Before diving into the highlights from the event, it’s worth noting some key facts about Berkshire Hathaway:
Share Price: A single share of Berkshire Hathaway, valued at $620,000 (approximately Rs. 5.2 crore), is the most expensive share in the world.
Cash Reserves: The company holds $190 billion in cash and cash equivalents, an amount greater than the combined cash reserves of all Indian listed companies.
Daily Earnings: Berkshire generates almost $100 million daily.
Global Ranking: Berkshire Hathaway is the sixth largest publicly traded company in the world.
Earlier this month, we travelled to Omaha, Nebraska, to attend the Annual General Meeting of Berkshire Hathaway and listen to the investing legend, Warren Buffett, share his insights on investing and life.
The event was a profoundly insightful and motivational experience, attracting 30,000 attendees from around the globe, including notable figures like Bill Gates (Founder of Microsoft) and Tim Cook (CEO of Apple), as well as fund managers from some of the world’s largest hedge funds.
We met many investors who have made the pilgrimage to Omaha annually for the past 30-40 years. A lot of investors were keen to know more about India and its growth story.
From taxi drivers to business owners, everyone had praise for Warren Buffett in Omaha. Many were early investors in his company and have significantly benefited from his remarkable track record, which saw a single share of Berkshire Hathaway grow from $19 (in 1965) to $620,000 (approximately Rs. 5.2 crore) today. A police officer we spoke to mentioned that he was able to retire 15 years early thanks to Buffett’s guidance.
The meeting was scheduled for 8 AM, but eager investors began queuing outside the CHI Health Center as early as 4 AM to secure the best seats and catch a glimpse of Buffett. Each year, a 30-minute film is shown before the event starts. This year, the film paid tribute to Warren’s longtime friend and business partner, Charlie Munger, who passed away at 99 in Nov 2023.
Following the film, Buffett discussed Berkshire Hathaway’s financials and answered questions from investors, imparting his vast wisdom. Here are some of the key insights he shared:
Buffet on investing
Successful investing is all about having a few very big winners
If you understand businesses, you understand stocks
The power of compounding is the most underrated power in the world
Don’t try to time the market
The best time to sell a wonderful company is (almost) never
Apple is Berkshire’s largest holding and Berkshire is Apple’s largest institutional investor: Apple is a very high-quality business to Buffett and Berkshire plans to own it for a long time
The impact of AI on human society – both good and bad – is yet to be seen
The transition from fossil fuels to renewable energy will take time and currently, it’s not possible to transition completely away from fossil fuels
On the importance of asset allocation – maintaining $189 billion cash pile: “It wasn’t that people didn’t have money in 2008. It’s that they were paralyzed. And we did have the advantage of having some capital and eagerness even to act, and a government that, in effect, looked at as us as an asset instead of a liability.”
Getting extraordinary results in the long-term is not easy, but getting decent results is, if your behaviour is right
Distribution businesses are not wonderful businesses, but they can perform really well if there’s a great manager at the helm
Positive on India: There are unexplored and unattended opportunities in India
Buffet on life
Kindness is free
Buffett has signed the “The Giving Pledge, ”committing 99% of his wealth to philanthropy.
Biographies are a wonderful way to have conversations with great people from the past
Figure out who you want to spend the last day of your life with, and meet them often
Having the resources and the will to act when everyone else does not is a great advantage
If you’ve been lucky in life, help pull up others too
Always surround yourself with people you look upto and trust
He has read ‘The Intelligent Investor’ by Benjamin Graham at least five times.
