Buffett Bullish on Healthcare, Leery of Cyber
Berkshire Hathaway Inc. Chairman and Chief Executive Officer Warren Buffett said his company, Amazon, and JPMorgan Chase & Co. are making “a lot of progress” on an independent health care company for employees. Speaking during Berkshire Hathaway’s annual meeting, Buffett said he is motivated by a desire to improve medical care services and cost.
The three companies announced their joint effort in January, saying in a statement that an initial focus on technology will enable the three companies to offer “simplified, high-quality and transparent health care at a reasonable cost” for U.S. employees and their families.
Also of note during Berkshire’s annual meeting:
Buffett said GEICO is “a jewel,” on track to grow profitably. Concerning whether small business insurance can be run on a GEICO-type model, Buffett said many companies are trying. “Anything that takes cost out of the system and makes it easy for the customer” will work in business, he said.
Buffett said he’s leery of cyber coverage because of the unknown nature of what is a new product. Berkshire doesn’t want to be a top-three cyber insurer because of the potential for large losses, he said. “I don’t think we or anybody else really knows what they’re doing when writing cyber insurance. We don’t want to be a pioneer on this.” Watch Video