There has been a lot of talk in recent months about how artificial intelligence is revolutionizing all sectors. Berkshire Hathaway’s annual shareholders’ meeting has been the place where Warren Buffett and his 92 years of experience have faced questions in this regard.
Beyond his personal opinion on AI, the investor was clear about the business opportunities and whether they have diminished with the new technology.
In particular, he was asked about Rise of disruptive technologies and productivity, as well as how this may affect investor strategy.
For his part, Charlie Munger, 99, responded with a somewhat pessimistic tone. The vice president of the company pointed out that there are too many investors and each has to be satisfied with a small piece of the pie. “Get in the habit of doing less,” he said.
Buffett reacted differently.
“I would say there will be a lot of opportunities … no matter the technology … what gives you opportunity is other people talking stupid things, In the last 58 years that we’ve been running Berkshire, I would say there’s been a huge increase in the number of people who have done absurd things,” he explained.
Only 12 words were enough to summarize a very simple, but effective strategy: “What gives you opportunity is that other people do stupid things.”
Buffett has the gift of the word to draw people in and attract attention with his talk, but perhaps more important than the chatter is knowing how to take advantage of the limitations of the environment or decisions, so that based on them, you You can get profit opportunity.
The Oracle of Omaha was speaking in an investment context, giving the example of companies driven by short-term thinking that attract investment and increase stock prices, as opposed to long-term thinking that actually creates value. . something he always defends.
“This world is tailor-made for someone who’s trying to figure out what you do in that job for five, 10, 20 years,” he explained.
But the advice is a clear example of how it can be applied not only to trading and investing, but also to life in general.
