Berkshire Hathaway shareholders meeting to take place this weekend, Buffett says AI fraud could be the next big growth industry

Dubbed as the "Investing Spring Festival Gala," the Berkshire Hathaway shareholders meeting kicked off grandly over the weekend, marking the first meeting without Charlie Munger. Prior to the start of the meeting, a tribute video to Munger was played, and his book "Poor Charlie's Almanack" was also on sale. Approximately 30,000 shareholders at the venue stood up to applaud in respect for this business partner of Buffett for over 60 years.

Charlie Munger, aged 99, reflects on the classic cryptic quotes from the key figure in the Berkshire Empire.

Apple CEO Tim Cook Also Attends, Buffett Explains Why Berkshire Hathaway Reduced Apple Stock

Apple CEO Tim Cook also attended the Berkshire Hathaway shareholders meeting. Berkshire Hathaway has been Apple's largest shareholder outside of ETFs. Cook told CNBC reporters that the company feels "very honored" to have Berkshire as a shareholder.

However, in the first quarter of this year, Berkshire Hathaway reduced its Apple holdings by about 13%. Buffett stated that despite recent sales slowing down, Apple is "very likely" to remain the largest holding in his conglomerate.

Buffett explained that the reduction was due to tax reasons after the investment generated substantial returns, not a reflection of his long-term view on the stock. He believes that tax rates may increase to fund the growing U.S. fiscal deficit, hence the preemptive reduction to avoid higher tax rates.

Based on CNBC's compilation of Berkshire's holdings, Apple remains its largest holding, accounting for 40%, significantly higher than the second-largest holding, Bank of America, at 10.6%.

Buffett Finds Japanese Trading Companies Attractive, Considers Opportunities in Canada

Buffett finds his bet on Japanese trading companies very convincing. He purchased shares on his 90th birthday in August 2020, initially valued at around $6 billion.

Japanese stock market hits historic highs, Berkshire earns $8 billion from investments in five major trading companies

However, Buffett hinted that Berkshire is evaluating potential investment opportunities in Canada, north of the border. He did not disclose specific details about this investment. The company has received confidential treatment for a mysterious stake it acquired in the financial field over the past three quarters.

Cash Reserves Could Reach $200 Billion

According to the first-quarter financial report, Berkshire's cash equivalents rose from $167.6 billion at the end of 2023 to $188.9 billion.

Buffett mentioned that by the end of this quarter, the company's cash holdings could increase to $200 billion.

Buffett stated:

We're willing to spend it, but we won't unless we see something that's very low risk and can make us a lot of money.

This also reflects the soaring stock market in recent years, making Berkshire, with its hands full of cash, hesitant to make moves.

AI Fraud Could Become the Next Major Growth Industry

Buffett believes that AI fraud could become the next major growth industry, likening this technology to nuclear weapons for its potential to bring about significant changes.

While Buffett admits to knowing "nothing" about artificial intelligence, he mentioned seeing the process of AI generating its own images on screen recently, making him nervous about this technology. Fraud has always been part of the American scene, which may pique the interest of those engaged in investment fraud, and AI fraud could rapidly become a growing industry.

He compared AI to nuclear weapons:

When we released the genie from the bottle with nuclear weapons, the genie has done some terrible things lately, and the power of that genie scares me. I don't know of any way to put the genie back in the bottle, and artificial intelligence is a bit like that.

I Hope You Come Next Year, and I Hope I Come Next Year Too

Buffett will celebrate his 94th birthday in August and has appointed Greg Abel, vice chairman of non-insurance operations and chairman of the energy company, as his successor as CEO.

During the meeting, Buffett mistakenly referred to Abel as the late Charlie Munger. He later explained that he had gotten used to it and might "make the mistake again."

However, Abel stated, "It's a great honor."

Lastly, Buffett humorously concluded the Q&A session of the meeting:

I hope you come next year, and I hope I come next year too.