business when people are more pessimistic,” he said.
