"It just won't stop," Buffett added. "People have money in their pocket and they'll pay the higher prices."
Buffett had to defend his decisions over the past year, particularly his reluctance to make an acquisition even as other asset managers had moved to put their cash to work. He said that before the Federal Reserve intervened last March, the company was focused on maintaining and financing its own businesses.
Charlie Munger, Berkshire Hathaway vice-chair, added that it would have been "crazy" to expect an acquisition at the nadir of the crisis.
Buffett warned that the company would continue to struggle to compete on purchases, a persistent theme at recent annual meetings, particularly as other well-funded rivals enter the fray.
Berkshire is also now vying with so-called special purpose acquisition companies as it looks for takeover targets.
"Spacs generally have to spend their money in two years," he said. "If you put a gun to my head and said you have to buy a business in two years, I'd buy one but it wouldn't be much of one."
Charlie Munger on Spacs'I call it fee-driven buying. In other words, they're not buying because it's a good investment. They're buying it because the adviser gets a fee. And of course, the more of that you get, the sillier your civilisation is getting'
Buffett also explained the company's decision to sell its airline stakes last year, a move that has been criticised given the bounceback in the industry's fortunes. He said many of the companies, which included American and Delta, would not have received the same government financing if they were backed by a wealthy shareholder such as Berkshire.
Buffett and Munger were joined on stage by Greg Abel and Ajit Jain, vice-chairmen of Berkshire who have been tipped by shareholders as potential successors to the company's longtime leaders.
But investors hoping for the same special relationship that has characterised Buffett's rapport with Munger over the past six decades will have been left wanting.
"There is no question the relationship Warren has with Charlie is unique and that it cannot be replicated by Greg and me," Jain said.
Buffett on climate change 'People that are on the extremes of both sides are a little nuts. I would hate to have all hydrocarbons banned in three years'
Abel joined Buffett in defending the board's advice that shareholders vote down two stockholder proposals that would push Berkshire to disclose its efforts on climate change and diversity and inclusion in the workforce.
Abel said the company's large energy division that he chairs had already made a strong push to decarbonise its business. He noted that the unit had planned to close 16 coal-fired power plants by 2030 and shutter all such facilities by 2050.
Buffett was more emphatic in his disagreement with the proposal. "It's asinine frankly in my view," he said.
Munger on bitcoin'I hate the bitcoin success. And I don't welcome a currency that's so useful to kidnappers and extortionists and so forth . . . So I think I should say modestly that I think the whole development is disgusting and contrary to the interest of civilisation'
The two proposals won backing from several large investors, including the California Public Employees' Retirement System, asset manager Neuberger Berman and Norges Bank, one of Berkshire's biggest backers. More than a quarter of the votes cast in the election were in favour of the first proposal on climate change disclosures.
However, neither carried enough support to overcome the sway Buffett's high-vote class A stock holds. It was a reminder of who has the power at the $631bn conglomerate.
