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Buffett: Connecting the Creative Destruction Dots of Driverless Cars

Buffett: Connecting the Creative Destruction Dots of Driverless Cars

 

We continue to hear more and more about the potential for self-driving cars, which falls into our Disruptive Technology investing theme, but has implications across our Connected Society, Aging of the Population and other themes as well. Even the Oracle of Omaha, Warren Buffett lamented on the disruption to be had when self-driving cars and trucks go from initial launch to mainstream —

“Driverless trucks are a lot more of a threat than an opportunity to Burlington Northern.”

 

“Autonomous vehicles, widespread, would hurt us if they spread to trucks, and they would hurt our auto insurance business. They may be a long way off. That will depend on experience in the first early months of the introduction. If they make the world safer, it will be a very good thing but it won’t be a good thing for auto insurers.”

 

 We appreciate Buffett’s connected the dots on this, and sharing his view on the creative destruction to be had when this Disruptive Technology takes hold. It’s poised to cause problems for more than just Uber, and offer opportunities to companies ranging from Amazon (AMZN) to JB Hunt Transportation (JBHT) and Ryder Systems (R).

Source: How Self-Driving Cars Could End Uber – WSJ

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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