We Study Billionaires - The Investor’s Podcast Network TIP245: Part1 - Berkshire Hathaway Shareholders Meeting Q&A - Warren Buffett & Charlie Munger (Business Podcast)
Jun 2, 2019
Warren Buffett reveals why he bought back more shares in Q1 2019 than all of 2018, emphasizing value for shareholders. He shares insights about overpaying for Kraft Heinz, cautioning on the complexities of major investments. There's also valuable advice for aspiring money managers, focusing on personal readiness. Buffett discusses Apple's pivotal role in Berkshire's portfolio, and the potential risks of leveraged buybacks, urging investors to scrutinize management's financial strategies.
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Share Repurchase Strategy
- Repurchase shares only when they sell below a conservative estimate of intrinsic value.
- Ensure remaining shareholders benefit more after the repurchase than before.
Cash Pile and Undervaluation
- Warren Buffett's share repurchases indicate his view of Berkshire's undervaluation.
- His cash pile suggests he prioritizes optionality over immediate stock buybacks.
Kraft Heinz Acquisition Analysis
- Warren Buffett admitted overpaying for Kraft, while Heinz was a good deal.
- He highlighted the changing dynamics of consumer brands and retailer power.