Close Menu
Finance

Warren Buffett appears on stage for the first time without Charlie Munger

Max SmithBy No Comments9 Mins Read


Berkshire Hathaway's (BRK-A, BRK-B) annual shareholder meeting on Saturday will be the first of a new era for the conglomerate.

For the first time in decades, Warren Buffett did not sit with his vice chairman, Charlie Munger, during hours' worth of questions from Berkshire shareholders. Munger passed away late last year at the age of 99.

In his annual letter to Berkshire shareholders, Buffett called Munger the “architect” of modern-day Berkshire Hathaway. Berkshire Hathaway's name comes from a now-defunct New England textile company that grew to become one of the largest conglomerates in the S&P 500.

Buffett, along with Berkshire Vice Chairman Greg Abel and Ajit Jain, began fielding several hours of questions from shareholders around 10:15 a.m. ET.

For the first time, non-shareholders can now watch the annual shareholder film, which features a montage of Munger's punchiest quotes over the years, as well as celebrity cameos from those films. For many years.

Early in the Q&A, Buffett touched on the company's decision to exit its holdings in Apple (AAPL) during the first quarter, noting that although the company had sold the stock, in his view the company “could still hold it.” is very high.” Biggest stock investment at the end of the year.

Regarding the company's growing cash and Treasury holdings, Buffett said the value of those holdings will likely exceed $200 billion this quarter and is “very comfortable with its position.” ” he said.

Asked about Berkshire's desire to expand overseas, particularly in China, Buffett said, “Our primary investment will always be in the United States.”

live10 updates

  • Florida “believes more in the free market” than other states with insurance issues

    In recent years, insurance premiums across the United States have soared regardless of the type of insurance.

    And no state has experienced more turmoil than Florida.

    Asked about the state of Florida's insurance market, Ajit Jain, vice chairman of Berkshire Hathaway, which runs Berkshire Hathaway's vast insurance business, said on Saturday that the state's insurance market “has been tough the last few years.” .

    Jain said the state is “very difficult for risk-takers to make money,” citing problems with the state's legal system and recent storms that have caused severe damage in the state. Stated.

    U.S. auto insurance premium rates rose 22.4% year-on-year in March, the highest level in 47 years. Average car insurance premiums in Florida are currently over $2,900 per year, the third highest in the nation.

    Jain also noted that Florida is currently a market that receives subsidies from other parts of the state. This means that Florida's insurance companies, as a state with a higher proportion of high-cost claims, are able to offset these costs by collecting premiums in a less volatile market. –But he said this dynamic “does not stand the test of time.”

    But in the long term, Jain seems optimistic about the market, saying, “I hope that Florida will have a pretty buoyant insurance market. At the end of the day, Florida is a much more free market market than other states.” Because I believe in it.”have [an] It's an insurance crisis like California and New York. ”

  • With Apple's AI release just around the corner…

    In the presence of Apple (AAPL) CEO Tim Cook and Microsoft (MSFT) co-founder Bill Gates, Warren Buffett struck a cautious tone regarding AI.

    He said he had a very “nervous” experience with AI.

    He saw an image of him, his voice, and his clothes “right in front of my eyes'' conveying the message “I'll never get it from him.''

    “If I were interested in investing in fraud, [AI] It will be the fastest growing industry in history. …Clearly, AI also has the potential for good things. …As someone who doesn't understand anything about it, it could very well be good or it could very well be harmful,” Buffett said.

  • 2 stocks that Charlie Munger told Warren Buffett he must buy

    BYD (BYDDY) and Costco (COST).

    These are the stocks Warren Buffett told Berkshire Hathaway shareholders on Saturday that Charlie Munger has argued the most in all his years with him.

    “Charlie banged the table twice with me and said, 'Buy, buy, buy.' BYD was one of them and Costco was the other,” Buffett told shareholders. “Costco should have been more proactive.”

    “It wasn't fatal that we didn't do that,” Buffett added. [Charlie] Both companies were very correct. ”

    Buffett's answer was in response to a shareholder question about what the company would need to do to increase its investment in China. Currently, the company's only investment in the country is EV maker BYD.

    “Our primary investment destination has always been the United States,” Buffett said.

  • Warren Buffett's next big trade probably won't come from overseas

    Warren Buffett has a lot of cash in his hands with Berkshire (BRK.A BRK.B), but he doesn't expect big deals to come from overseas.

    Mr. Buffett reiterated his love for investing in America.

    “You won't find us making many investments outside of the United States. But we participate in the global economy through these companies. I understand the rules and weaknesses of the United States and “I'm here” [and] Strengths…. I don't feel the same way all over the world. And luckily, you don't have to. ”

    However, Buffett reaffirmed his commitment to investing in Japan.

  • Warren Buffett calms Apple concerns

    As Miles Udland pointed out above, Berkshire (BRK.A BRK.B) sold some of its Apple (AAPL) stock in the first quarter.

    Buffett was quick to allay concerns about the tech giant, saying whether his view of Apple has changed:

    “No, but we sold the stock. …At the end of the year, I think it's very likely that Apple will be the largest common stock we currently own. …Charlie and I looked at common stocks…We are a business, so even if we own Dairy Queen, whatever it is, we look at it as a business…We always look at all I look at stocks as a business.”

    Buffett later compared Apple to long-term holdings American Express (AXP) and Coca-Cola (KO), noting that Apple would become a stock if Greg Abel took over.

    Yahoo Finance's Michael Kelley contributed to this post.

  • If Warren Buffett is concerned about the country's debt situation…

    This is not reflected in Berkshire's (BRK.A BRK.B) cash and Treasury bill line items on its balance sheet.

    Berkshire disclosed that it had $182 billion in cash and Treasury bills at the end of the first quarter. Buffett told shareholders that number could reach $200 billion by the end of the second quarter.

    Concerns about the nation's debt are beginning to grow on Wall Street.

    Below is what Bank of America (BAC) CEO Brian Moynihan told Yahoo Finance about our nation's debt.

  • Warren Buffett's elevator pitch promoting his ownership of Berkshire Hathaway

    Just in case you need this fodder at a cocktail party…

  • Berkshire's insurance business shines, but won't repeat this year

    Berkshire's operating income of $11.22 billion in the first quarter was primarily due to the company's insurance business, which totaled $5.2 billion in the first quarter.

    During a discussion of the company's first-quarter results, Buffett said that Ajit Jain, head of Berkshire's insurance business, said, “I want everyone to point out that you can't quadruple insurance revenue in the first quarter.'' “That's never possible.” Please do so with your insurance. ”

    The company's insurance risks are spread across regions and types of disasters, but Buffett said major storms along the U.S. East Coast likely pose the company's biggest risk. The Atlantic hurricane season lasts from June to November.

  • Berkshire pays tribute to Charlie Munger

    For the first time, Berkshire Hathaway produced its annual shareholder video on Saturday (in advance of the annual meeting's question-and-answer session). This video features Charlie Munger's edits and some of his best quotes, and has become a staple at annual meetings and more. Appearing in public.

    Munger passed away in November 2023 at the age of 99.

    One of the Munger doctrines featured in the film is that Munger said at an earlier shareholder meeting, “If I can be optimistic when I'm about to die, the rest of us will probably survive some inflation.'' “I think I'll be able to withstand it,” he said.

    Munger says elsewhere that “the right way to make decisions in real life is based on opportunity costs. When you get married, you have to choose what's best for you. And the rest… It's the same with life,” he added. ”

  • Berkshire records record operating profit as Apple grows investment profits

    Ahead of Saturday's annual shareholder meeting, Berkshire Hathaway announced its first-quarter results, posting a record operating profit of $11.22 billion.

    Berkshire's operating profit reached $8.1 billion in the first quarter of last year.

    However, the company's investment income decreased significantly from the same period last year, to only $1.48 billion, compared to approximately $24.75 billion in the same period last year.

    Apple's (AAPL) drop of about 10% in the first quarter weighed on results here, as the tech giant accounts for about 40% of Berkshire's stock holdings.

    Berkshire also revealed in its first quarter report that it reduced its holdings in Apple in the first quarter. At the end of 2023, Berkshire's Apple position was worth $174.3 billion. At the end of the first quarter, this position was worth $135.4 billion.

    But at last year's annual meeting, Buffett took the time to remind investors that the stock doesn't actually represent this percentage of Berkshire's overall portfolio, which includes other wholly owned subsidiaries.

For the latest stock market news and in-depth analysis of price-moving events, click here.

Read the latest financial and business news from Yahoo Finance





Source link

Share.

Related Posts

Add A Comment
Leave A Reply