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.
Full transcript by Rev.