Yahoo Finance Live’s Rachelle Akuffo discusses key takeaways from Berkshire Hathaway’s annual shareholder meeting.

Video Transcript

RACHELLE AKUFFO: All right, let's turn now to the biggest takeaways from Buffett and Munger out of Omaha, Nebraska. The investors taking a critical view on frosty US-China ties with Charlie Munger slamming disputes as stupid, stupid, stupid. He says, "If there's one thing we should do, it's get along with China and have lots of free trade with China," saying it's in our mutual interest.

Improved relations, of course, is said to benefit Berkshire's biggest holdings, tech giant Apple, which continues to rely heavily on manufacturing from China, despite recent moves to start manufacturing in places like India and Vietnam. Apple also, an apt comparison for Berkshire's hesitation on investing in EVs, citing heavy competition that makes it difficult to declare winners just yet.

Well, Warren Buffett saying, "I know where Apple's going to be in 5 or 10 years." This compared to cars, "I don't know what the car companies are going to be in 5 or 10 years." Now even for a company like Tesla, that manages to take the lead. Buffett says fierce competition means winners aren't set to stay winners for long. The quote the auto industry is too tough, he says citing worldwide competitors. It looks like there are winners at any given time, but it doesn't get you a permanent place.

Now, his longtime partner in business, Charlie Munger agrees. Munger cites the cost of building and testing electric vehicles, saying it's imposing huge capital costs and huge risks. And I don't like huge capital costs and huge risks. Now, all this makes autos and industry to avoid investing in just yet according to Berkshire.