Warren Buffett defended Berkshire Hathaway Inc.’s investments over the previous yr, whereas saving his harshest feedback for a number of the hottest funding autos on the firm’s annual assembly.
Talking onstage from Los Angeles, Mr. Buffett, Berkshire’s chairman and chief govt, and his enterprise companion Charlie Munger took questions for roughly 4 hours. The 2 males stated some particular function acquisition corporations, day merchants and private-equity funds which have pushed valuations in each non-public and public corporations to file ranges had been extra gamblers than traders.
“I don’t thoughts the poor fish that gamble,” Mr. Munger stated Saturday. “I don’t just like the professionals that take the suckers.”
“It’s an ethical failing. It’s not simply silly, it’s shameful,” he stated of SPACs.
Berkshire has been harmed by the rise of a few of these traders as they’ve made it tough for Berkshire Hathaway to place its almost $150 billion to work with a big acquisition. Mr. Buffett stated these teams make investments utilizing different folks’s cash and have a time restrict to deploy money, which drives up costs.