ThePanelist.com - Berkshire Hathaway on Global Warming

Berkshire Hathaway on Global Warming

Written by David Neubert

Saturday, 05 May 2007

In responding to a shareholder question on climate change, Buffett says global warming won't affect results at General Re. But both Warren Buffett and Charlie Munger offer interesting perspectives that do not agree.

Mr. Buffet acknowledges that global warming is happening. He does think that the exposure to National Indemnitiy increases every year. Natural disasters seem to be increasing from the warming of the oceans, but he also says, "We are cautious about it. It doesn't keep me up at night with respect to our financial results, but every citizen should be concerned. Insurance rates are going up and we, the insurance underwriters, are concerned with the phenomena."

Mr. Munger says that Carbon Dioxide is what plants eat. And that he does like it a little warmer than colder. Charlie Munger goes on to say about climate change, "So what we are really talking about with global warming is dislocation. Dislocations could cause agony though. The sea level rising would be resolved with enough time and enough capital. I don't think it's an utter calamity for mankind though. You'd have to be a pot-smoking journalism student to think that."