Warren Buffett's AGM is described as "Woodstock for capitalists" by NPR.org. In a neat, closed economy, his investors have the opportunity to buy the products of the thousands of companies Berkshire Hathaway invest in. The guy knows how to make money, so his words on future reinsurance rates are worth hearing. As are those of his vice chairman, Charlie Munger, on counter-productive low-energy-yield corn-ethanol.
Berkshire Hathaway chief Warren Buffett and vice chairman Charlie Munger had plenty to say about energy and climate change at the company’s annual meeting this weekend.
Buffett, whose holdings include the General Re reinsurance business, said global warming had increased the likelihood of hurricane damage, meaning his company would have to charge more for hurricane insurance. ” It would be crazy to offer catastrophe reinsurance at the same rate in 2007 as we did in 2006,” he said.
Munger, meanwhile, spoke ill of corn-based ethanol, heresy in Berkshire Hathaway’s home town of Omaha, Neb. “I think running automobiles on corn is one of the dumbest ideas,” said Omaha native Munger, according to this MarketBeat post by Karen Richardson. “I love Nebraska to my core, but it’s not my home state’s finest moment,” he said.