This might seem like the worst idea that anyone has ever tried to sell to Berkshire. However, this speculation makes a lot more sense than it seems at first glance. Let’s see:
Regret
During Berkshire’s annual meeting, Warren Buffet has acknowledged regret by having missed on the Google (GOOGL) and Amazon (AMZN). All his talk about staying within the circle of competence has suddenly vanished. In my opinion, Buffet didn’t miss it, he just remained skeptical about the profound effects that the internet could really have on traditional sectors like retail. And when the effects became clear, it was too late.
The opportunity
In my view, the internet has brought more innovation opportunities than people realize. For instance, it opened the doors to artificial intelligence. Most internet companies like Google and Amazon are now AI companies. Basically, they found a way to leverage their network and server infrastructure constructed for their initial businesses (indexing information and selling books).
Following this line of reasoning, the next step will be automation. The logic is simple, if Amazon wants to make your buying experience seamless, then the way the goods are delivered must be revolutionized, for instance, so you can get same day delivery.
That is just an example of how current innovation (Amazon online shopping) might be pushing further innovation (automated delivery). This might not the be exactly how things will develop, but, nevertheless, we can expect these innovations to spill over to several economic sectors.
Status quo fall down
The current tech wave will have an impact on several other sectors, as the internet had on retail. AI applied to cars will change the way people interact with cars. Ironically, it will also change the ways car are built. Factories will become more and more automated (just like the cars) and advanced manufacturing will be a critical competence in several industries.
Coincidentally, energy sources are already changing towards renewables, with solar being the most promising tech. This means that there are two revolutions developing at once in the auto industry.
