Dive into the wisdom of legendary investor Warren Buffett and his long-time partner, Charlie Munger, in this highlight reel of their 6-hour Berkshire Hathaway annual meeting! In today's speech, the dynamic duo shares their thoughts on the current market, investing strategies, and life lessons.
In this comprehensive video, we've condensed six hours of insight and wisdom from Warren Buffett and Charlie Munger into bite-sized highlights, covering a range of topics. From assessing the current market climate and Berkshire Hathaway's performance to their time-tested investment strategies, this video is a goldmine for those looking to learn from two of the world's most successful investors.
Don't miss out on the chance to gain valuable life lessons from their wealth of experience and their unique perspectives on business, investing, and personal growth. Listen as they share their thoughts on the importance of mental models, how to learn from past mistakes, and the future of Berkshire Hathaway.
Hit the like button if you enjoyed this video, and don't forget to subscribe to our channel for more investing insights, business analysis, and expert advice. Drop a comment below to let us know your favorite highlight from the speech!
In this comprehensive video, we've condensed six hours of insight and wisdom from Warren Buffett and Charlie Munger into bite-sized highlights, covering a range of topics. From assessing the current market climate and Berkshire Hathaway's performance to their time-tested investment strategies, this video is a goldmine for those looking to learn from two of the world's most successful investors.
Don't miss out on the chance to gain valuable life lessons from their wealth of experience and their unique perspectives on business, investing, and personal growth. Listen as they share their thoughts on the importance of mental models, how to learn from past mistakes, and the future of Berkshire Hathaway.
Hit the like button if you enjoyed this video, and don't forget to subscribe to our channel for more investing insights, business analysis, and expert advice. Drop a comment below to let us know your favorite highlight from the speech!
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NewsTranscript
00:00 The legends Warren Buffett and Charlie Munger just spoke for six hours straight, but you
00:05 don't have to watch any of that because we have gone through it, listened to it and picked
00:09 out all of the best and most important pieces that you need to know.
00:13 As always, I'm Gav Blacksburg from Wolf Financial.
00:15 I'm here with Evan from Stock Market News.
00:17 Let's get right into it.
00:18 I'm turning it over to you, Evan, to get us rolling.
00:21 Yeah, I spent my entire day so far listening to Warren Buffett and Charlie Munger.
00:26 It has been a great day so far, but I'm very happy to get some of those points over.
00:31 First thing we got for you, this is the picture of the full arena from today.
00:35 Warren Buffett, Charlie Munger selling out about 20,000 seats in that arena listening.
00:40 I'm sure there was hundreds of thousands of people listening from home, and then they
00:44 had about 50,000 people at the annual shareholder meeting.
00:47 So quite impressive numbers.
00:49 Now we're going to take you through some of the biggest highlights, starting out with
00:52 kind of a little bit more of the investing in general and market thoughts.
00:58 So this was one of my favorite quotes from the entire thing.
01:01 There was a conversation between Charlie Munger and Warren Buffett about value investing.
01:06 Charlie Munger seems to think value investing may be kind of on its way out.
01:11 At least people should get used to making less money from value investing.
01:15 And Warren Buffett came in and disagreed, and this was kind of the premise behind it,
01:20 that what gives you opportunities is other people doing dumb things, and we are certainly
01:24 not out of people doing dumb things.
01:27 So I thought this was a pretty interesting quote.
01:29 And then one that I also, another one that I thought was pretty interesting was Warren
01:33 Buffett's conversations on the next slide about investment decisions and not doing them
01:38 with emotion.
01:39 Direct quote was Warren Buffett saying that he has made bad investment decisions, but
01:42 he has never made an emotional investment decision.
01:45 So that's a pretty good thing to live by if Warren Buffett's doing it.
01:49 That is more than a good enough by me trying to make sure I'm very logical in my investment
01:53 decisions, not emotional.
01:56 Now switching over to some more of the individual stocks he was talking about.
02:01 This is Warren Buffett's biggest holdings.
02:03 Warren Buffett and Berkshire Hathaway's biggest equity holdings.
02:06 I think it's a good kind of precursor into the conversation.
02:10 So you could see they own $151 billion of Apple.
02:13 They hold $29.5 billion of Bank of America, and I won't read through all of them.
02:18 The total portfolio is now worth about $328 billion.
02:22 So looking at this, you might say to yourself, Apple is an extreme amount of it, and it definitely
02:26 is a large part.
02:27 They were even asked about Apple in the call.
02:30 And on the next slide, Buffett directly saying that Apple happens to be a better business
02:34 than anything we own.
02:35 That's part of the reason that they want to own so much.
02:38 But they did get directly asked the question of, should we be concerned about how high
02:43 of an exposure Apple is in the equity portfolio?
02:46 $151 billion divided by $328 billion, you're getting close to 40%, 50% in there.
02:53 And Buffett's response to that question is really that that's looking at that the wrong
02:57 way, that you should be looking at the entire company and its entire assets.
03:01 They own a lot of private companies, Geico, Dairy Queen, so many more on top of that.
03:06 And they really look at Apple as a total portfolio.
03:09 So I think that's also for people in their investments.
03:12 If you have 50% of a stock in one portfolio, but that portfolio happens to be 10% of your
03:17 total net worth, that might not be super concerning to some people.
03:21 So a lot of it is the perspective and opening up of Buffett.
03:25 It is by far their largest equity holding Apple, and Buffett has nothing but good stuff
03:30 to say.
03:31 Moving over to another large company that they don't have as nice of things to say,
03:36 but it's better than that overall I was expecting.
03:39 They were asked directly about their thoughts on Elon Musk.
03:43 And Charlie Munger came out and said that he thinks Elon Musk overestimates himself,
03:48 but is very talented.
03:50 And then Warren Buffett came out and said he likes Elon's recent interview, and that
03:54 people should go in and watch it.
03:56 And overall, they were a little bit more complimentative, if that's even the correct way to say it.
04:01 Maybe I just embarrassed myself four minutes into this video.
04:04 By the way, if you are enjoying this, myself and Wolf, we were trying to do a lot more
04:08 of these YouTube videos.
04:09 Make sure you give the video a like, drop a comment, and subscribe to the channel.
04:13 But yeah, overall they were a little bit more kind towards Elon Musk, saying that he's doing
04:17 big stuff, and he tries to go for the impossible, and sometimes he'll hit it.
04:22 They overall were saying they like to go for the easy though, and what they know.
04:26 So interesting conversations there.
04:27 The quote on the bottom was one I would not expect from Charlie Munger.
04:30 I don't know if you have any thoughts, Wolf, and you watch what he says.
04:34 Maybe he has been investing in BYD, but Charlie Munger saying the electric vehicle is coming
04:39 big time.
04:40 There's a lot of conversations about how that's disrupting the traditional ICE car industry,
04:46 and how much debt and everything there.
04:49 But we will swiftly move on past the Tesla and Elon Musk conversation over to more of
04:55 the US dollar and the Federal Reserve.
04:57 So Warren Buffett said that he sees no other option in the US dollar to be the world's
05:02 reserve currency, and that there's no one better to be in charge of the Fed than Jerome
05:07 Powell.
05:08 On the next slide, Wolf.
05:09 Yeah, it's a pretty interesting quote.
05:11 It's not one that I think everyone would go to love.
05:14 Not everyone on Fin Twitter or Instagram would definitely agree with this, but Buffett has
05:18 definitely been in Powell's camp and supporting him.
05:22 And Warren Buffett also said that he isn't worried about the Federal Reserve's balance
05:26 sheet.
05:27 Wolf, this is an interesting one, right?
05:29 I feel like a lot of people will gravitate toward this quote.
05:31 A lot of people love to hate Powell.
05:34 It's a very tough role that he's in though.
05:36 Yeah, Warren Buffett's repeatedly praised Powell and basically stated that he thinks
05:41 he's done a good job as anyone and he wouldn't want to be in his shoes, which I think is
05:44 pretty interesting.
05:47 Powell's in obviously a weird situation.
05:49 I think at this point, it would be wise to probably pause.
05:53 Hopefully they realize that we haven't seen these levels of interest rates since 2007.
05:59 And so I think for Buffett, though, the one big thing that he probably realizes is that
06:04 Jerome Powell is not the person that he wants to probably go out and make enemies with.
06:09 As somebody that owns a lot of stock, Jerome Powell's decisions directly affect him.
06:16 And so I think that he's probably playing a little bit smart.
06:20 There's a little bit of diplomacy that's going on here.
06:23 The Fed has consulted Buffett on different things.
06:26 Like when that banking situation happened, they felt like they could trust him.
06:30 So I think that this is partially diplomacy and partially Jerome Powell is doing an okay
06:36 job in some cases.
06:38 He's had to deal with some pretty crazy situations and hopefully they do hit that pause button
06:43 soon and we end up not getting a full meltdown.
06:46 So I think that there's partial diplomacy and partially he's being truthful, mostly
06:51 in saying that he would not want to be in his shoes.
06:53 Yeah.
06:54 After listening to it, I did feel it came off pretty truthful.
06:57 Maybe he's just very good at spitting that way, but I didn't feel like it was diplomacy
07:02 or anything like that after listening to it.
07:03 But I think it's a good conversation for another day and we'll continue to have it.
07:08 Buffett did have another quote around the banks.
07:10 It was a really interesting, he brought props.
07:13 He was expecting people to come out and stay and ask about the banks and he had a little
07:18 bit of signs in front.
07:19 Let me get exactly what they said for you, but this quote around Silicon Valley Bank
07:24 that if it wasn't covered, if the depositors weren't covered, it would have been catastrophic.
07:29 Overall, he doesn't really think that an arbitrary FDIC limit of 250K is really a good thing.
07:37 There's an implicit that all of your deposits are going to be safe in the US and he thinks
07:41 that that should be a thing.
07:43 By the way, the signs that he had for the banking industry, right in front of him, he
07:47 had a sign that said available for sale and then he had one in front of Charlie Munger
07:51 that said held to maturity.
07:53 He was coming out with the jokes for the banking industry.
07:57 Look that up if you guys are interested.
07:58 Moving on, we also have his conversations and thoughts around oil.
08:03 Wolf, I know this is a name that names that you guys, you like to watch a bunch, especially
08:08 the Occidental one.
08:09 He said that he doesn't want to buy control of Oxy and he also said that Berkshire, well,
08:15 he didn't actually say this.
08:16 This was kind of in those numbers and worked out math wise, but Warren Buffett's Berkshire
08:19 Hathaway has sold about $7 billion worth of Chevron last quarter.
08:24 So that's certainly something to keep on watch.
08:26 But yeah, Wolf, you have any thoughts around him saying that he doesn't want to buy full
08:30 control of Occidental?
08:32 The way it sounded, he doesn't even want to buy more than 50%.
08:35 Well, first off, I think that that's also a little bit of diplomacy there where no company
08:41 wants to hear somebody that has a lot of money and resources coming out and saying that they're
08:46 basically going to overtake control of that company.
08:48 If he came out and I don't know exactly the question that he was asked here and how it
08:52 led to this, but if somebody asked him about this, it was like, do you want to buy a controlling
08:55 stake?
08:56 And he was like, anything except for no.
08:59 The Oxy-
09:00 He was very, very much saying that like, we don't want this.
09:05 We have no idea what we would do with it.
09:07 We don't want to control it.
09:08 We do not.
09:09 He was very clear in that he did not want it.
09:10 If there wasn't vehement denial, the board would have had to be pulled into an emergency
09:16 meeting right now discussing this, right?
09:19 Like that would just have had to happen.
09:21 So that would have been pretty crazy.
09:23 With Oxy, they've obviously held up really well from where they ran up back in, you know,
09:30 since 2020.
09:31 However, when you look at them on the one year, they actually are down 4% on the one
09:36 year.
09:37 So I think that that was pretty interesting.
09:38 This is for Occidental Petroleum specifically Oxy.
09:42 Some of the others have had, you know, larger runs.
09:45 I believe XOM, I think it's had a little bit more of a run over the past year where that
09:51 one's up, you know, 20 ish percent and has been all the way up to, you know, 30 ish
09:55 percent even recently before it just had this drop off in May.
10:00 So I think it's interesting.
10:01 So first off, I think he's saying that because he doesn't want to freak out the company.
10:03 And then two, I think it makes sense.
10:04 Warren Buffett has not had a rich history with oil stocks, we could say.
10:10 He's had some problems there.
10:11 It's been one of his larger areas of mistakes and he doesn't have many of those.
10:15 So I think, you know, he's done an interesting position here, really building up a bunch
10:20 of stock in Oxy and obviously it's held up pretty well, decently over the past year and
10:24 has a nice run of the last few years and oil could certainly go higher.
10:28 But I think it makes sense for him to say no, that he doesn't want to do a full takeover
10:32 of it.
10:33 All right, perfect.
10:34 Continuing to move on after that, what I'm going to actually make the thumbnail of this
10:38 Warren Buffett's conversations around AI.
10:42 He said that he thinks AI can change everything in the world except for how people behave.
10:48 And maybe there's a caveat on there.
10:49 It might kind of modify how people think and might affect everything on a daily basis.
10:55 But overall, I think this is a pretty interesting statement.
10:59 He did say that he's overall worried about AI and you can't uninvent it.
11:04 He compared it to the creation of the nuclear bomb and nuclear weapons.
11:07 So you could tell Buffett is thinking about it seriously and he did use that analogy a
11:11 couple of times throughout the event.
11:14 Charlie Munger, though, kind of on the next slide, took the other side of it, saying that
11:17 he is skeptical of some of the hype going into AI.
11:20 And I thought his quote was pretty funny, but he said that he thinks old fashioned intelligent
11:26 works pretty well.
11:27 So that's a classic Charlie Munger quote.
11:29 And then the last slide I thought was just a pretty fascinating stat that kind of blew
11:33 my mind here.
11:35 Warren Buffett directly said that on the next slide, that if there were a thousand companies
11:39 paying as much taxes as Berkshire is, it would equal the total taxes the US is currently
11:45 collecting.
11:46 So a little bit backwards math, did it the other way, it said in a different way.
11:49 Berkshire Hathaway pays 0.1% of the total taxes paid to the US government each year.
11:55 That's just kind of a mind boggling stat for me and how much they're paying.
11:59 So overall, a pretty fascinating meeting.
12:03 Overall, Buffett is still very optimistic.
12:05 Munger, maybe not as much.
12:07 I'm very impressed on how long they could speak and how well they could speak.
12:11 Overall, I thought it was a definitely good watch.
12:14 And if you have six hours, maybe go in and listen to it.
12:16 I think you got a lot of the major tips and points and everything that came out of the
12:21 event.
12:22 But yeah, it's impressive at their age to be able to do it.
12:26 And I hope to get to listen to it again next year.
12:28 So we definitely appreciate everyone watching.
12:30 If you enjoyed the video, make sure to give it a like, drop a comment down below if you're
12:34 already here and if you're still here and you're not subscribed.
12:37 I don't know what you're doing.
12:38 We're doing more content just like this.
12:40 We appreciate all of you.
12:42 And Wolf, is there anything you want to leave people with?
12:44 That was a really nice rundown.
12:46 Thank you for going ahead and listening to that for everybody so that we could get these
12:49 notes out to them.
12:50 Obviously, the main focus is being oil, AI, Apple, a couple other pieces in there.
12:56 Succinctly covered and yeah, shout out to these two legends for sharing their knowledge
12:59 and excited for it again next year.
13:01 Thank you everybody that listened.
13:03 If you haven't already, please do like the video.
13:05 It's extremely helpful and of course pushes it in the algorithm.
13:08 And of course, hopefully you've subscribed and we will see you in the next one.
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