Highlights of the 2019 Berkshire Hathaway Shareholder Meeting
Known as the "Oracle of Omaha" for his track record of picking winning investments, Buffett was joined by his right man Charlie Munger, vice president of Berkshire. The duo shared their indescribable views on their company, financial markets, economy, politics, corporate governance.
Their comments in the short term have been known to move markets. Their long-term insight has earned wealth for investors.
<h2 class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "19459009" "I am a card-carrying capitalist" "data response = "18"> "I am a card-carrying capitalist"
Buffett wants to make it clear where he stands for economic politics.
<p class = "canvas-atom clay text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" " I am a card-carrying capitalist, " he said. "I think we would not sit here except for the market system and the law of something embodied in that country." "Data-React =" 20 ">" I am a card-carrying capitalist, "he said." I think we would not sit here except the market system and the law of some things embodied in this country. "
This comes as socialist political proposals have been gaining support from far to left
<p class = "canvas-atom clay text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "While Buffett has historically supported & nbsp; Democratic presidential candidates he does not believe the pendulum will actually swing so far. "data-reactid =" 22 "> Buffett has historically supported democratic presidential candidates, but he doesn't think the pendulum will swing so far.
" I don't think the country will enter into socialism in 2020 or 2040 or 2060, Buffett says.
Berkshire Hathaway Chairman and CEO Warren Buffett, left and vice president Charlie Munger presides over the annual Berkshire Hathaway shareholder meeting in Omaha, Neb., Saturday 4 May 2019. (AP Photo / Nati Harnik)
"I think we are all in favor of some kind of public social security net in a land as prosperous as ours, "added Munger. "What many of us do not like is the great stupidity that parts of the social security net are managed by the government."
<p class = "canvas-textile textile Mb (1.0em) Mb 0) – sm Mt (0.8 em) – sm "type =" text "content =" [ Read more: Warren Buffett: I am a "short-haired capitalist", rejecting American embrace of socialism } "data response = "45"> [ Read more: Warren Buffett: I am a "cardinal capitalist", rejecting American embrace of socialism }
<h2 class = "canvas-atom canvas-text Mb ( 1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Buy Amazon was a "data-reactid =" 46 "> Purchase of Amazon was a "value" bet
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) Buffett revealed to CNBC's Becky Quick that Berkshire had assembled a new position in Amazon at Thursday before the meeting. & nbsp; ( AMZ N ). He attributed the purchase to "one of the friends in the office who manages money." In other words, the decision was made by Todd Combs or Ted Weschler. "Data Reaktime =" 47 "> On Thursday in front of the meeting, Buffett revealed to CNBC's Becky Quick that Berkshire had gathered a new position in the Amazon (AMZN). He attributed the purchase to" one of the friends in the office managing money. " words were the decision taken by Todd Combs or Ted Weschler.
<p class = "canvas-atom lerret text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " This was a disturbing development for some Buffett observers & nbsp; who believe that the Amazon share is closer to the top than the bottom. "Data Reaction =" 48 "> This was a disturbing development for some Buffett observers who believe that the Amazon share is closer to the top than the bottom.
During the meeting, an investor asked how" worthy investors "like Buffett, Combs and Weschler could support su
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" It is interesting that the term value investment came up because I can assure you both managers – and one of them bought some Amazon shares in the last quarter – he is a value investor, " Buffett said ." data-reactid = "50"> "It's interesting that the term value investment came up because I can assure you both managers – and one of them bought some Amazon shares in the quarter – he is a value investor, "Buffett said." 19659019] "The two people, one of whom invested in Amazon, they looking at hundreds of securities, "he added." Because they manage less money in their universe, they are looking for Things they feel they understand What will be developed by that business between now and the day of judgment. "
Buffett further claimed that all invested" value invests. "
<p class =" canvas-textile textile Mb (1.0em) Mb Warren Buffett defends Berkshire's stock purchase as "value investing" ] . ] Warren Buffett defends Berkshire's Amazon share purchase as & # 39; value investing & # 39; ]
<h2 cla ss = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Til Defense for Wells Fargo leadership <19459017] <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) -" -sm "type =" text "content = "Wells Fargo continues to recover its fake account scandal that the world first learned about in September 2016. The bank admitted that employees had created millions of accounts for clients without their permission." Wells Fargo continues to recover from its fake account scandal. as the world first learned about in September 2016. The bank admitted that employees had created millions of accounts for customers without their permission.
Wells & # 39; woes led to the resignation of CEO John Stumpf in 2016 and recently, Tim Sloan in 2019, who took over Stumpf.
Someone has called for Prison Wells & # 39; top executives includi ng CEOs. Buffett and Munger disagree.
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" It seems that Wells made some big mistakes in what they incentivized, " Buffett said ." I've seen it in many places. It was obviously at Wells. To the extent that they set up false accounts, a couple of millions of those who had no balance in them, could not have been profitable for Wells. "" data-response time = "58"> "It seems that Wells made some big mistakes in what they incentivized," Buffett said. "I've seen it in many places. It was obviously on Wells. To the extent they created false accounts, a couple of millions of those who had no balance in them, who might not have been profitable for Wells."
While top managers were responsible for incentives, they should not be responsible for the actions these incentives stimulate, Buffett argues and Munger argues.
"I don't think people should go to jail for honest judgments. It's bad enough to lose your job," said Munger. "I want Tim Sloan still there."
<p class = "canvas atomic text Mb (1.0em) Mb (0) – sm mt (0.8em) – sm" type = "text" content = " [ [ [Readmore:WarrenBuffettandCharlieManagerDefendWellsFargo'sdisgracedCEOs] "data-reactid =" 65 "> [ Read more: Warren Buffett and Charlie Munger defend Wells Fargo's disgraced CEOs [19659015]]
<h2 class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm mt (0.8em) – sm" type = Berkshire's volatile earnings and growing cash herd
The meeting started with Buffett
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "First and foremost, Buffett & nbsp ; decried a new accounting rule that has rooted Berkshire's net earnings . Specifically, the rule forces companies to mark the market value of their equity portfolios, and the Berkshire portfolio is massive, which has caused willing fluctuations in income. "Data Reaction Time =" 68 "> Buffett has first and foremost agreed to a new accounting rule that has taken root in Berkshire's net revenues, particularly governmental companies to mark the market value of their equity portfolios. And the Berkshire portfolio is massive, which has caused would fluctuate "The bottom line figures are going to be whimsical," he said. "What I'm worried about is the interpretation … I just hope nobody gets misled. "
Berkshire therefore reported modest growth in quarterly revenues.
Berkshire Hathaway's Many Companies
Second, Buffett and Munger addressed During the first quarter, Berkshire repurchased NOK 1.7 billion in Class A and B shares, as the M&A options remain unattractive.
"We will probably be more liberal when it comes to to buy back shares, "Munger said.
<p class =" canvas-atom clay text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" "I In the coming years, we hope to move much of our excess liquidity to businesses that Berkshire will permanently own, "Buffett said in his" 19459067 "2018 letter to shareholders . "However, the immediate outlook for that is not good: prices are high for businesses that have decent long-term prospects." "Data-React =" 93 ">" In the coming years, we hope to move much of our Excess liquidity to businesses that Berkshire will permanently own, "said Buffett in a 2018 letter to shareholders. "However, the immediate prospects for that are not good: the prices are high for companies that have decent long-term prospects."
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "For now, & nbsp; Berkshire Cash Hoard continues to grow . At the end of the first quarter, the company sits at $ 114.2 billion, up from $ 111.9 billion at the end of the fourth quarter. "Data Reaction =" 94 "> Currently Berkshire's cash hoard continues to grow. At the end of Q1, the company sits at $ 114.2 billion, up from $ 111.9 billion at the end of the fourth quarter.
"We are absolutely willing to spend $ 100 billion [on buybacks]", says Buffett, Berkshire's market value should fall below intrinsic value.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " [ Read more : Warren Buffett reckons accounting changes that have made a mess of Berkshire's earnings ] "data-reactid =" 96 "> [ [Readmore:WarrenBuffett'sdecoratingaccountingregulator'srotatableBerkshireearnings]
]
2019 Berkshire Hathaway Shareholder Meeting
<h2 class = "canvas-atom canvas text Mb (1.0 em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Coca-Cola and cannabis "data-reaction time =" 108 "> Coca-Cola and cannabis
<p class = "canvas text" 0) – sm Mt (0.8em) – sm "type =" text "content =" On Friday, Buffett and Munger shared some thoughts about marijuana & nbsp; in response to a question from Fox Business Community Liz Claman. "Data-React =" 109 "> On Friday, Buffett and Munger shared some thoughts on marijuana in response to a Liz Claman question from Fox Business Network.
<p class =" Canvas text There is a mistake for Coca-Cola ( KO ) to get it into the marijuana – cannabis business ", they told Claman ." They have a healthy image and it would be detrimental to it . "" It would be a mistake for Coca-Cola (KO) to enter the marijuana cannabis business, "they told Claman ." They have a healthy image, and it will be detrimental to it. "
" "Our leader and CEO, James Quincey, has repeatedly said that we do not intend to enter this room," said Coca-Cola spokesman Yahoo Finance.
Coca-Cola is undoubtedly the most successful investment that Berkshire has ever made.
<h2 class = "canvas-atom canvas text Mb (1.0em) Mb) – sm Mt (0.8em) – sm" type = "text" content = " It all began with a" monumental stupid decision " "data-response time =" 113 "> all began with a" monumental stupid decision "
<p class =" canvas-atom clay text Mb (1.0em) Mb (0) – sm Mt (0.8 em) – sm "type =" text "content =" Buffett, 88, first invested in a Berkshire Hathaway, a failing textile company, & nbsp; back in December 1962 accumulates 7% of the company at 7.50 The company is owned by a man named Seabury Stanton, who in 1964 asked Buffett about the price he would be willing to sell his stake in. Buffett, 88, first invested in a Berkshire Hathaway, a failing textile company, back in December 1962 and collects 7% of the company at $ 7.50 per share.The company is owned by a man named Seabury Stanton, who in 1964 asked Buffett about the price he would be willing to sell e its efforts. Buffett said $ 11.50 and they had a deal.
But Stanton later turned around and Buffett didn't care about the behavior, so he ended up hanging on.
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – Mt Mt (0.8em) – sm" type = "text" content = "" It was a monumental stupid decision, "Buffett said. in his letter to shareholders in his letter, "Annoyed by Stanton's chisel, I ignored his offer and began to aggressively buy more Berkshire shares." "That was a monumental stupid decision," Buffett said in his letter to shareholders in 2014. "Annoyed by Stanton's chisel, I ignored his offer and began aggressively buying more Berkshire shares. "
Buffett took control of the company in May 1965. And it was followed by another two decades of tough lessons.
" Within 18 years of 1966, we struggled unmanned with the textile business, all to no avail, " he." But stubbornness – stupidity – has its limits. In 1985, I finally threw in the towel and closed the operation. "
Despite his great success and status, Buffetts career is riddled with failures. Finally, his real triumph is learning from his mistakes and finally sealed the legacy as the world's largest investor.
<p class =" canvas- atom canvas-text Mb (1.0em) Mb (0) – -M Mt (0.8em) – sm "type =" text "content =" Furthermore, Buffett has shared his lessons with the audience through lessons, interviews, meetings and TV shows so they can become better investors themselves. So while many know him as a great investor, many will also remember him as a great teacher . "Data-React =" 120 "> Moreover, through letters, interviews, meetings and TV-Buffett, their lessons have shared with the public so that they can be better investors themselves, so while many know him as a big investor, there are many who will also remember him as a great teacher.
