Buffett faults handling of bank failures, upbeat on U.S., Berkshire

US business magnate, investor and philanthropist Warren Buffett on Saturday criticized the handling of recent tumult in the banking sector and said a debt ceiling showdown could bring "turmoil" to the financial system, even as he offered a vote of confidence in the United States and his conglomerate Berkshire Hathaway Inc (BRKa.N).

Speaking at Berkshire's annual shareholder meeting, the Tycoon criticized how politicians, regulators and the press have handled the recent failures of Silicon Valley Bank (SVB), Signature Bank and First Republic Bank, saying their "very poor" messaging has unnecessarily frightened depositors, Reuters reports.

"Fear is contagious," he said, adding that "you can't run an economy" when people worry if their money is safe in banks.

Buffett also warned of a growing "tribalism" in Washington where partisanship causes people to talk past each other.

"We have to refine, in a certain way, our democracy as we go along. But if I still had a choice, I would want to be born in the United States. It is a better world than we've ever had."

Buffett spoke hours after Berkshire posted a $35.5 billion quarterly profit and said it bought back $4.4 billion of its own stock, a sign it considered the shares undervalued.

In contrast, it sold $13.3 billion of other companies' stocks, in a quarter where the S&P 500 Index (.SPX) rose 7%.

The world's sixth-richest person, Buffett has since 1965 run Berkshire, whose dozens of businesses include Geico car insurance, the BNSF railroad and consumer names such as Dairy Queen and Fruit of the Loom.

Berkshire also owns $328 billion of stocks, close to half in Apple Inc (AAPL.O).

The meeting featured Buffett, 92, who is Berkshire's chairman and chief executive, and Vice Chairman Charlie Munger, 99, answering five hours of shareholder questions. Vice Chairmen Greg Abel, 60, and Ajit Jain, 71, joined in the morning.

Buffett reiterated on Saturday that Abel would succeed him as CEO, while adding he had no plan if Abel could not.