📺 Berkshire Hathaway 2021 Annual Shareholders Meeting $BRK.B was a little different from usual as once again it did not gather thousands of people and we had not only Warren Buffett and Charlie Munger speaking but also Ajit Jain and Greg Abel.
⌛Warren Buffett showed a list of the 20 largest companies in the world today and the 20 largest companies in the world 30 years ago. None of these 20 companies stayed on the list. 𝙏𝙝𝙚 𝙛𝙪𝙩𝙪𝙧𝙚 𝙞𝙨 𝙣𝙤𝙩 𝙚𝙦𝙪𝙖𝙡 𝙩𝙤 𝙩𝙝𝙚 𝙥𝙖𝙨𝙩. If a stock has been growing by 20% a year for the last 10 years, it may not continue to do so. This is an example of an essential part of entrepreneurial capitalism, Creative Destruction. For example, Google $GOOG is now returning more cash to shareholders than investing in R&D, this is a new stage to their business lifecycle.
🚗 Warren Buffett also showed us a list of car companies that went bankrupt. There have been over 2000 of them. 𝙀𝙫𝙚𝙧𝙮𝙗𝙤𝙙𝙮 𝙬𝙖𝙨 𝙩𝙧𝙮𝙞𝙣𝙜 𝙩𝙤 𝙢𝙖𝙠𝙚 𝙖 𝙣𝙚𝙬 𝙘𝙖𝙧. Today only some of these companies survived. Just because a technology is new and revolutionary doesn't mean you should invest in it without doing your homework.
✈️ 𝙒𝙝𝙮 𝙒𝙖𝙧𝙧𝙚𝙣 𝘽𝙪𝙛𝙛𝙚𝙩𝙩 𝙙𝙞𝙙𝙣'𝙩 𝙗𝙪𝙮 𝙨𝙩𝙤𝙘𝙠𝙨 𝙙𝙪𝙧𝙞𝙣𝙜 𝙩𝙝𝙚 𝙘𝙧𝙖𝙨𝙝 𝙞𝙣 𝟮𝟬𝟮𝟬 𝙖𝙣𝙙 𝙬𝙝𝙮 𝙝𝙚 𝙨𝙤𝙡𝙙 𝙩𝙝𝙚 𝙖𝙞𝙧𝙡𝙞𝙣𝙚𝙨? He's managing over $800 billion and it is hard for him to find good deals, especially with the Fed providing liquidity. Besides, he had to sell the airlines since they were getting money from the government and he didn't want to put Berkshire Hathaway in an uncomfortable situation.
📚 𝙏𝙝𝙚 𝙨𝙩𝙤𝙧𝙮 𝙤𝙛 𝙝𝙤𝙬 𝙒𝙖𝙧𝙧𝙚𝙣 𝘽𝙪𝙛𝙛𝙚𝙩𝙩 𝙢𝙚𝙩 𝘼𝙟𝙞𝙩 𝙅𝙖𝙞𝙣 𝙞𝙨 𝙞𝙣𝙩𝙚𝙧𝙚𝙨𝙩𝙞𝙣𝙜. The latter didn't know anything about insurance and today, 35 years later, he's managing one of the largest insurance businesses in the world. You can always learn. As for the successor of Warren Buffett as CEO, it is going to be Greg Abel.
💸 Warren Buffett says that he doesn't base his investments on 𝙢𝙖𝙘𝙧𝙤𝙚𝙘𝙤𝙣𝙤𝙢𝙞𝙘𝙨. He still believes in America $SPX500 , and that stocks are cheap if interest rates are at 0%. He's seeing inflation.
💼 There were two important votes on Climate Change and Diversity during the business part of the meeting. Warren Buffett says that these proposals come from institutional investors who do not have skin in the game.
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