We Study Billionaires - The Investor’s Podcast Network TIP297: Warren Buffett & the 2020 Berkshire Hathaway Shareholders Meeting Part 1 (Business Podcast)
May 17, 2020
Explore Warren Buffett's dramatic exit from airline stocks during the pandemic and what it reveals about market volatility. Discover whether he believes now is a good time for retail investors to dive into stocks and how Berkshire Hathaway is handling its finances in uncertain times. The hosts also dissect Geico's shifting role within the company and Buffett's long-term investment philosophy. Plus, they tackle the implications of inflation and currency failure on investment strategies in today's economy.
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Airline sale
- Warren Buffett bought 10% of four major airlines, expecting earnings to grow.
- COVID-19 changed his valuation, leading him to sell at a loss, admitting a mistake.
Long-Term Investing
- Buy stocks for the long term, like owning a farm, not short-term gains.
- Be prepared for potential 50% drops; psychological fortitude is crucial.
Berkshire's Inaction
- Berkshire Hathaway hasn't acted as a lender of support during this crisis like in 2008 because of the Fed's intervention.
- The Federal Reserve's actions made borrowing easy for companies, diminishing the attractiveness of Berkshire's lending terms.
