Buffett and Ajit Jain explain why they're staying away from hot cybersecurity insurance industry

Berkshire Hathaway Chairman and CEO Warren Buffett presides over the 2024 Berkshire Hathaway annual meeting. Buffett and Ajit Jain, director and vice chairman-insurance operations, respond to an audience about whether Berkshire will enter the cybersecurity business. Watch the full coverage of Berkshire Hathaway annual shareholders meeting on www.cnbc.com/.
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[@Muricans1776]

Ajit’s no nonsense…. Basically said we don’t need the risk as the reward is too small….

[@Endurator]

I do cybersecurity, the risk is high and can’t quantified, we can only do our best to reduce the cybersecurity risks and be prepared for threats and attacks. It’s so complicated and nothing is really secure. Public trading companies are required to to buy cyber insurance

[@M.-.D]

This was timely #Crowdstrike

[@rainerbuechse6923]

This is an excellent demonstration of Berkshire‘s investment philosophy. It is based on simple, logical reasoning. Other companies would produce squaremiles of Excel spreadsheets to come to the same conclusion and then still act foolishly based on greed.

[@PeterStup]

Great summary, always think that taking the simple approach is even more effective, if it works simply why complicate it, so yeah

[@Teamshmo]

Very interesting points. The fact their is no end to the payouts make it beyond high risk

[@a120068020]

Well reasoned. On the client side, I, having the pain of a £500k claim for a flooding of my company (tidal surge) and knowing the hoops I had to jump through to get the payout on something that was very easy to measure and record, imagine what the insurance companies would do when considering something complex like a cybersecurity incident. No thanks, I will do best practice and keep my money for more innovation. As a friend who used to be my insurance broker told me "always protect yourself as if you were uninsured", which I try to with property, public and employee liability but in the case of cyber insurance I am uninsured.

[@ChristopherMerrill-g8n]

Anyone listening this after crowd strike?

[@M.-.D]

Yes sir.

[@alvarohigino]

Me.

[@theroqueone]

Which company written cover for crowdstrike :D

[@bomboatomico4563]

just not the same without charlie!

[@கோபிசுதாகர்]

Is ajit jain from india?

[@MK-fu3jp]

yes

[@MRT-co1sd]

If he can talk and convince the Anglo Saxons then he is from India

[@bsjddjk]

yes

[@3dandelion]

yes & he’s a hell of a lot of smarter than the average person. A lot more vision too.

[@yinghanfu9047]

So many financial catastrophes happened because people assumed independence and normal distribution.

[@heyflo1]

I'm in this field and I can tell you they underestimate the risk of AI breaches, AI being trained to do some weird stuff, securing models, securing training datas, etc... Not to mention that it empowers the already powerful hackers to do more. So it's not something to take lightly.

[@drek273]

How are they underestimating the risk if they literally said they don’t want to be involved at all in any capacity. Use your head bro

[@shankarbalakrishnan2360]

Japan is down by 2200 points 6% from a neverending saga to an ending saga❤❤🎉🎉

[@manonamission2000]

Warren "Occam" Buffett

[@mazhjoketighralesh9612]

will work hard ��every day, forcing myself to respond to the resolution I want. I will succeed in life

[@LamarPassmore]

Protection sells, as long as there is fear mongering then there's money to be made. You have Iran, North Korea, Russia and China out there so the sales for security/protection is big business. Now if the defense and intelligence community decides they won't proceed with their imperialism then get rid of your stakes in the industries but until then invest heavily.

[@hillbilly4333]

ajit aint greedy.

[@animalspirit77]

Interesting fact: Ajit Means invincible in Hindi

[@eddylauterback1312]

Ajit has lost weight. Look at shirt collar.

[@platoscavealum902]

🎰

[@supernotnatural]

They have no idea how it works. They dont admit it and make excuses

[@gideonk123]

If you think so, why not open an insurance company specializing in cyber security, and try to reap all the profit they supposedly left on the table?

[@alexanderbSpeaker]

Basically the guy on the right said just something to be said

[@gideonk123]

On the contrary, he spoke wise words. Listen again

[@Chryeon]

Basically Berkshire prefer conventional business , old industry and the hardware side of the tech business such as Apple...next CEO will pivot to Crypto?? Maybe😂

[@slapjuice]

without Buffet there is no Berkshire. Munger has left, buffet is soon. Sell the holidng you have.

[@phrime5627]

You cant even spell Buffett. Just dont speak noone cares

[@slapjuice]

@@phrime5627 so? you cared enough to respond. They should care, he's the magic sauce and you're an idiot.