Warren & Charlie @BERKSHIRE HATHAWAY AGM 2022
It was on April 30th, 2022 that my guru Warren Buffett held the Annual General Meeting of his company Berkshire Hathaway for the year 2022…
As usual it was a jam-packed event with a few thousand attendees …now its been a yearly ritual for me to attend the Berkshire AGM Live physically for which I travel every year all the way to Omaha, Nebraska to US that is until before covid…the last meeting I attended was in 2019 …Unfortunately because of Covid last two years the meeting was not held physically but only online…
It was only this year in 2022 that it was again held physically…Unfortunately I couldn’t attend the meeting physically but attended it online Live yesterday…
Here is the brief Summary of the Wisdom shared by Warren Buffet & his partner Charlie Munger in yesterdays Berkshire Hathaway AGM…
Before I dig deeper & share the Investing Wisdom that Warren & Charlie shared yesterday in there 5 hours Q&A session with BERKSHIRE Shareholders, let me give a brief background on what this Annual event is all about…
So every year around April-May Investment Guru Warren Buffett holds the AGM of his company Berkshire Hathaway in his home town Omaha, Nebraska in USA where anywhere between 30,000 to 50,000 Shareholders from across the World attend…Most of these Shareholders are Investment Experts themselves managing Millions if not Billions of dollars for their own clientele; but they are not the only ones who attend this AGM…Students, Teachers, Bizmen whosever is interested in learning about the Art of investing attend this AGM, also known as Woodstock of Capitalist ….
The AGM typically starts @ 9.15 am with a short film followed by Warren Buffett & Charlie Munger arriving on the podium sharp @ 10.30 am & they take Investor Questions till 5 pm ….Anybody can ask any question relating to Investing or Life in general & you can be rest assured that Warren & Charlie will answer your question as detailed as possible.. A couple of years back I too got an opportunity to Question the Sage of Omaha Mr. Warren Buffett & here’s a link to that interaction…
Investment Wisdom from Mr. Buffett (91 years) & Charlie Munger (98 yrs)
On Warren Buffets Long Term Track record
Buffett’s long-term track record keeps getting better
Warren Buffett’s career has been a testament to that the fact that, over the long-term, value investing can produce major gains.
From the start of 1965 through the end of 2021, Warren Buffett’s Berkshire Hathaway gave an average compound annual gain of 20.1% per annum for 65 years, according to the firm’s annual letter. That is nearly double the S&P 500′s 10.5%, including dividends.
Warren Buffett reiterated his skepticism of bitcoin on Saturday, saying he would be unwilling to buy it for even extremely low prices because it produces nothing of value.
“Whether it goes up or down in the next year, or five or 10 years, I don’t know. But the one thing I’m pretty sure of is that it doesn’t produce anything,” Buffett said. “It’s got a magic to it and people have attached magics to lots of things.”
Buffett listed farmland, apartment buildings — and even art — as assets that had more tangible value than bitcoin.
“Assets, to have value, have to deliver something to somebody. And there’s only one currency that’s accepted. You can come up with all kinds of things. We can put up Berkshire coins, put up Berkshire money but in the end, this is money,” he said, holding up a $20 bill. “And there’s no reason in the world why the United States government … is going to let Berkshire money replace theirs.”
On Market Timing
“Should you Time the Market ?
The answer is a strict NO…
Buffett says he has never been ‘good at timing’
Warren Buffett said he has never figured out how to time the markets.
“We haven’t the faintest idea what the stock market was going to do when it opens on Monday,” Buffett said in response to an audience question.
“I don’t think we’ve ever made a decision where either one of us has either said or been thinking we should buy or sell based on what the market is going to do, or for that matter, on what the economy’s going to do. We don’t know,” he continued…
Instead, Buffett adheres to a value investing strategy, or picking stocks with attractive valuations, instead of focusing on the vagaries of the stock market.
“We have not been good at timing,” Buffett said. “We’ve been reasonably good at figuring out when we were getting enough for our money. And we had no idea when we bought anything, but we always hoped it would the down for a while so we could buy more. … I mean, that stuff, you could you could learn in fourth grade.”
On Algo Trading
Charlie Munger said today’s stock market has become “almost a mania of speculation.”
His comment referred to both high frequency algorithmic trading and access new investors have that intensified during the pandemic.
“We have computers with algorithms trading against other computers,” Munger said. “We’ve got people who know nothing about stocks, being advised by stockbrokers who know even less.
On Stock Markets & Speculation
Warren Buffett said – “Sometimes the stock market is quite investment-oriented, and other times it’s almost totally a casino, a gambling parlor — and that existed to an extraordinary degree in the last couple of years, encouraged by Wall Street.”
On Investing outside US
Warren Buffett said Berkshire Hathaway is open to investing in businesses anywhere, not just in the U.S.
“We have so much trouble finding good ideas that we can’t afford to ignore any,” Buffett said. “But they do have to be sizeable.”
Buffett said while he does seek out new investments, he prefers to be approached proactively.
“We’ll pay any price, climb any hills to find businesses, but we actually prefer when they fall into our lap,” Buffett said.
On New forms of Money like Cryptos
Buffett warns shareholders about ‘new forms of money’ and the importance of cash
Warren Buffett warned shareholders about “new forms of money” as he recalled the financial crisis of 2008 and said Berkshire Hathaway will “always have a lot of cash on hand.”
“The United States government affects that this became exchangeable for lawful money in the United States,” Buffett said, displaying an image of an old $20 bill.
On Berkshire’s Fresh Investments
Berkshire bought more than $51 billion of stocks during The First Quarter when US Stock Markets corrected big time..
Remember Buffets most famous Quote..
Be greedy when others are fearful &
Be fearful when others are greedy…
Berkshire bought more than $51 billion worth of stocks during the first quarter’s market turmoil, including sizeable investments in Chevron, HP, Occidental Petro & Activision Blizzard…Together he invested USD 51 billion dollars in above 4 Investments in just one Quarter…
Warren Buffett said :”I’ve been following Allegheny (the stock he recently purchased) for 60 years. I knew we would buy Allegheny at the right price.”
“The markets sometimes are quite investment-oriented. At other times they are a casino Banks make money when people do things and they take a piece of that.”
The S&P 500 suffered a 8.8% sell-off April amid fears of surging inflation and rising rates; Nasdaq is down almost 20%…
On Why he holds a Physical meeting even at this age
“When the two men running your company are 91 and 98, you deserve to see them in person every so often.”
Munger: “It’s hard to tell which of us (Warren or Charlie) is more incompetent on oil.” Ie What Charlie Munger is trying to say here is neither he nor Warren Buffett can predict Oil prices then where’s the case of so called economists trying to predict it…
Buffett: “Nobody knows how much Inflation will be next month, in 10 years or 20. You can get someone to tell you what they believe inflation will be if you pay them enough or if they think it will increase their status. No one knows what inflation will be.
- When Stock markets behave irrationally ie go up or go down, that is the time to act decisively…Warren buffet waited the last two years before finally making a huge 51 billion dollars Investment during last quarter when Stock markets corrected massively…
- Cryptos & bitcoin is just a passing fad & not a good long term investment; its a speculation at best…
- Stop treating Stock Markets like a Casino…Stock markets are places where you can invest in Great Businesses as if you can identify these great businesses & hold them for long term then nobody can stop you from becoming wealthy..
- Stop timing the Markets…If Warren Buffett cannot time the market who are You & I ? A simple solution is to invest in the markets via SIPs in Mutual Funds…
- Buffett & Charlie both clearly stated that neither of them can predict either Inflation or Stock markets or Oil so where’s the question of you & I trying to predict the same…
- Warren Buffett researched a Stock for 60 years (Allegheny) before he purchased it last year…I have nothing to add here…
Invest Wisely & with professional help…