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Warren Buffett is one of the most famous investors in the world. He retains the 4th line in the ranking of the richest people according to Forbes, despite the heavy losses due to the pandemic. What, according to the entrepreneur, awaits us in the future?
To this, Buffett, who at one time received the nickname “Oracle of Omaha” from journalists, has his own answers.
1. Most newspapers will close
The collapse of paper media Buffett, who worked as a paperboy as a child, has repeatedly predicted. In an interview with Yahoo Finance, he explained why the paper will leave the media market forever:
“The newspaper with the most pages used to win. Because these pages were filled with ads, and advertising, from the point of view of the reader, is the best content that the editors can offer. Do you want to find a job? You open the newspaper and look at the ads. Previously, you learned about the latest events the next morning from the newspaper, and now you watch them in real time. [one]
According to the Pew Research Center, from 2006 to 2016, the advertising revenue of the American newspaper market has almost tripled – from $49 billion to $18 billion – and continues to decline.
2. In the next 100 years, the Dow Jones will reach 1 million points
The Dow Jones Industrial Average (DJIA) is the oldest of the three key stock indices that reflect the development of US stock markets. Created by The Wall Street Journal editor Charles Dow and launched in 1896. Since then, the index has risen from 30 to 30 points.
The investor predicted that in 100 years the Dow Jones index would exceed 1 million points, and the US would be financially prosperous.
“However, I have no illusions that I can’t find such prosperity,” joked Buffett, who turned 2020 in 90.
3. Cryptocurrencies are in for an inevitable crash
Buffett is a well-known opponent of cryptocurrencies, he predicted their collapse more than once.
“I can almost say with complete certainty that cryptocurrencies are going to collapse,” Buffett told CNBC, emphasizing that he would be happy to invest in any of the major currencies if he were not sure that in the future they would not be worth a cent. .
Shortly thereafter, cryptocurrency quotes began to plummet, and six months later, in May 2018, a Fox Business reporter reminded Buffett of the words of his Berkshire Hathaway fund colleague Charlie Munger that “Bitcoin is rat poison.” To which Buffett replied:
“Well, now bitcoin is probably rat poison squared.” [2]
The billionaire later clarified his point of view. According to the investor, unlike traditional ones, cryptocurrencies basically “have nothing, are not based on production and do not produce anything themselves.” Cryptocurrencies are not capable of being reproduced, and their circulation is not guaranteed.
At the same time, Buffett considers blockchain technology to be “outstanding”, but imperfect, therefore, he recommends investing more in traditional assets like shares of industrial enterprises – anyway, in 10-20 years, no one will remember bitcoin, the investor is sure.
At the time of publication of the material, the cost of bitcoin exceeds $45 thousand. Since the fall of 2020, the cryptocurrency has been experiencing an explosive growth in value – over the past four months, only bitcoin has quadrupled in price.
4. The future is in renewable energy sources
“If you keep money in coal, then you are in big trouble,” Buffett said in May 2017, expressing his willingness to support green energy projects.
In June 2020, Buffett announced that his company Berkshire Hathaway had already invested a total of more than $15 billion in solar and wind energy, and in July it became known that it had bought a stake in Dominion Energy, a natural gas transportation and storage company. The deal amounted to more than $10 billion.
The US Environmental Protection Agency has predicted that more than half of the country’s energy in 2030 will come from renewable sources, and it looks like Buffett is going to speed up the transition.
5. The introduction of AI will make the economy more efficient, but will dramatically increase unemployment
Buffett expressed his expectations for the future of artificial intelligence in 2017.
“Advanced AI can have a very disruptive effect on the labor market. However, the advantage is that this problem can be solved by radically transforming the relationship of society and the state and people with each other.” [3]
Investor expectations are shared by analysts. By 2030, PwC estimates that 40% of jobs will be replaced by neural networks.
However, Buffett himself advises not to trust predictions too much. In an interview, he said: “Predictions say a lot about the predictor. But nothing about the future. The future, after all, we make ourselves.
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