OtherWe have only one book at the bookstore of the bookworm this year. Normally we have about 25, but we have poor Charlie's Almanac, fourth edition. And I think we sold about 2,400 of them yesterday, and that will be the only book. Next year, we'll go back to having our usual selection. But we thought we would just turn it over to Charlie this year.
WarrenOur cash in Treasury bills were $182 billion at the quarter end. And I think it's a fair assumption that they probably about $200 billion at the end of the end of this quarter. We'd love to spend it, but we won't spend it unless we think we're doing something that has very little risk and can make us a lot of money.
QuestionerHave you or your investment managers view? of the economics of Apple's business or its attractiveness as an investment changed since Berkshire first invested in 2016?
WarrenNo, I would, but we have sold shares. And I would say that at the end of the year, I would think it's extremely likely that that Apple is the largest common stock holding we have. Now, we don't mind paying taxes at Berkshire. And we are paying a 21% federal rate, and the gains we're taking in Apple. And that rate was 35% not that long ago, and it's been 52% in the past when I've been operating. And the government owns, the federal government owns a part of the part of the government. of the earnings of the business we make. They don't own the assets, but they own a percentage of the earnings. And they can change that percentage any year. And the percentage that they've decreed currently is 21%. And I would say with the present fiscal policies, I think that something has to give. And I think that higher tax are quite likely. And if I'm doing it at 21% this year and we're doing it at a higher percentage later on, I don't think you'll actually mind the fact that we sold the little apple this year. I understand the United States rules, weaknesses, strengths, whatever it may be. I don't have the same feeling for economies, generally. economies generally out around the world. I don't I don't pick up on other cultures extremely well. And the lucky thing is I don't have to because, you know, I don't live in some tiny little country that has no, just doesn't have a big economy, but I've got an economy already that has, you know, after starting out with a half a percent of the world's population has ended up with well over 20% of the world's output. output in an amazingly short period of time. So, so I, we will, we will be American-oriented.
[3:47]
Greg AbelI mean, if we do something really big, it's extremely likely to be in the United States. Will Berkshire, through BHE, continue to invest resources and jurisdictions where corporate assets may be subject to confiscatory state policies and actions?
WarrenWe will do it at, at a rate of return. that is not designed to make us rich or anything like that. It's a sensible rate of return, but we won't do it if we think we're not going to get any return. It would be kind of crazy. And we've seen actions in a few states where some of the costs associated with climate change. you're not being regarded as a loss to the utility shouldn't incur we've got the knowledge to participate big in something that is enormously important for the country but we're not going to do it we're not going to we're not going to throw good money after after bad Charlie I'm so used to myself a couple times already, but I'll slip, I'll slip again. That's a great honor word.
QuestionerHow do you think about the role of technological advances, especially generative AI, on more traditional industries?
WarrenI don't know anything about, about AI, but I do have, I don't know, that doesn't mean I deny it's existence or importance or anything of a sort of. And last year I said, you know, that we let a gene. out of the bottle when we when we developed nuclear weapons and that genie has been done doing some terrible things lately and AI is somewhat similar it's out it's part way out of the bottle and and it's enormously important and it's going to be done by somebody's now AI I had one experience that does make me a little nervous and I'll just explain it that very very recently, fairly recently. I saw an image in front of my eyes on the screen, and it was me and it was my voice and wearing the kind of clothes I wear. And my wife or my daughter wouldn't have been able to detect any difference. And it was delivering a message. that no way came from me. So it, when you think of the potential for scamming people, if you can reproduce images that I can't even tell, that say I need money, you know, it's your daughter, I've just had a car crash, I need $50,000 wired. I mean, scamming has always been part of the American scene. But this would make me, if I was interested in investing and scamming, it's going to be the growth industry of all time and it's enabled in a way. Now maybe, you know, obviously AI has potential for good things too,
[7:38]
Warrenbut I don't know how you, based on the one I saw recently, I practically would send money to myself over in some crazy country. If you don't live a life where you surround you yourself and limit yourself to people you trust. It won't be much fun. I mean, I literally have been in the position ever since I was in my 20s of being able to have people I trusted around me. And I've been mistakes occasionally. But they filled her out over time. You learn. And when I found Sharma, When I found Charlie, for example, in all kinds of matters, not just investment, you know, I knew I'd have somebody that, well, I'll put it this way, you can think about this. Charlie, in all the years we worked together, not only never once lied to me, ever, but he didn't even shape things so that he told half lies or quarter lies to sort of stack the stacked the deck in the direction he wanted to go. So when you get that in your life, you know, you cherish those people and you sort of forget about the rest. We do not feel uncomfortable in any way, shape, or form, putting our money into Canada. In fact, we're actually looking at one thing now. And, but, you know, they still have to meet our standards on what we get for our money. But they don't have a, they don't have a mental, we don't have any mental blocks about that country.
QuestionerIf you had one more day with Charlie, what would you do with him?
WarrenIt's kind of interesting because, in effect, I did have one more day. I mean, it wasn't a full day or anything, but he, we always lived in a way where we were, a way where we were happy with what we were doing every day. And this, you may find kind of interesting. We had as much fun, perhaps even more to some extent, with things that failed, because then we really had to work and work our way out of them. And in a sense, there's more fun having somebody that's your partner in digging your way out of a foxhole than there is just sitting there and watching an idea that you got 10 years ago just continually produce more and more profits.
QuestionerWhat has changed for Berkshire's operating CEOs since Greg Abel and Ajit Jane became vice chairman? For example, can and do the operating CEOs still reach out to Warren Buffett directly?
WarrenWell, that's, the answer might surprise you, but they overwhelmingly the operating executives, well, they prefer to talk to Gregor, to, to, to, the Jeep. And that's understandable because I don't really do much and I don't operate at the same level of efficiency
[11:36]
Warrenthan I would have 30 years ago or 40 years ago. I don't know the managers as well as I would have when we were smaller. and I could get more accomplished in the day than I can now. And you've got, when you've got somebody like Greg and the Jeep, you know, why subtle for me, basically? So it's worked out extremely well.
QuestionerAs CEO, will Mr. Abel be in charge of the portfolio of common stocks that Mr. Buffett has been managing, or will this function be exercised by Mr. Combs and Mr. Weschler?
WarrenI think the response. I ought to be entirely with Greg. The responsibility has been with me and I farmed out some of it and I used to think differently about how that would be handled. But I think the responsibility should be that of the CEO and whatever that CEO decides may be helpful in effectuating that responsibility. You know, that's up to the him or herds of the side at the time they're running the money. We've sold, A, I was 100% responsible for the Paramount decision. I read speculation that one of either Ted or Todd had some involvement in that. No, it was 100% my decision, and we sold it all, and we lost quite a bit of money, and that happens in this business too. actually owning Paramount made me think even further. I like to think deeper, but I certainly thought harder even about the whole question of what people do with their leisure time and, you know, what the governing principles are of running an entertainment business of any sort, whether it's sports or movies or whatever it might. be. And I think I'm smarter now than I was a year or two, a couple years ago, but I also think I'm poor because I acquired the knowledge in the manner I did. But I just want to be very clear that, that, A, we lost money on Paramount, and B, and I did it all by myself, folks. Thank you very, very much for coming. And I not only hope that you come next year, but I hope I come next year. Thank you.