Abel: Maintain patience during rapid technological changes, hold cash, forgo suboptimal opportunities, and time the re-entry into major positions.

BlockBeats News, May 2nd, at the Berkshire Hathaway Annual Shareholders Meeting, CEO Abel responded to a shareholder question: “As a young investor operating in an environment of uncertainty and rapid technological change, it’s often difficult to balance patience and action. How do you personally distinguish between the two?”

Abel stated: One of Berkshire’s greatest strengths is patience, as well as discipline in allocating capital. Opportunities will arise over time. The same applies to you. This doesn’t mean there are no opportunities now, nor does it mean you must deploy all your capital or spend all your money right now.

Berkshire recognizes that our cash and U.S. Treasuries are significant assets—they represent a huge opportunity. First, we must understand very well what we are investing in. Compared to technological evolution and rapid change, what’s more important is whether we understand the business? Do we understand this opportunity? Even more importantly, do we understand the risks involved?

Secondly, we need a very clear view of the economic outlook for the future—the prospects for the next 5 to 10 years must be viewed from a long-term perspective on where this opportunity is heading. Furthermore: Berkshire plans to hold these investments forever. Capital always comes first. Berkshire will not rush to invest capital into suboptimal opportunities. We want them to align with our principles. Then, as I mentioned before, we will act decisively, move quickly, and invest substantial capital.