The recent 2020 Berkshire Hathaway Annual Shareholders Meeting was live streamed from an empty auditorium on 2 May 2020.

At 89 years old, he spoke to camera for over 4 1/2 hours. He also used “slides” for the first time in 67 years of teaching and presenting.

No Munger (although the 96-year old is in “fine shape”). Greg Abel sat on Buffet’s left, although he didn’t get a chance to speak until over two hours in – does this imply he is the successor?

There are plenty of commentaries out there but a couple of words of wisdom worth noting.

Some have called it a pep talk for America.

US Default?

  • Will the US default on its bonds? “no”
  • “The trick is to keep borrowing in your own currency.” link here

Buybacks – fashionable or stupid?

  • He has been both a supporter and a critic of buybacks in the past.
  • Here follows a simple lesson in share ownership. link here
  • Also includes some detail of Buffett’s philanthropic activities.

Creative destruction is at play

  • “for the ones who are destroyed, it can be a very brutal game”. (04:21:40)

Active or Passive?

  • He said it again “in my view, for most people, the best thing to do is to own the S&P 500 index fund. People will try and sell you other things because there’s more money in it for them if they do.” (01:22:02)
  • “Berkshire will grow. But we do not think if you own a great many businesses that every one is destined for success. That’s why I suggest to people they buy an index fund.” (03:01:43)
  • Is the day of passive investing over? (03:05:51)

Buyer or Seller?

  • Despite lots of cash (U$140bn) on the balance sheet, Berkshire wasn’t a buyer in March, but Buffett said he is ready… (02:11:11)
  • But he’s holding his US banks.
  • No screaming buys out there, holding banks, selling airlines.

Airlines sold

  • The world has changed for airlines and Berkshire has exited its holding in the four major US carriers (American Airlines, Delta Airlines, Southwest Airlines, and United Continental).
  • “When we change our mind, we don’t take half measures or anything of the sort.”(02:10:44)
  • Bailouts coming.

Low interest rates

  • “This is a very good time to borrow money, which means it may not be such a great time to lend money, but it’s good for the country that it’s a good time to borrow money.” (02:22:10)

One for the kids

  • Some words of wisdom for the kids, pay down debt and credit cards (04:08:00)

Never bet against America.

https://www.youtube.com/watch?v=69rm13iUUgE

Full transcript by Rev.


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