Warren Buffett Berkshire Hathaway Annual Meeting 2020 Summary and Analysis


The Berkshire Hathaway $BRK.B Annual Shareholders Meeting 2020 was a little different as Charlie Munger was absent and Warren Buffett along with Greg Abel hosted the meeting. Here are the main things that were discussed: Warren Buffett presented for about one hour slides about the history of America with the conclusion that it is not a good idea to bet against America. He gave as example, the civil war, the great depression, 9/11, the financial crisis, two world wars yet the stock market has always gone up. If you had invested in the Dow Jones on the day Warren Buffett was born, you would have waited 20 years to break even on your investment. Nevertheless, over the long-term, stocks always go up and that's on what we must focus. Because the Fed wants to keep inflation at 2%, investing in bonds doesn't make sense but bonds are still better than cash and that's why Berkshire Hathaway has $137 billion in cash and cash equivalents and other marketable securities. This cash can be used for him to make an investment if he finds a good deal. So far, Warren Buffett didn't find any good deal. He also mentioned that he doesn't think that the US will have negative interest rates but that the Fed printing money may lead to higher inflation. The US will never default on its debts since it can print more money. This is not something that other countries can do. The US Dollar is still the reserve currency of the world. As far as the earnings of Berkshire Hathaway are concerned, the $50 billion net loss for last quarter is only because of accounting. In reality, the operating income were up at about $6 billion. Warren Buffett is not forecasting anything about the future as the future is very uncertain. As for succession, when Warren Buffett and Charlie Munger retire, Ajit Jain will be responsible of insurance only while Greg Abel, Todd Combs and Ted Weschler will be in charge of asset management at Berkshire Hathaway. Warren Buffet admitted making a mistake with the airlines and he sold everything. I recently invested in Alaska Air Group $ALK . Will I sell? No, since I bought at a cheap price and I believe in the business. Warren Buffett, on the other hand, finds himself in the situation where he has shares of American Airlines $AAL for example, where he will need to wait decades to make any profits. It is better to admit that he made a mistake and move on. About oil $OIL Warren Buffett said that if you invest in oil, you're betting for prices to go higher. At $20 a barrel the business is unsustainable but he thinks the producers will cut production. Oil prices will remain low for quite some time. Watch the full video on YouTube: https://www.youtube.com/watch?v=Mg9vmUqb2Hw&list=UUPO3uUyoXSaFWG-Ldq1mqEQ Here's the analysis of all the US airlines: https://ishfaaqpeerally.teachable.com/courses/662813/lectures/14996960 Join my private investing group on Facebook for more: https://www.facebook.com/groups/IshfaaqInvesting/

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