FX.co ★ Warren Buffett envisages 5 main changes for future

1. Newspapers to cease to exist

Warren Buffett strongly believes that printing newspapers and magazines will cease to exist in the near future. He is confident that traditional newspapers and magazines will disappear in the next few years as e-technology advances. Even now many reputable magazines have been digitized. A study conducted by Pew Research Center proved Buffet's forecast. According to the agency, in the period from 2006 to 2016, advertising revenues of the American newspaper market almost declined to $18 billion from the previous $49 billion. Currently, the revenue is declining drastically.

2. Dow Jones Industrial Average to hit 1 million in 100 years

The most successful investor of all time assumes that the Dow Jones Industrial Average will be over 1 million in 100 years. This index is the oldest of the three key indices that reflect the performance of the US stock markets since 1896. Since that time, DJIA has soared from 30 to 30,000 and this is not the limit.

3. Cryptocurrencies destined to inevitable fall

According to experts, Warren Buffett is a long-time opponent of cryptocurrencies, so it is not surprising that he predicts their collapse. "In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending," the chairman and CEO of Berkshire Hathaway said. "Bitcoin is probably rat poison squared," he added. He stresses that cryptocurrencies are not backed by anything. Any transactions involve high risks, and their regulation is extremely difficult. "If you wanna gamble somebody else will come along and pay more money tomorrow, that’s one kind of game. That is not investing." He recommends investing in traditional assets such as bonds or tech stocks.

4. Green energy to be most reliable long-term investment

Mr. Buffet is sure that investments in hydrocarbons are unprofitable since renewable energy will be in high demand in the near future. In 2020, Berkshire Hathaway invested more than $15 billion in projects related to solar and wind energy. Last summer, Berkshire Hathaway acquired a stake in Dominion Energy, a natural gas transportation and storage company. The transaction amount exceeded $10 billion. The US Environmental Protection Agency agrees with Buffet as it has calculated that by 2030, more than 50% of the country's energy will come from renewable sources.

5. AI good for economy but enormously disruptive for labor market

The legendary investor also pays attention to the development and implementation of artificial intelligence (AI). Buffett supposes that AI will have a devastating impact on the labor market. At the same time, the US economy will benefit from the use of AI technology. Analysts at PwC think that by 2030, about 40% of jobs in the United States will be replaced by neural networks. However, Buffett does not consider these predictions to be the indisputable truth. He is sure that people create their own future.