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Buffett commends US finance steps | |
(about 3 hours later) | |
Investor Warren Buffett had said the US government is generally taking the right steps to aid economic recovery. | |
Mr Buffet was speaking to 35,000 shareholders of his Berkshire Hathaway company at their annual general meeting being held in Omaha, Nebraska. | |
The value of Berkshire Hathaway's investments fell by nearly 10% in the last year and Mr Buffett's personal wealth shrank by $25bn (£17bn). | |
He told the AGM he expected the company to make further losses this year. | |
Speaking at the opening of the meeting, Mr Buffett said it had been "a very extraordinary year" and the economy had experienced "a financial hurricane". | Speaking at the opening of the meeting, Mr Buffett said it had been "a very extraordinary year" and the economy had experienced "a financial hurricane". |
"When the American public pulls back the way they have, the government does need to step in. It is the right thing to do, but it won't be a free ride." | |
But he said the government had reacted well, telling his investors: "Overall, I commend the actions that were taken." | But he said the government had reacted well, telling his investors: "Overall, I commend the actions that were taken." |
He said the economy had experienced a "financial hurricane" and no one could expect perfection. | |
The BBC's North America business correspondent Greg Wood says Mr Buffett is normally greeted by an adoring crowd at the AGM, know as "Woodstock for Capitalists". | |
But this has been particularly bad year, in which Mr Buffett's legendary stock-picking skills seemed to have deserted him, says our correspondent, especially when he lost nearly $3bn after buying a large stake in oil company ConocoPhillips just before the oil price crashed. | |
The year was the worst performance in more than 40 years for man known as the "Sage of Omaha". | |
He has previously said he made some "dumb" investment errors in 2008 and compared the US financial situation to an "economic Pearl Harbour". | |
Berkshire's range of investments are seen as a bellwether of the US economy. | Berkshire's range of investments are seen as a bellwether of the US economy. |
Tough questions | Tough questions |
About 35,000 people are attending the company meeting | About 35,000 people are attending the company meeting |
In a change from previous years, half the questions at the meeting were drawn from email submissions and posed by journalists rather than stakeholders. | |
Mr Buffett has previously said that neither he nor Vice-Chairman Charlie Munger would know the questions in advance. | Mr Buffett has previously said that neither he nor Vice-Chairman Charlie Munger would know the questions in advance. |
"We know the journalists will pick some tough ones and that's the way we like it," Mr Buffett said in a letter to shareholders. | "We know the journalists will pick some tough ones and that's the way we like it," Mr Buffett said in a letter to shareholders. |
Some people raised questions on the issue of appointing a successor for 78-year-old Mr Buffet. | |
The company has said it has three internal candidates for Mr Buffett's Chief Executive Officer role and four for Chief Investment Officer. | The company has said it has three internal candidates for Mr Buffett's Chief Executive Officer role and four for Chief Investment Officer. |
But Mr Buffett told the meeting he would not name a successor to begin following him now as all candidates were already running businesses and those not appointed would possibly choose to leave the company, the Associated Press reported. | But Mr Buffett told the meeting he would not name a successor to begin following him now as all candidates were already running businesses and those not appointed would possibly choose to leave the company, the Associated Press reported. |
"It'd be a waste of talent. I don't really see any advantages in having some crown prince around," he said. | "It'd be a waste of talent. I don't really see any advantages in having some crown prince around," he said. |
Despite its troubles, Berkshire Hathaway has fared much better than many other funds in a year of huge stock market declines. | Despite its troubles, Berkshire Hathaway has fared much better than many other funds in a year of huge stock market declines. |
Mr Buffett has said he is prepared to hold his investments for a long time - until they come good, says our correspondent. | Mr Buffett has said he is prepared to hold his investments for a long time - until they come good, says our correspondent. |