Even Warren Buffett, one of the world's most successful investors, seems to be at a loss, as he conceded at the «Woodstock of Capitalism».
The annual general meeting of the U.S. investment firm Berkshire Hathaway is a huge event in American business. Thousands of shareholders flock to Omaha in Nebraska – the happening has become what journalists love to call the «Woodstock of Capitalism».
Like many other events, the Berkshire Hathaway AGM had to take place in unusual surroundings this year – online. Those who watched the proceedings saw a slightly subdued Warren Buffett. The great investor, who turns 90 this year, lamented that his old companion, Charlie Munger, who is 96 years of age, couldn't participate at all due to health concerns and a risk assessment.
Buffett had to present the business year to shareholders all by himself and wasn't able to provide any new impulses. His advice never to bet against the U.S. and his conviction that American magic would always prevail seemed trite at best – empty words much like the ones exuded by U.S. President Donald Trump in his daily briefings.
His Phone Has Stopped Ringing
Other than during the financial crisis in 2008, when Buffett was able to step in and save several big firms, including Swiss Re, the phone didn't ring at Berkshire Hathaway. A fact that the investor and billionaire had readily admitted before the AGM.
Clearly, there are others who can help companies in crisis too, such as private equity firms awash with cash they are ready to invest.
Second Crash Expected
Buffett's reputation will also have been dented by the decision to sell all his shares in airlines (for instance Delta and Southwest), taking a loss of as much as $2 billion. He still holds some stakes in the airline supplier industry, which isn't a great investment at the moment.
Buffett hasn't made any surprising moves recently. This is understandable given that he expects another crash later this year.
Big Book Losses
The stock price of Berkshire Hathaway, currently worth about $267,000, has lost about a fifth of its value this year so far – and the outlook isn't great.
