Buffett describes his beginnings as an investor when he was 11 years old
A man walks a dog in the shade away from the midday sun past the New York Stock Exchange (NYSE) building in Manhattan, during hot weather in New York City, New York, USA, August 11, 2020.
Mike Segar Reuters
A trip to the New York Stock Exchange when he was 9 years old was inspiring for Warren Buffett, who is known to have started investing when he was 11 years old.
“I went to the New York Stock Exchange, I was delighted,” Buffett said. “I became very interested in technical analysis and drew stocks and did all sorts of crazy things, did hours, hours and hours and saved money to buy other stocks and tried to break. I just did everything.
The investor bought shares at 11 after spending his childhood reading books on the subject from the library and his father’s office. He said his approach to investing later changed completely when he was 19 or 20, after reading a specific passage from the book in what he said should be Benjamin Graham’s “Smart Investor.” .
“I looked at this book and saw a paragraph and he told me I was doing everything wrong. It’s just that the whole approach is wrong, “Buffett said.
– Sarah Min
Munger says Robinhood “unraveled”
Charlie Munger cited the unbroken brokerage firm Robinhood as an example of a good idea that is “too much”.
Shares fell below $ 10 a share last week after the company announced cuts and declines in active consumers. It debuted at $ 38 per share in July 2021.
“Look at what happened to Robinhood, from top to bottom,” Munger said. “Wasn’t it quite obvious that something like this would happen?”
Munger said the “hidden concessions” of this business model were “disgusting.” Robinhood makes money from a practice known as order flow payment. Receives part of the spread on transactions that the company forwards to larger retailers.
“It unraveled. “God is just,” Munger said.
“Jesse Pound.”
Munger says “just say no” to putting bitcoins in his retirement account
Charlie Munger is not on bitcoin yet.
He answered a question from a member of the public who asked in which individual stocks they would invest, given how high inflation is rising.
Berkshire executives did not say where they would invest their money, but Munger knew where he would not invest: bitcoin.
“When you have your own retirement account and your friendly advisor offers you to invest all your money in bitcoin, just say no,” he said.
Munger’s response was a thinly veiled reference to big news from Fidelity this week that will now allow employees to put bitcoins in their employee-sponsored retirement accounts.
Munger and Buffett have long been critics of bitcoin, which is becoming increasingly attractive to certain investors because of its potential as a hedge of inflation.
“Tanaya Machel.”
Buffett says he has never been “good in time”
Warren Buffett said he never figured out how to synchronize markets.
“We have no idea what the stock market will do when it opens on Monday,” Buffett said in response to a question from the public.
“I don’t think we’ve ever made a decision in which one of us said or thought we should buy or sell based on what the market will do, or on this issue, on what the economy will do. We don’t know, “he continued.
The Omaha Oracle said it often misrecognizes the profitable stocks it has chosen over the years, saying it has also missed some great opportunities. Buffett said he failed to make some major purchases in the early days of the pandemic. In just one day in March 2020, the Dow Jones Industrial Average fell 12.9%, its worst day since 1987.
Instead, Buffett sticks to a value-for-money strategy or chooses stocks with attractive valuations instead of focusing on the vagaries of the stock market.
“We weren’t good at the time,” Buffett said. “We were relatively good at finding out when we were getting enough for our money. And we had no idea when we were buying something, but we always hoped it would go down for a while so we could buy more … I mean, you could learn these things in fourth grade. “
– Sarah Min
Berkshire’s head of insurance explains how Geico lags behind rival Progressive
Display showing Gecko’s character for GEICO Insurance during Berkshire Hathaway’s annual shareholders’ meeting in Omaha, Nebraska.
Yun Li | CNBC
Berkshire Hathaway Vice President Ajit Jain, who runs all of the conglomerate’s insurance companies, complains that Geico is lagging behind Progressive’s competitor in the car insurance business.
“Everyone has their pros and cons, but having said that, there’s no doubt that Progressive has recently done a much better job than Geico, both in terms of margins and growth,” said Jane.
“There are a number of reasons for this, but I think the biggest culprit when it comes to Geico … is telematics,” he added. Telematics refers to the installation of a car device that tracks driving patterns in exchange for a lower insurance rate.
“Progressive has been in the telematics line for more than 10 years. Until recently, Geico was not involved in telematics,” said Jane. “The journey is long, but the journey has begun and the initial results are promising. It will take some time, but I hope that in the next year or two Geico will be in a position to catch up with Progressive.”
Jain’s comments came after Berkshire announced earlier in the day a huge drop in its insurance business profits for the first quarter.
“Fred Imbert.”
Munger blew up calls for a separate chairman and CEO of Berkshire
Berkshire Hathaway Vice President Charlie Munger has spoken out in response to a proposal to remove CEO Warren Buffett as chairman.
“This is the most ridiculous criticism I’ve ever heard,” Munger said.
“It’s as if Odysseus will return from winning the battle of Troy, and so on, and someone will say, ‘I don’t like the way you held your spear when you won that battle,'” he added, referring to the ancient Greek epic Odyssey. .
The California Civil Service Retirement System, or CalPERS, the largest public pension fund in the United States, said earlier this month that it would vote in favor of the shareholder’s proposal to remove Buffett from his presidency while remaining chief. CEO. The purpose of the proposal stems from concerns about corporate governance with a single person playing dual roles.
“Someone who has never run a business doesn’t know anything – I don’t think too much about this business,” Munger said.
“Hanna Miao.”
Munger says today’s stock market is “almost a mania for speculation”
Charles Munger at the Berkshire Hathaway meeting, April 30, 2022
CNBC
Munger said today’s stock market has become “almost a mania for speculation”.
His comment hinted at both high-frequency algorithmic trading and the access of new investors, which intensified during the pandemic.
“We have computers with algorithms that trade against other computers,” Munger said. “We have people who know nothing about stocks, they are advised by stockbrokers who know even less.
“But I understand the commission,” Buffett joked.
After Munger likened the operation to a casino where people play dice and roulette, Buffett extended the comparison.
“People and poker chips from traders are pulling the knob,” he said. “They’ve set up the system so that if you want to buy a three-day share call, you can do it, and they make more money by selling you calls than if you buy shares, so they teach you to call. No one will go around selling farm calls. That’s why markets do crazy things. Sometimes Berkshire gets a chance to do something. This is not because we are smarter. … we are reasonable and that is the basic requirement in this business. “
“Tanaya Machel.”
Buffett says he has “so many problems” finding a business to invest in
Warren Buffett said Berkshire Hathaway is open to investing in business anywhere, not just in the United States
“We have so many problems finding good ideas that we can’t afford to ignore any,” Buffett said. “But they have to be big.”
Buffett said that although he is looking for new investments, he prefers to be proactive.
“We will pay any price, we will climb all sorts of hills to find a business, but we actually prefer when they fall on our lap,” Buffett said.
“Hanna Miao.”
Buffett wants Berkshire to be in a “position to work” if the economy stops
Buffett said he wanted Berkshire Hathaway to be in a “position to work” if the economy stopped.
“We want Berkshire Hathaway to be there and in a position to work if the economy stops,” Buffett said. “And that can always happen, it can always happen.”
Buffett played a significant role during the Great Recession, providing capital at key times to companies such as Bank of America and Goldman Sachs. The move drew criticism from those who disapproved of the big banks’ support.
The billionaire investor made these remarks, while praising the role of the Federal Reserve during the 2008 financial crisis and pandemic.
“The Federal Reserve is not gone,” Buffett said. He added that the Fed will “do what is necessary … This happened in 2008 and 2009 and this happened in 2020 and you will hope to happen again next time.”
– Sarah Min
Berkshire’s portfolio executives are discussing the impact of inflation
Jim Weber, CEO of Brooks at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on April 29, 2022.
David A. Grogan CNBC
Ahead of the shareholders’ meeting, executives at several Berkshire portfolio companies told CNBC how inflation is affecting their business.
One of those executives was Jim Weber, CEO of Brooks Running.
Weber said it was difficult to raise prices for Brooks products, but said some of the cost pressures could soon cool.
“We do not have unlimited pricing power, but we have made selective price increases where we think we can. But our whole industry is so competitive. This is a big market … I believe …
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