CapriciousCapital Posted May 1, 2021 Share Posted May 1, 2021 13:30 - 13:45: Introductions, goes over summary figures, again reiterates operating earnings matter and ignore capricious swings in unrealized gains. Says a "maybe not unexpected" surprise will follow soon... Could it be a dividend? Link to comment Share on other sites More sharing options...
gfp Posted May 1, 2021 Share Posted May 1, 2021 I think his "surprise" in that context was that all 4 had at one time lived within a mile of each other in Omaha at one time or another Link to comment Share on other sites More sharing options...
CapriciousCapital Posted May 1, 2021 Author Share Posted May 1, 2021 Oh! You're right. Link to comment Share on other sites More sharing options...
Nomad Posted May 1, 2021 Share Posted May 1, 2021 Interesting comments on tech stocks - WEB just said that he doesn't see current FANG valuations as crazy. He was asked a question about tech valuations and rejected the premise that tech is overvalued. Munger also weighed in and said that Big Tech should not be broken up because it's an asset to our civilization. Link to comment Share on other sites More sharing options...
Nomad Posted May 1, 2021 Share Posted May 1, 2021 Munger on SPACs and gambling mindset prevailing in the markets: "It's not just stupid, it's shameful." Link to comment Share on other sites More sharing options...
gfp Posted May 1, 2021 Share Posted May 1, 2021 I loved his "I don't mind the poor fish who gamble". Oh Charlie Link to comment Share on other sites More sharing options...
Nomad Posted May 1, 2021 Share Posted May 1, 2021 Paraphrasing WEB: He's unhappy about not being able to put cash to work but sees no real good targets in current environment Link to comment Share on other sites More sharing options...
Lakesider Posted May 1, 2021 Share Posted May 1, 2021 "Buying stock we dont know a great deal about because we prefer them to treasury bonds." Same thing Charlie said about Baba. Link to comment Share on other sites More sharing options...
Nomad Posted May 1, 2021 Share Posted May 1, 2021 Munger: "Bernie Sanders has won...the Millennial generation is going to have a hell of a harder time getting rich than our generation...Bernie has won. He did it by accident, but he won." Link to comment Share on other sites More sharing options...
Nomad Posted May 1, 2021 Share Posted May 1, 2021 Munger on possible corporate tax increases: "We've adapted to the tax rate whatever it is." WEB: Taxes mean that the government holds "class AA" shares in Berkshire; they used to take 52% of corporate profits when I first started. Question is what would you pay to own a class AA interest in Berkshire? This class AA share is worth more if the tax rate is higher. Taxes are not passed on to the customer in many Berkshire businesses, and higher rates therefore do hurt BRK shareholders. Link to comment Share on other sites More sharing options...
CapriciousCapital Posted May 1, 2021 Author Share Posted May 1, 2021 Buffett: "If the government took a higher share of my inheritance, I don't think it would bother me..." Munger (cutting Buffett off): "I guarantee it wouldn't bother you." Link to comment Share on other sites More sharing options...
Nomad Posted May 1, 2021 Share Posted May 1, 2021 Ajit Jain: "In the insurance business, we often think of pandemic risk as one of the risk factors...pandemic risk was totally underpriced by all of us in the industry...We haven't done a good enough job of correlating the risk and aggregating the risk." Mentioned event cancellation risk stemming from pandemics (such as Olympics cancellation) not being appropriately priced. Link to comment Share on other sites More sharing options...
Nomad Posted May 1, 2021 Share Posted May 1, 2021 Ajit put up $1.6b in reserves for pandemic losses; number is likely to grow significantly Sees another $70b in industry losses from Covid-19 Link to comment Share on other sites More sharing options...
CapriciousCapital Posted May 1, 2021 Author Share Posted May 1, 2021 (edited) Earlier Buffett mentioned BRK has ~10-15% excess cash above what it'd like to have in terms of investing. He also mentioned it's only about 10% the asset value of BRK, so holding that much cash (liking the other 90% of BRK) doesn't bother him that much. Also earlier Buffett mentioned the rate-limiting step for BHE investment in power generation is transmission (limited by local factors, building through other people's land, etc). And that he'd like to reinvest more there. Edited May 1, 2021 by CapriciousCapital Link to comment Share on other sites More sharing options...
Nomad Posted May 1, 2021 Share Posted May 1, 2021 WEB on Precision Castparts: I paid too much in relation to average earnings; for example, GE doesn't need as many engines as we thought. WEB: "I'll continue making mistakes." Munger: "The rest of us will help." Link to comment Share on other sites More sharing options...
Nomad Posted May 1, 2021 Share Posted May 1, 2021 WEB on cryptocurrencies: "I'm going to dodge that question...I'm all right on that one." Munger: "Those who know me well are just waving the red flag at the bull. Of course I hate the Bitcoin success. I don't welcome a currency that's so useful to kidnappers and extortionists...the whole damn development is disgusting and contrary to the interests of civilization. And I'll leave the criticism to others." Link to comment Share on other sites More sharing options...
Nomad Posted May 1, 2021 Share Posted May 1, 2021 Ajit Jain on writing insurance for Elon Musk and SpaceX's mission to Mars: "No thank you, I'll pass." WEB: "I would say it depends on the premium, and I'd have a different rate if Elon was onboard vs. if he was not onboard [the rocket]" Link to comment Share on other sites More sharing options...
Nomad Posted May 1, 2021 Share Posted May 1, 2021 Greg Abel on Kraft Heinz: Strong manager and team is now in place and we are pleased with them and how they are reducing debt levels WEB: CEOs often go out and repeat things to the public that then become a catechism, and no one at the company can then go out and contradict them. This creates company path dependence and leads to "enormous errors." Hard to tell the story without giving examples but WEB doesn't want to criticize people by name. Munger: "What you prattle out all the time, you're pounding back in, even if it's wrong." Link to comment Share on other sites More sharing options...
Nomad Posted May 1, 2021 Share Posted May 1, 2021 WEB on the failure of Berkshire/AMZN/JPM joint venture to reduce healthcare costs: "We were fighting a tapeworm, and the tapeworm won." Link to comment Share on other sites More sharing options...
CapriciousCapital Posted May 1, 2021 Author Share Posted May 1, 2021 Munger: "We have a great culture, and Greg will keep the culture" Link to comment Share on other sites More sharing options...
Nomad Posted May 1, 2021 Share Posted May 1, 2021 WEB: Berkshire subsidiaries are seeing "substantial inflation" in input costs Link to comment Share on other sites More sharing options...
fareastwarriors Posted May 1, 2021 Share Posted May 1, 2021 Good meeting. Glad to see how sharp Buffett and especially Munger continues to be. Link to comment Share on other sites More sharing options...
omagh Posted May 1, 2021 Share Posted May 1, 2021 Some decent AGM notes... https://www.moomoo.com/en/news/post/4908363/the-2021-berkshire-agm-meeting-notes Link to comment Share on other sites More sharing options...
Spekulatius Posted May 2, 2021 Share Posted May 2, 2021 Transcript from tikr.com: https://app.tikr.com/stock/transcript?cid=255251&tid=2594156&ts=2266536&e=696911379&refCode=o94y6y# Link to comment Share on other sites More sharing options...
LearningMachine Posted May 2, 2021 Share Posted May 2, 2021 10 hours ago, Spekulatius said: Transcript from tikr.com: https://app.tikr.com/stock/transcript?cid=255251&tid=2594156&ts=2266536&e=696911379&refCode=o94y6y# Thanks @Spekulatius for sharing. Really helpful in understanding deeper what was said yesterday :-). Link to comment Share on other sites More sharing options...
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