Warren Buffett Shows Confidence in US Economy
Warren Buffett announced results for Berkshire Hathaway and shared his views about the US economy and impact of coronavirus on companies in which Berkshire has invested. Berkshire Hathaway reported quarterly loss in valuations of its investment to the tune of USD 50 billion. However, for investing community, Berkshire shareholders and economists, views of Buffett on US economic recovery were the most important. Buffett has been one of the most influential and strong cheerleader for the US economy. He has repeatedly said that United States has the strong power to lead the world and to recover from any economic downturn.
This time, Buffett’s views were no different. He informed Berkshire shareholders and investing community that the American economy has ‘magical abilities’ to bounce back from any recession and COVID-19 pandemic will be no different. Buffett said that he and Charlie Munger are in good health. He hasn’t said anything about his successor in this conversation with shareholders.
U.S. is suffering one of the largest and quickest job losses due to COVID-19. The jobless numbers were among the lowest in March but within couple of weeks of partial lockdowns, they jumped to one of the highest noticed in decades. Buffett didn’t give any timeline about when he thinks the economy should start registering gains. However, it would be foolish to make assumptions when there is limited data about the impact of COVID-19 pandemic. United States has been among the worst impacted nations due to coronavirus.
Berkshire is sitting on a huge pile of cash. Buffett sold the stake in four US airlines during April and added that it was his mistake to invest in airlines. Buffett has not said anything about when he plans to invest but everyone in investing community knows that he will get a lot of opportunities once COVID-19 is under control and we start seeing the economic impact of the pandemic.
Business:
Business News
Company Results
General:
Featured
TNM
People:
Warren Buffett
Region:
Omaha
United States
Companies:
Berkshire Hathaway
