What learning warren buffet shared with his investors in AGM?

What learning warren buffet shared with his investors in AGM?

The legendary investor Warren Buffett is unlikely to go unnoticed, regardless of whether you're interested in investing. Buffett isn't just a successful investor and manager. He's also a virtual university for investment knowledge. Value investors can learn a ton from his annual report and his company's annual meeting, Berkshire Hathaway.

Investors gather to hear the veteran investors' opinions on topics ranging from politics and personal issues to derivatives and default swaps at the Annual Meeting, 

Highlights: Berkshire AGM 2022

Key Takeaways:

● In the first quarter of the fiscal year 2022, Berkshire Hathaway's operating and EPS results exceeded analysts' predictions.

● Operating revenue and profits grew year over year.

● Its investment portfolio experienced a mark-to-market loss after recording a sizable gain the year before.

● Warren Buffett and Charlie Munger addressed Inflation, Robinhood, stock market speculation, and other topics at the annual shareholders' meeting. 

The Berkshire Hathaway Annual Shareholders Meeting was held at the CHI Health Center in Omaha, Nebraska, three years later. People lined up early on Saturday to get a spot in the front rows for the morning Q&A on April 30. They braved the chilly weather and even a little light rain.

The meeting typically drew 60,000–80,000 people before the pandemic. This year's off-line meeting is highly anticipated by investors, especially as Munger approaches 100, but COVID- There might not be as many people as anticipated, according to reports, because of worries about 19.

Buffett said Inflation had an impact on almost everyone. For equity investors, Inflation is a "swindle," according to Buffet. He later clarified that, additionally, Inflation defrauds bond investors in response to a question. The individual who keeps their money under their mattress is a victim of fraud. It defrauds almost everyone.

He continued, Inflation also increases the amount of capital that businesses require, so increasing prices to sustain inflation-adjusted profits is not as simple as it may seem. He believed that investing in one's skills was the best way to combat Inflation.

Urged investors to concentrate on operating earnings for Berkshire

According to Chairman and CEO Warren Buffett, investors should pay close attention to Berkshire's operating earnings from its fully owned operating subsidiaries. Numerous industries, including insurance, railroad, utility, and energy, are served by these units.

According to Buffet, he simply rejects bitcoin. Nothing is produced by it. Buffett commented that he doesn't know whether it will go up or down in the next year or five or ten years. But I'm fairly certain of one thing: It doesn't produce anything. It has magic to it, and many things have been given magical connotations by people.

Berkshire Hathaway offers numerous chances for businesses to make money. Good ideas can't be ignored, states the Buffet. They have such a hard time finding good ideas. However, they must be substantial. 

Important Lessons: Before 2022, Buffett and Munger exchanged knowledge at the Berkshires' AGM. At Warren Buffett's investment management firm, great salespeople often receive higher rewards than great analysts.

Existing shareholders should benefit from Buffett's buyback. It is not important how much you spend when buying shares. When they believe a stock is trading below its true value, they will repurchase it; they want to make sure that following the repurchase, those who did not sell their shares will be in a better position.

Sources: Economic Times

Warren Buffet says Wells Fargo made big mistakes. Wells made some serious errors, according to Buffett, who added that once a problem is identified, it needs to be fixed. They most likely erred there, in his opinion.

Sources: Economic Times

Liquidity is the King

Warren Buffett claims that they continue to place a high value on having a large cash reserve. They do spend a lot of money quickly. During the first quarter, Berkshire made more than $40 billion in investments. It had its big day on March 4, when it invested $4.6 billion. Nevertheless, they are sitting on more than $100 billion in cash. 

Buffett says that they haven't been very good at timing. According to Buffett, they have no idea what the stock market will do when it opens on Monday. He continued that as a result, neither he nor Munger ever decided to invest based on a projection of what the market or the economy might do. He continued, they're not sure. Buffett said they haven't been very good at timing. He continued they have been reasonably good at determining when they were getting enough money.

Steer clear of the stock market's speculation

According to Buffett, the stock market has always been a mix of reputable investing and more casino-like speculation, but recent years have tended to lean more toward the latter. Buffett said to shareholders it's a gambling parlor, adding that Wall Street had contributed to the casino mentality. Buffett has recommended investing in S&P 500 index funds because doing so will result in significantly lower fees. You can do this for very little money and invest in a variety of American companies to build a diversified portfolio of them.

Being the owner of useful assets is the wisest course of action.

According to Buffett, the stock market has always been a mix of reputable investing and more casino-like speculation, but recent years have tended to lean more toward the latter. Buffett said to shareholders it's a gambling parlor, adding that Wall Street had contributed to the casino mentality. They don't make money unless people do things, and when people gamble rather than invest, they make a lot more money.

Buffett has recommended investing in S&P 500 index funds because doing so will result in significantly lower fees. You can do this for very little money and invest in a variety of American companies to build a diversified portfolio of them.

Ensure that your portfolio is constructed to endure

Some have criticised Buffett for not being more proactive in making investments with that wealth because it is well known that Berkshire has a significant amount of cash on its balance sheet. But he emphasized how important it is to always have enough cash on hand to ensure that the company can survive, especially in times of market panic like the financial crisis of 2007–2009.

According to Warren Buffett, they will always have a lot of cash on hand. If you don't have it, you won't be able to play the following day, as has happened a few times in history and will likely happen more times. It's just like oxygen, he continued. It is always present, but if it goes away for a short while, everything is lost.

Your portfolio can be managed using the same strategy. Deciding to use risky tactics like margin trading or making decisions that could result in long-term losses. By having money set aside in an emergency fund, you can survive the inevitable crises in your own life.

Why Your Learning From Warren Buffet is Missing the Mark (And How You Can Fix It)

● Spend time learning about the business: Along with learning about the product, make sure you are familiar with the economics of the industry. Is it something you have experience with?

● Never buy anything unless you wouldn't mind holding onto it for ten years if the market crashed.

● A great business is helped by time, but a mediocre business is hindered by it. Not knowing what you're doing puts you in danger. Don't even think about holding a stock for ten minutes if you don't intend to keep it for ten years.

Little Known Ways to Learn

For those of us who are not attentive investors, some experts have already done the study and can be simply contacted for a nominal charge. Warren Buffett advises investors to do their research and not invest in companies they don't completely understand.