Abel: Patience Needed in Fast Technology Transformation, Hold Cash, Forego Suboptimal Opportunities, and Time the Market

BlockBeats News, May 2nd: During the Berkshire Hathaway Shareholders Meeting, CEO Abel responded to a shareholder question, "As a young investor facing uncertainty and rapid technological change, it is often difficult to find a balance between patience and action. How do you personally differentiate between the two?"

Abel replied: One of Berkshire's greatest advantages is patience and discipline in capital allocation. Opportunities will arise over time. The same goes for you. This does not mean there are no opportunities now, nor does it mean you have to deploy all your capital or spend all your money right now.

Berkshire recognizes that our cash and U.S. Treasuries are a significant asset, presenting a huge opportunity. First and foremost, we must have a deep understanding of what we are investing in. Compared to technological evolution and rapid changes, what is more important is whether you understand the business? Do you understand the opportunity? More importantly, do you understand the risks involved?

Secondly, it is necessary to have a very clear view of the future economic outlook — the outlook for the next 5 to 10 years and approach this opportunity from a long-term perspective. Furthermore, Berkshire intends to hold these investments forever. Capital always comes first. Berkshire will not rush to invest in suboptimal opportunities. We want it to be consistent with our principles. Then, as I mentioned earlier, we will act decisively, move quickly, and deploy significant capital.