In a recent interview, American billionaire Warren Buffett recently warned that he believes that another pandemic was on the verge, and he also predicted that it could be worse than that of COVID-19. In an interview titled, ‘Buffett & Munger: A Wealth of Wisdom’ show, the CEO of Berkshire Hathaway said that even though these situations are manageable at the moment but, the world as a whole is not prepared for mass-scale prevention.
Glimpse from the interview
In the interview Buffett expressed his opinions by saying that-
“there will be another pandemic. We know that there is a nuclear, chemical, biological and now cyber threat. Each of them has dire possibilities. It doesn’t seem like it’s something that society is fully prepared to deal with.”
Buffett ranks ninth in the Forbes billionaire ranking, further said that the main lesson coronavirus has taught him is that the world is not prepared to deal with emergency situations. He said that society has a hard time preparing for remote situations, which are bound to happen anytime sooner or later.
The billionaire affirmed that the economic consequences of COVID-19 are falling disproportionately. He noted that many hundreds of thousands or millions of small businesses have been hurt and almost crashed in the market terribly.
Buffett said that the economic impact has been this “extremely uneven” and added that most of the big companies have “overwhelmingly done fine”. He noted that the pandemic “is not over,” but that most companies are doing well and the graph can fluctuate at any point of time.
Buffett’s financial uncertainty
Further, Buffett referred to the automotive companies and said that the virus was “a fabulous success that they did not anticipate”. He recalled that the sector has registered record profits thanks to the reopening and reduction in supply derived from chip storage.
It is worth noticing that with the shutdown of factories and global shortages of semiconductors, the automakers and dealers saw a tremendous surge in every aspect of their business.
Buffett clarifies his take on financial uncertainty
Buffett even accepted that he also faced financial uncertainty of his own, as no one was sure what was going to happen to his airlines BNSF Railway and NetJets in terms of demand.
However, amid all the uncertainty and chaos, Buffett was determined to shift the focus to the industry and helping other companies stay afloat so that they did not have to rely on the government for aid. To support his point of view he said that, “We remind them that they had a rich brother.”
Both the investors aren’t limited only till financial transactions
Legendary investors Warren Buffett and Charlie Munger are enormously popular amongst almost everyone who invests or trades in equities. Markets don’t only look up to their position sizing in various companies; the nonagenarian billionaires are also followed for their opinion on things that are not only limited to financial transactions. The duo expressed their thoughts in the interview.