This Week in Intelligent Investing
Takeaways and Lessons from the Berkshire Hathaway Annual Meeting 2023
Podcast summary created with Snipd AI
Quick takeaways
- Increased opportunities to make money due to an increase in people making dumb decisions
- Caution expressed about the banking industry and the fundamental change in behavior with deposits and bank runs
- Mixed views on artificial intelligence, with Buffett highlighting its potential and Munger expressing skepticism
- Belief that US dollar will continue to be the world's reserve currency, dismissing alternatives like the Chinese currency or cryptocurrency
- Importance of positive US-China relations and the need for both countries to coexist and find a balance
- Buffett's successful investments, partnerships, and capital allocation decisions identified as important factors in Berkshire's success
Deep dives
Buffett's Remarks on the Increase in Dumb Decision Making
Buffett stated that there has been a significant increase in the number of people making dumb decisions, creating more opportunities to make money.
Cautious Stance on Banks
Buffett and Munger expressed caution about the banking industry, with Buffett not making any new investments and pointing out the fundamental change in behavior with deposits and bank runs.
Artificial Intelligence and its Impact
Artificial intelligence was discussed multiple times, with Buffett highlighting its potential to change the world, but Munger expressing skepticism about the hype.
The US Dollar as the Reserve Currency
Buffett believes that the US dollar will continue to be the world's reserve currency, dismissing alternative options like the Chinese currency or cryptocurrency.
Importance of US-China Relations
Buffett stressed the importance of positive US-China relations, emphasizing the need for both countries to coexist and find a balance.
Successful Investments in Banks and Companies
Buffett's successful investments in companies like Geico, American Express, BNSF, Apple, Sees Candies, and his partnership with Charlie Munger were discussed.
Positive Outlook on Energy and Climate Change
Buffett expressed optimism about the oil industry's future and the need to invest in renewable energy sources to preserve hydrocarbons.
Focus on Capital Allocation Decisions
Buffett's focus on capital allocation decisions, including hiring Ajit Jain, winding down textile operations, and his involvement in insurance and reinsurance businesses, were identified as important factors in Berkshire's success.
Interest in Japanese Investments
Buffett's interest in investing in Japanese companies and his positive interactions with management from trading houses in Japan were highlighted.
Quality Questions and Impactful Answers
The quality of questions during the annual meeting and Buffett's candid answers were noted as highlights of the event.
Buffett's Selective Investments and Decision-making Philosophy
Buffett's investment decisions, including his selectivity and focus on long-term value creation, were discussed as key aspects of his investment philosophy.
The Significance of Buffett's Annual Letter and Shareholder Revolution
Buffett's annual letter and his emphasis on the importance of a strong capital allocation decision-making process were noted as valuable insights for investors.
Buffett's Long-term Track Record of Successful Decisions
The discussion highlighted Buffett's long-term track record, in which he made one great decision approximately every five years, contributing to Berkshire's success.
The Essays of Warren Buffett as a Valuable Resource
The book 'The Essays of Warren Buffett' was mentioned as a valuable resource for investors, covering everything needed to know about investing and business.
Thoughts on the Berkshire Annual Meeting
Overall, the Berkshire annual meeting was described as a normal and informative event with a high attendance and positive reception from attendees.
In this episode, co-hosts Phil Ordway, Elliot Turner, and John Mihaljevic discuss takeaways and lessons from the Berkshire Hathaway Annual Meeting 2023. Phil kicks off the episode with a personal recap of his trip to Omaha.
Enjoy the conversation!
The primary purpose of this podcast is to educate and inform. The views, information, or opinions expressed by hosts or guests are their own. Neither this show, nor any of its content should be construed as investment advice or as a recommendation to buy or sell any particular security. Security specific information shared on this podcast should not be relied upon as a basis for your own investment decisions -- be sure to do your own research. The podcast hosts and participants may have a position in the securities mentioned, personally, through sub accounts and/or through separate funds and may change their holdings at any time.
About the Co-Hosts:
Elliot Turner is a co-founder and Managing Partner, CIO at RGA Investment Advisors, LLC. RGA Investment Advisors runs a long-term, low turnover, growth at a reasonable price investment strategy seeking out global opportunities. Elliot focuses on discovering and analyzing long-term, high quality investment opportunities and strategic portfolio management. Prior to joining RGA, Elliot managed portfolios at at AustinWeston Asset Management LLC, Chimera Securities and T3 Capital. Elliot holds the Chartered Financial Analyst (CFA) designation as well as a Juris Doctor from Brooklyn Law School.. He also holds a Bachelor of Arts degree from Emory University where he double majored in Political Science and Philosophy.
Philip Ordway is Managing Principal and Portfolio Manager of Anabatic Fund, L.P. Previously, Philip was a partner at Chicago Fundamental Investment Partners (CFIP). At CFIP, which he joined in 2007, Philip was responsible for investments across the capital structure in various industries. Prior to joining CFIP, Philip was an analyst in structured corporate finance with Citigroup Global Markets, Inc. from 2002 to 2005. Philip earned his B.S. in Education & Social Policy and Economics from Northwestern University in 2002 and his M.B.A. from the Kellogg School of Management at Northwestern University in 2007, where he now serves as an Adjunct Professor in the Finance Department.
John Mihaljevic leads MOI Global and serves as managing editor of The Manual of Ideas. He managed a private partnership, Mihaljevic Partners LP, from 2005-2016. John is a winner of the Value Investors Club’s prize for best investment idea. He is a trained capital allocator, having studied under Yale University Chief Investment Officer David Swensen and served as Research Assistant to Nobel Laureate James Tobin. John holds a BA in Economics, summa cum laude, from Yale and is a CFA charterholder.
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