Warren Buffett and Charlie Munger’s Golden Sentences from the 59th Berkshire Hathaway Annual Shareholders’ Meeting
On May 6, the 59th Berkshire Hathaway Annual Shareholders’ Meeting was held in Omaha, Nebraska, USA. The 93-year-old CEO Warren Buffett and the 99-year-old vice chairman Charlie Mun Ge frequently made golden sentences in the question-and-answer session of the shareholders’ meeting, which brought a lot of inspiration to the investment community.
“Don’t make any emotional investments.”
Munger believes that doing value investing will become more difficult, because more and more value investors are competing for fewer and fewer opportunities today. Therefore, his advice to value investors is to get used to making as much money as they used to.
Buffett has a more positive and optimistic investment mentality. He said: “Opportunities come from other people doing stupid things…and more and more people are doing stupid things now.” For investors, he advises against making any emotional investments and has A long-term perspective remains key to realizing value in investing.
“Be skeptical of some of the hype around AI.”
For the hot artificial intelligence, Munger is skeptical. He first affirmed it: “If you go to BYD’s factory in China, you will see robots everywhere. The usage rate is really high, so I think the use of robots will increase globally.” Then, He changed the subject: “But I’m personally skeptical of some of the hype around artificial intelligence. I think old-fashioned intelligence work works pretty well.”
Buffett believes that artificial intelligence can help screen stocks that meet certain parameters, but it has limitations and probably won’t tell us which stocks to buy. It may change the face of the globe, but it cannot change human thought and behavior.
“It’s a joke to think of tokens as world reserve currencies.”
Buffett emphasized that even if people lose confidence in the US dollar, Bitcoin is unlikely to shine. In his opinion, it is a joke to regard tokens as the world’s reserve currency. Previously, he also said that buying Bitcoin is a speculative gamble, not a real investment, and that encrypted digital currencies will definitely have a “bad ending.”
“Sometimes portfolio diversification is ‘degrading.'”
Sometimes, Munger notes, portfolio diversification is “degradation.”
“One of the ridiculous things taught in modern college education is that for common stock investing, you have to be broadly portfolio. It’s not easy for an investor to easily identify a large number of good opportunities. If I only had 3 opportunities, I’d rather choose my Best idea, not my worst.”
But he adds: “If you’re reasonably aware of the boundaries of your capabilities, then you should ignore most of what our experts say about portfolio ‘deterioration.”
“Most business earnings are expected to be lower going forward.”
Buffett said that the “incredible (surge) period” of the U.S. economy is coming to an end, and most business earnings are expected to be lower in the future. He is not particularly optimistic about tomorrow, next year, or the future. Inflation is the most important problem to be solved at the moment. Printing money all the time is crazy and cannot continue to do so.
