Warren Buffett warns of natural or human-made ‘megacatastrophe,’ and says our losses will be huge
Record-breaking investor and Berkshire Hathaway CEO Warren Buffett released his yearly letter on Saturday, and in it he warned about the prospect of “The Big One” – a major hurricane, earthquake, or cyber attack that he said “will dwarf hurricanes Katrina and Michael.”
“When such a megacatastrophe strikes, we will get our share of the losses and they will be big – very big,” Buffett wrote.
Although such a disaster could happen tomorrow or decades from now, one thing is sure, he said: the catastrophe is inevitable. Yet Buffett said he had a plan for such an outcome.
“Unlike many other insurers,” he wrote, “we will be looking to add business the next day.” That funding, he said, will come from deferred income taxes, liabilities that Berkshire Hathaway will eventually pay but are currently interest-free….
Emergency preparedness tips for seniors
Natural disasters can strike at any time, and when they do, the damage is often considerable. According to the United Nations Office for Disaster Risk Reduction, between 2005 and 2014 natural disasters caused $1.4 trillion in damage across the globe, affecting 1.7 billion people along the way.
Various preventive measures can protect people and their homes from the potentially devastating impact of natural disasters. For example, oceanfront communities may be able to decrease property damage by exacting certain measures, such as building homes on stilts.
Another way to prevent tragedy related to natural disasters is to develop an emergency preparedness plan before the next storm strikes. That’s important for everyone, but especially so for seniors, many of whom live with mobility issues that can compromise their ability to escape the eye of oncoming storms….