Warren Buffett stated that the stability of the financial system should be a priority for the Federal Reserve. The investor said in an interview with CNBC that banks such as JPMorgan are key elements of the economy, generating trillions of dollars every day.
Warren Buffett said he sees signs of fragility in a banking system that is becoming increasingly interconnected with entities outside the banking sector.
“They all influence each other, and problems from one can spill over into the other,” Buffett said.
Investors are concerned about a series of recent meltdowns in credit markets that have raised concerns about mounting risks on the balance sheets of banks and private credit funds, writes Bloomberg.
Buffett said that if panic breaks out in the markets, many investors will likely decide to withdraw from their investments.
Warren Buffett” I sold Apple too early
The investor said he sold Apple too early and would buy more shares, although not in the current market conditions.
“I sold them too early. But I bought them even earlier, so…” Buffett said in an interview on Tuesday.
The Berkshire Hathaway conglomerate reduced its stake in Apple to $61.96 billion. late last year, according to InsiderScore.
Buffett, however, said he would continue to add to his position if the stock becomes cheaper. He added that the iPhone maker is not yet attractive, even though it is down more than 14 percent. since its last peak and by over 6 percent. this month. This comes amid turmoil in the broader market, with both the Dow Jones Industrial Average and Nasdaq Composite undergoing a correction.
Warren Buffett – the Oracle of Omaha
Warren Buffett, called the “Oracle of Omaha”, is one of the most recognizable investors in the world.
Buffett, 95, recently stepped down as CEO of Berkshire Hathaway, a trillion-dollar conglomerate whose businesses include insurance, utilities, railroads, energy and consumer goods. The company has also long invested in banks, including American Express Co.
Warren Buffett said Tuesday that he remains closely involved in Berkshire's investment decisions even after stepping down as CEO, adding that he recently made a “minor” new purchase.
In Tuesday's interview, the investor also announced that he was bringing back his famous charity lunch.
Source: CNBC, Bloomberg
