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Known as "Oracle of Omaha" for his path in selecting winning investments, Buffett was joined by his right-hand man Charlie Munger, vice president of Berkshire's board of directors. The two men exchanged views on society, the financial markets, the economy, politics, corporate governance and investments.
Their comments on the short term have been known to move the markets. Their long-term ideas have been rewarding investors.
<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""I am a capitalist with cards""data-reactid =" 18 ">"I am a capitalist with cards"
Buffett wants to clarify his position on economic policy.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""I am a capitalist with cards,he said, "I believe we would not be sitting here, with the exception of the market system and the rule of law over some things embodied in this country." "Data-reactid =" 20 ">" I am a card-carrying capitalist, "he said." I believe we would not be sitting here, with the exception of the market system and the rule of law on some things that are embodied in this country. "
This comes from the fact that proposals for socialist politics have received growing support from the far left.
<p class = "canvas-atom text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "While Buffett has always supported & nbsp;Democratic candidates for the presidency, data-reactid = "22"> Although Buffett has always supported the candidates for Democratic presidential elections, he does not think that the pendulum will really go that far.
"I do not think the country will enter socialism in 2020, 2040 or 2060," Buffett said.
Warren Buffett, President and CEO of Berkshire Hathaway, left, and Charlie Munger, Vice President, Chair of the Annual Berkshire Hathaway Shareholders Meeting in Omaha, Neb., Saturday, May 4, 2019. (AP Photo / Nati Harnik )
"I think we're all in favor of a government social safety net in a country as prosperous as ours," added Munger. "What many of us do not like, is the great stupidity with which some parts of this net social security are run by the government".
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "[[[[Read More: Warren Buffett: I am a "capitalist cardholder", rejects American socialism}"data-reactid =" 45 ">[[[[Read More: Warren Buffett: I am a "capitalist cardholder", rejects American socialism}
<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The purchase of Amazon was a bet of "value""data-reactid =" 46 ">The purchase of Amazon was a bet of "value"
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "On the Thursday before the meeting, Buffett revealed Becky Quick, from the CNBC channel, which & nbsp;Berkshire had amassed a new position in Amazon& nbsp; (AMZN). He attributed the purchase to "one of the types of office that handle money". In other words, the decision was made by Todd Combs or Ted Weschler. "Data-reactid =" 47 "> On the Thursday preceding the meeting, Buffett revealed to CNBC's Becky Quick that Berkshire had acquired a new position in Amazon (AMZN), attributing this purchase to" one of the guys in the office " who manage money. "In other words, the decision was made by Todd Combs or Ted Weschler.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "It was a troubling development & nbsp;for some Buffett observers& nbsp; who think the Amazon stock is closer to its top than its bottom. "data-reactid =" 48 "> This is a disturbing development for some Buffett observers who believe that the Amazon stock is closer to its top than its bottom.
During the meeting, an investor asked how "valuable investors" like Buffett, Combs and Weschler could support such a bet.
<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" It is interesting to note that the term investment in the value was mentioned because I can assure you that both managers – and one of them bought Amazon stock during the last quarter – he is a value-oriented investor, "& nbsp;Buffett said. "data-reactid =" 50 ">" It is worth noting that the term investment in value has been mentioned because I can assure you that both managers – and one of them bought Amazon shares in the last quarter – is a valuable investor, "said Buffett.
"The two people, one of whom has invested in Amazon, are studying hundreds of titles," he added. "Because they are managing less money in their universe, they are looking for things that, in their opinion, understand what will be developed by this company from here to the day of judgment."
Buffett further argued that all investments "invest in value".
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "[[[[Read more: Warren Buffett defends the purchase of Berkshire's Amazon shares as a "valuable investment"]"data-reactid =" 53 ">[[[[Read more: Warren Buffett defends the purchase of Berkshire's Amazon shares as a "valuable investment"]
<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In defense of Wells Fargo's leadership"data-reactid =" 54 ">In defense of Wells Fargo's leadership
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Wells Fargo continues to recover from its & nbsp;false account scandalThe first bank learned that employees had created millions of accounts for customers without their permission. "data-reactid =" 55 "> Wells Fargo continues to recover from its false accounts scandal, which the whole world was informed of for the first time in September 2016. The bank admitted that employees had created millions accounts for clients without their permission.
Wells' misfortunes led to the departure of CEO John Stumpf in 2016 and more recently to Tim Sloan in 2019, who succeeded Stumpf.
Some called for imprisoning Wells' senior executives, including 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 to me that Wells made big mistakes in what they incited, "& nbsp;Buffett said. "I saw it in a lot of places. This clearly existed in Wells. To the extent that they opened false accounts, a few million of them had no balance, it could not have been profitable for Wells. "" Data-reactid = "58"> "It seems to me that Wells Buffett made big mistakes in their incentives, I've seen it in many places, and it clearly existed in Wells. open fake accounts, a few million of them that had balance in them, that would not have been profitable for Wells. "
While senior leaders were responsible for the incentives, they should not be acts incited by these incentives, explain Buffett and Munger.
"I do not think people should go to jail for serious miscalculation. It's bad enough to lose your job, "said Munger. "I would like Tim Sloan to be always there."
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "[[[[Read More: Warren Buffett and Charlie Munger Advocate Wells Fargo's Underprivileged CEOs]"data-reactid =" 65 ">[[[[Read More: Warren Buffett and Charlie Munger Advocate Wells Fargo's Underprivileged CEOs]
<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Berkshire's volatile profits and growing cash reserve"data-reactid =" 66 ">Berkshire's volatile profits and growing cash reserve
The meeting began with Buffett, who plunged into the current state of Berkshire and his recent performances.
<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "First, Buffett & nbsp;decried a new accounting rule that was spoiled Berkshire's net profit. More specifically, the rule requires companies to value the market value of their equity portfolios. And Berkshire's portfolio is huge, which caused sharp fluctuations in profits. "Data-reactid =" 68 "> First of all, Buffett decried a new accounting rule that ruined Berkshire's net profits – more specifically, the rule at the market value of their equity portfolios. Berkshire's portfolio is huge, which caused sharp fluctuations in profits.
"The final results will be totally capricious," he said. "What worries me is the interpretation … I just hope that no one will be misled."
That said, Berkshire has announced modest growth in its quarterly operating profit.
The many companies in Berkshire Hathaway
Second, Buffett and Munger addressed the issue of share buybacks. In the first quarter, Berkshire repurchased $ 1.7 billion of Class A and Class B shares. This is because M & A options remain unattractive.
"We are probably going to be more liberal in the redemption of shares," said Munger.
<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" We hope to move forward in the coming years much of our excess liquidity in companies that Berkshire will hold permanently, "said Buffett in his & nbsp;2018 letter to shareholders. "The immediate prospects for this, however, are not good: prices are extremely high for companies with decent long-term prospects." "Data-reactid =" 93 ">" In the coming years, we hope to see Excess liquidity in companies that Berkshire will hold permanently, "said Buffett in a 2018 shareholder letter." The immediate outlook for this, however, is not good: prices are exorbitant for companies with decent long-term prospects. "
<p class = "canvas-atom text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "For the moment, & nbsp;Berkshire cash reserve continues to grow. At the end of the first quarter, the company had $ 114.2 billion, compared with $ 111.9 billion at the end of the fourth quarter. "Data-reactid =" 94 "> For now, the Berkshire cash reserve continues to grow.At the end of the first quarter, the company had $ 114.2 billion, against $ 111.9 billion dollars at the end of the fourth quarter.
"We are certainly willing to spend $ 100 billion [on buybacks]Buffett said if the market value of Berkshire was to be lower than the intrinsic value.
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General Meeting of Shareholders of Berkshire Hathaway 2019
<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Coca-Cola and cannabis"data-reactid =" 108 ">Coca-Cola and cannabis
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Friday, Buffett and Munger shared some & nbsp;thoughts on marijuana& nbsp; in response to a question from Liz Claman of Fox Business Network. "data-reactid =" 109 "> On Friday, Buffett and Munger shared their thoughts on marijuana in response to a question from Liz Claman of Fox Business Network.
<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" It would be a mistake for Coca-Cola (KO) to start trading in marijuana – cannabis ", reportedly told Claman. "They have a healthy image and that would be detrimental to them." "Data-reactid =" 110 ">" It would be a mistake for Coca-Cola (KO) to get into the marijuana-cannabis business, "they said. declared. reportedly told Claman. "They have a healthy image and that would be detrimental to him."
"Our President and CEO, James Quincey, has repeatedly stated that we have not intended to enter this space," said a Coca-Cola spokesman at 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 (0) – sm Mt (0.8em) – sm" type = "text" content = "It all started with a "stupidly stupid decision""data-reactid =" 113 ">It all started with a "stupidly stupid decision"
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Buffett, 88, has for the first time invested in a Berkshire Hathaway, a struggling textile company, & nbsp;back in December 1962, accumulating 7% of the company at $ 7.50 per share. The company belonged to a man named Seabury Stanton who, in 1964, asked Buffett the price at which he would be willing to sell his stake. Buffett, 11, has announced a $ 11.50 contract. "Data-reactid =" 114 "> Buffett, 88, first invested in a Berkshire Hathaway textile company in December 1962, accumulating 7% of the company at $ 7.50 per share. a man named Seabury Stanton who, in 1964, asked Buffett what price he would be willing to sell his stake in. He then announced a $ 11.50 transaction.
However, Stanton later turned around and offered the shareholders a public tender offer of $ 11,275 per share. Buffett did not care about this behavior, so he clung to it.
<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" It was a stupidly stupid decision ", Buffett says in his & nbsp;2014 Letter to Shareholders. "Irritated by Stanton's work, I ignored his offer and started aggressively buying more Berkshire shares." "Data-reactid =" 116 ">" It was a monumental decision stupid, "said Buffett in his 2014 letter to shareholders." Irritated by Stanton chided, I ignored his offer and began aggressively buying more Berkshire stock. "
Buffett took control of the company in May 1965. Then come two decades of hard lessons.
"In the 18 years since 1966, we have struggled relentlessly in the textile sector without success," he said. "But stubbornness – stupidity? – has its limits. In 1985, I finally threw the sponge and closed the operation.
Despite his great success and status, Buffett's career is fraught with failures. In the end, his true triumph is learning from his mistakes to seal his legacy as the world's largest investor.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In addition, by letters, interviews, meetings During his appearances, Buffett shared his lessons with the public so that he could become better investors.So, if many know him as a great investor, many will remember him. as a great teacher. "data-reactid =" 120 "> In addition, through letters, interviews, meetings and television shows, Buffett shared his lessons with the public, to make him a better investor. Many consider him to be an excellent investor and many will remember him as a great teacher.
The Berkshire portfolio includes fingerprints of Todd Combs and Ted Weschler.
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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Sam Ro is editor at Yahoo Finance. Follow him on Twitter: @SamRo"data-reactid =" 142 ">Sam Ro is editor at Yahoo Finance. Follow him on Twitter: @SamRo
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