Berkshire Hathaway - I

| May 07, 2019
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Last weekend was the annual pilgrimage for value investors to Omaha, NE from the Berkshire Hathaway Annual Meeting.

I am going to have a series of entries recapping the salient points from the six hour sit down interview with Warren Buffett and Charlie Munger.

On Value Investing

Warren Buffett: The decision to buy Amazon’s stock was just as much based on value investing principles as a decision to buy a statistically cheap stock. Value investing is about estimating and valuing future cash flows, not about how low a Price to Book or a Price to Earnings ratio is for a stock.

Warren Buffett: You can pay too much for a wonderful business. There is a price where we could have paid too much for See’s Candies and it wouldn’t have worked out well as an investment. You can turn any investment into a bad deal by paying too much. What you can’t do is turn any investment into a good deal by paying a cheap price.

Warren Buffett: We are comfortable holding a lot of cash because we are operating on the assumption that we will have an opportunity to deploy it at very attractive rates.

Charlie Munger: Our problem in finding investments is that people are willing to pay higher prices than we are.

Warren Buffett: We could invest $100B in the next year, just not at the prices that we like. It is not in the interest of shareholders that we start behaving like everybody else.


Stay Tuned, Disciplined & Patient! {TJM}

The Investor & Character Equation (ICE) | S + R = O


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