But ends up telling shareholders it should not be on their list of worries.
In a letter to shareholders, Warren Buffett dismissed the possibility that climate change could prove a big risk to Berkshire Hathaway’s insurance business.
Here are a few excerpts from that letter, which was released on Saturday:
“It seems highly likely to me that climate change poses a major problem for the planet,” Buffet wrote. “I say ‘highly likely’ rather than ‘certain’ because I have no scientific aptitude and remember well the dire predictions of most ‘experts’ about Y2K.
“It’s understandable that a shareholder) might believe Berkshire is especially threatened by climate change because we are a huge insurer,” Buffet continued. “…such worries might, in fact, be warranted if we wrote ten- or twenty-year policies at fixed prices. But insurance policies are customarily written for one year and repriced annually to reflect changing exposures.”
“Up to now, climate change has not produced more frequent nor more costly hurricanes nor other weather- related events covered by insurance.
“As a citizen, you may understandably find climate change keeping you up nights. As a homeowner in a low-lying area, you may wish to consider moving. But when you are thinking only as a shareholder of a major insurer, climate change should not be on your list of worries.”
See pages 25-26 of Warren Buffet’s annual meeting report re climate change:
Thanks to Kurt Strom for this link