Dear Opportunistic Investor,
Admitting fear is difficult.
So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.
This past May, The Motley Fool sent eight of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video.
Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."
That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend, as have Tesla.
Indeed, Buffett should be nervous… especially with KPMG advising the "revolutionary change" is coming much "sooner than you think."
For Buffett, it couldn't have come at a worse time.
In June 2015, the 'Oracle of Omaha' dumped no less than $500 million into Insurance Australia Group Ltd (ASX: IAG) stock, snapping up 3.7% of the business in the process.
Much of Buffett's fortune has been made from auto insurance – an industry that most thought would survive the test of time.
But I'm no longer convinced, and neither is he.
Experts are now suggesting that driverless cars could be on our roads within a decade.
It's an exciting development and one that could significantly reduce vehicular accidents. Eliminate the driver, you eliminate the risk of human error.
Speaking at a conference in March, Buffett said, "If you could come up with anything involved in driving that cut accidents by 30 percent, 40 percent, 50 percent, that would be wonderful."
But from a business perspective?
Buffett added, "But we would not be holding a party at our insurance company."
If driverless cars were to cut accidents by 50%, the value of Buffett's investment in IAG could also be cut in half, costing him millions.
Here at The Motley Fool, we think we've found two companies that would be much better bets for Buffett in the long-term.
Better yet, we're giving away the names of those two ASX companies so you can buy before Buffett even gets the chance. He's already said he'll return cashed-up to Australian shores in the near-future, so now's your chance to beat him at his own game.
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