Those who have seen the Motley Fool internet advertisement about what makes Warren Buffett lose sleep at night will be wondering what it is. I can tell you they're talking about driverless cars and the impact that may have on the auto insurance industry. The argument goes that the Berkshire Hathaway owned Geico insurance will be impacted by these cars which are predicted to be commonplace within five years.
Motley Fool then recommend a computer chip maker that makes the type of chip for driverless cars.
A word of caution; while the insurance landscape may well change due to these cars, who is to say the business will be less profitable? Accidents will be fewer, meaning less claims and thus cost to the insurer, but car owners will still need to insure for those accidents that are unavoidable.
Which chip maker will win in the race ahead is anyone's guess, invest carefully and only when you're confident, and the first thing to ignore I'd say, would be scaremongering of the Motley kind.
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