At the Berkshire Hathaway annual meeting, Warren Buffett and Charlie Munger discussed the company's recent successes and failures. They noted that the stock market is mathematically unsound, but that many people are still willing to invest in it due to its potential for long-term gain. Buffett also discussed his early experiences in the stock market and how they've helped him develop his investing skills.
00:00:00 Warren Buffett and Charlie Munger discuss the Berkshire Hathaway annual meeting and the company's recent successes.
00:05:00 Warren Buffett and Charlie Munger discuss Berkshire Hathaway's performance in the past quarter and some other topics. They also mention that Berkshire has a female founder on its candy boxes, and that it has over 200 stores carrying its products. Buffett and Munger promise to give shareholders the same information at the same time, and to do so when stock markets are closed.
00:10:00 Warren Buffet and Charlie Munger release their annual report for the first quarter of 2022. The report contains no major surprises, with most of the income coming from cash flow rather than profits. Buffett and Munger discuss how they prefer to disclose information, and how they plan to continue to do so in the future.
00:15:00 Warren Buffett and Charlie Munger detail how they try to avoid losing money for their investors. They say that if they knew what the future would hold, they would not invest.
00:20:00 Warren Buffett and Charlie Munger discuss their thoughts on Berkshire Hathaway and its upcoming 2022 Annual Meeting. Buffett notes that they have spent a total of 40 billion in the past three weeks, most of which was spent on repurchasing shares. They also discuss their plans for Allegheny Court, which they plan to buy for over 11 billion.
00:25:00 This video features Warren Buffett and Charlie Munger discussing money. Buffett notes that the Federal Reserve now issues money, and that the only type of money you'll see in his lifetime is Federal Reserve notes. He also discusses how money is "the only thing that the IRS is going to take from you that you can you're going to offer them all kinds of things."
00:30:00 Warren Buffett and Charlie Munger state that if the Federal Reserve hadn't acted quickly in 2008, the United States would have been on the brink of a repeat of the 2008 financial crisis. Buffett also mentions the importance of having a Berkshire Hathaway subsidiary with the ability to handle quick financial emergencies.
00:35:00 Warren Buffett and Charlie Munger wrote a letter to Berkshire Hathaway shareholders in February 26, 2022, revealing that they had found "some things we preferred owning to treasury bills" and that they had decided to invest in Allegheny Corporation (a company they had been following for 60 years) due to its "interesting" history. The letter was sent on February 25, the day before Buffett received a note from a friend informing him that the man now responsible for Allegheny Corp. was his old colleague and friend Joe Corvo.
00:40:00 The speaker talks about how the stock market has been dominated by gambling in the past few years, and how this has affected Berkshire Hathaway's decision-making process. He also reminds listeners that Berkshire Hathaway is a long-term investor and that it doesn't rely on short-term stock market fluctuations to make money.
00:45:00 In February of 2022, Charlie Munger and Warren Buffett began buying stock in Occidental Petroleum Corporation, a large oil company. This investment paid off when, in two weeks, they bought 14% of the company. This move enabled them to get a preferred stock and warrants in the company.
00:50:00 The video is a lecture by Warren Buffett and Charlie Munger on Berkshire Hathaway's preferred stock. At the end of the March quarter 2020, Berkshire valued the 10 billion worth of preferred stock at five and a half billion, resulting in a four and a half billion loss. Buffett notes that the world has changed and oil sold for less than 37 US dollars a barrel one day, which has resulted in Berkshire exiting the oil business. Buffett and Munger discuss the country's progress and the success of the system, which has been accomplished despite the "gambling" of some people.
00:55:00 This video discusses Berkshire Hathaway's annual meeting, which took place on April 30, 2022. At the meeting, Warren Buffett, Charlie Munger, and other Berkshire Hathaway executives discussed the company's recent successes and failures. One of the main points made was that, even though the stock market is mathematically unsound, many people are still willing to invest in it due to its potential for long-term gain. Buffett also discussed his early experiences in the stock market and how they've helped him develop his investing skills.
At the 2022 Berkshire Hathaway annual meeting, Warren Buffett and Charlie Munger discuss their company's competitive advantages, their approach to investing, and how they have never tried to predict economic trends. They also mention the risk of nuclear war and how Berkshire Hathaway has taken steps to protect itself.
01:00:00 Warren Buffett and Charlie Munger discuss Berkshire Hathaway's practice of buying entire companies outside of the United States, and how they try to get interested parties to sell their companies to Berkshire. They estimate that Berkshire has spent "at least five billion" on such acquisitions over the past two decades.
01:05:00 Warren Buffett and Charlie Munger discuss their approach to buying businesses, which is to look for ones with good management and a positive outlook on the future. They also mention their experience buying businesses in Germany and Japan.
01:10:00 Charlie Munger and Warren Buffett discuss how Berkshire Hathaway's operations can be anywhere and how they are good investments because of their size and lack of overhead. They also discuss how Berkshire Hathaway has been able to grow its ownership in American Express without putting up any money and how it is important to hold on to a business for as long as possible in order to get the highest return on investment.
01:15:00 Warren Buffett and Charlie Munger discuss the 2022 Berkshire Hathaway annual meeting in which they state that they will treat shareholders the same, regardless of their wealth. They also mention a letter they received requesting a meeting with them to discuss governance and sustainability. Buffett argues that this would be a waste of time, as shareholders can discuss these topics with him directly.
01:20:00 The speaker discusses Berkshire Hathaway's approach to competition, noting that they focus on their customers and strive to be efficient and effective. They also mention that they have a great leadership team and are proud of their assets.
01:25:00 Berkshire Hathaway's Charlie Munger and Warren Buffett discuss the competitive nature of the personal automobile insurance business, Progressive's recent growth, and the company's efforts to use telematics to better segment and match rates.
01:30:00 The largest auto insurance company in the United States is Progressive. Charlie Munger points out that it is a mutual company, and that it should not exist under capitalism. Mutual companies have a long history of success, and Berkshire Hathaway is the largest shareholder in Progressive.
01:35:00 Warren Buffett and Charlie Munger discuss their approach to investing and how they don't rely on predictions about the stock market. Buffett cites his experience with buying stocks at a "dumb time" and the role of learning in decision-making.
01:40:00 Warren Buffett and Charlie Munger discuss how Berkshire Hathaway has never timed the stock market or tried to predict economic trends, and how it's better to just invest in American businesses and avoid risky investments.
01:45:00 Warren Buffett and Charlie Munger talk about the unpredictability of rewards, and how people can still do well despite not working for change.
01:50:00 The speaker discusses the risk of nuclear war and how it applies to Berkshire Hathaway insurance. He also mentions that Berkshire Hathaway has taken steps to protect itself from physical and cyber attacks.
01:55:00 In August 1939, a letter was sent to President Franklin Roosevelt about a potential threat to America from Germany. The letter was sent by Einstein, one of the scientists driven out of Germany. The letter warned of a possible nuclear attack, and it is thanks to this letter that the United States developed the atomic bomb before any other country.
In his speech at the 2022 Berkshire Hathaway Annual Meeting, Warren Buffett and Charlie Munger discuss the company's culture and how it will remain dominant for many years to come. They emphasize the importance of trust and continuity within the Berkshire Hathaway culture, which has been passed down from one generation to the next.
02:00:00 Warren Buffett and Charlie Munger discuss Berkshire Hathaway's lack of interest in investing in nuclear weapons and the potential for other disasters, such as earthquakes or cyberattacks. They caution that even if Berkshire Hathaway is not directly affected, the insurance industry may be.
02:05:00 Warren Buffett and Charlie Munger discuss the risk of cyberattacks and how Berkshire Hathaway is working to mitigate them.
02:10:00 Warren Buffett and Charlie Munger talk about how they approach life and the importance of having a good skill set. They also mention the importance of saving for retirement and avoiding investing in bitcoin.
02:15:00 Warren Buffett and Charlie Munger discuss Berkshire Hathaway's long-term outlook and how shareholder intrinsic value is maintained. Buffett emphasizes the importance of having a supportive board of directors, and how the company's culture and history will ensure its success.
02:20:00 In his 2022 Berkshire Hathaway Annual Meeting speech, Berkshire Hathaway CEO Warren Buffett and Vice Chairman Charlie Munger discuss the company's culture and how it will remain dominant for many years to come. They emphasize the importance of trust and continuity within the Berkshire Hathaway culture, which has been passed down from one generation to the next.
02:25:00 Warren Buffett and Charlie Munger discuss their early career successes and failures. Buffett recommends that investors learn from their mistakes and keep learning, even if it takes a long time to reap rewards.
02:30:00 Warren Buffett and Charlie Munger discuss the importance of reading and learning, and the importance of recognizing when one has been looking at stocks the wrong way. Buffett mentions an experience he had in Lincoln, Nebraska, where he realized that he was looking at stocks the wrong way and changed his entire approach to investing.
02:35:00 Warren Buffett and Charlie Munger discuss how it's important to be kind to others, even if it doesn't always pay off in terms of making money. They also mention how it's important to be perceptive and correct one's own mistakes, as this is how one learns and improves.
02:40:00 Warren Buffett and Charlie Munger discuss the importance of engagement in the political realm, concluding that Berkshire Hathaway will not take a stance on certain issues in order to avoid alienating its customer and employee base.
02:45:00 The video discusses Berkshire Hathaway's policy of electing directors who represent different viewpoints in order to maintain consistency and avoid pressure from them to take positions. Charlie Munger comments that he is even more careful about what he says because he doesn't want to be associated with any one perspective. David Cass asks whether Buffett would be affected by a tax threshold of $100 million, and Munger and Buffett say they would both be affected. Munger adds that Berkshire Hathaway does not operate as a political tool and that managers should not pressure suppliers to do what they want.
02:50:00 Warren Buffett and Charlie Munger discuss the disadvantages of investing in stocks when inflation is high. They recommend investing in bonds to protect against inflation swindles.
02:55:00 In his 2022 Berkshire Hathaway Annual Meeting speech, Warren Buffett discusses how inflation affects businesses and investors. He also discusses how to protect against inflation.
At the 2022 Berkshire Hathaway annual meeting, Warren Buffett and Charlie Munger discussed the company's history, their thoughts on the current state of the economy, and how inflation has impacted businesses. They also discussed the importance of float and how it affects the company's ability to issue shares and repurchase them.
03:00:00 Warren Buffett and Charlie Munger discuss the importance of creating a shareholder culture that encourages long-term investment. They note that this is easier to do than many people believe, and that it is important for CEOs and representatives to be open about why their company's policies are important to the overall success of the company. The video ends with Buffett joking that he will no longer be hosting the Berkshire Hathaway Annual Meeting in Omaha in 2022, as the number of shareholders has decreased since he last spoke.
03:05:00 Warren Buffett and Charlie Munger discuss the importance of maintaining a culture of honesty and integrity in business, and how it is essential to the success of a company. They also discuss Berkshire Hathaway's history of success and how its culture will continue to be valuable after they are gone.
03:10:00 In 2022, Berkshire Hathaway CEO Warren Buffett and Chairman Charlie Munger discuss the company's past practice of adjusting book value to match sales, and Buffett's prediction that this will become a widespread practice. They also discuss the company's acquisition of Activision Blizzard, which Buffett says was done for a different purpose than originally intended and which resulted in Activision becoming a different security. Finally, Buffett discusses the current state of the world economy and his reluctance to invest in certain securities.
03:15:00 In 2022, Charlie Munger and Warren Buffett discussed the growth of passive investing and index funds. Munger noted that index funds are a good way to diversify a portfolio, and Buffett added that index funds have helped to make the stock market more efficient.
03:20:00 Warren Buffett and Charlie Munger discuss the increasing prevalence of passive investment vehicles and their effects on corporate governance. They argue that passive investing is a good thing, and that the only way to prevent the large index funds from controlling companies is for politicians to change the rules governing investment company management.
03:25:00 Warren Buffett and Charlie Munger discuss Berkshire Hathaway's energy business and how it is structured relative to other investments the company has made. Buffett shares that Berkshire Hathaway Energy is required with its regulated utilities, which gives the company a leg up in the competition. Munger shares that Berkshire Hathaway Energy would like to buy more regulated utilities, but they would need to follow the rules set by the regulator.
03:30:00 Buffett and Munger discuss the difficulties that can arise when an individual has direct control over a publicly-traded company, and how Berkshire Hathaway has managed to avoid such conflicts. They also mention that Berkshire Hathaway has a majority ownership in a number of energy companies, and that if something happened to the Scott family's shareholding, Buffett would be willing to sell it to Greg Scott if he so desired.
03:35:00 Warren Buffett and Charlie Munger discuss Berkshire Hathaway's insurance float and repurchase program. They discuss the importance of float and how it affects the company's ability to issue shares and repurchase them. Buffett also discusses Berkshire's insurance businesses.
03:40:00 This video clip from Berkshire Hathaway's 2022 Annual Meeting provides a brief history of Berkshire Hathaway and Charlie Munger's thoughts on the company's success. Munger and Buffett state that the company's success is due to their ability to make "hard decisions" and their "love" of Berkshire Hathaway's float. Buffett also shares his thoughts on how Geico came to be a part of Berkshire Hathaway and how he plans to keep the company running.
03:45:00 At the 2022 Berkshire Hathaway annual meeting, Charlie Munger discusses how inflation has impacted the prices of Berkshire Hathaway businesses, saying that it has been a common trend throughout the U.S. economy and that American businesses and citizens can do something to reduce the negative impacts of inflation.
03:50:00 Warren Buffett and Charlie Munger discuss how inflation has impacted businesses and how people have responded to this by buying more goods and services. They note that although cash is becoming less common, there are still enough people in the United States with currency to cause problems for the Federal Reserve.
03:55:00 In 2022, the U.S. government sent out a million dollars to every household in the country as part of an effort to stimulate the economy. This money raised prices, as people scrambled to buy what they could before it all disappeared. However, over time, people began to understand the scheme and started anticipating the cash injections, leading to a boom in the jewelry industry.
In this video, Warren Buffett and Charlie Munger discuss the 2022 Berkshire Hathaway Annual Meeting, their thoughts on bitcoin and other cryptocurrencies, and their advice on pursuing a passion and finding one's calling. They warn that oil production could soon drop below 85 million barrels and suggest the US should take measures to address the situation. Finally, they discuss Berkshire Hathaway's philosophy on buying back stock.
04:00:00 In this video, Berkshire Hathaway CEO Warren Buffett and Vice Chairman Charlie Munger discuss the importance of maintaining trust in one's company. They discuss the challenges Berkshire Hathaway has faced in the past, and Munger predicts that the company will continue to do well in the future.
04:05:00 Warren Buffett and Charlie Munger discuss the 2022 Berkshire Hathaway Annual Meeting, discussing the difficulties of creating rules that prevent shareholders from manipulating the numbers in their financial reports. Buffett advises using the SEC as a model for how to operate an audit committee, praising their work in the past.
04:10:00 Warren Buffett and Charlie Munger discuss the accounting at Berkshire Hathaway, and Buffett admits that he is glad he testified earlier in Congress so that he could have answered any questions about the matter. Buffett also says that one thing he would like to see changed is the way contracts are valued.
04:15:00 Warren Buffett and Charlie Munger discuss their opinion on the proposed Berkshire Hathaway purchase of Allegheny County Court for $848,000. Buffett reminds Munger that the first time Berkshire Hathaway needed a fairness opinion was in 1978, when they purchased a company with two different groups of shareholders. Munger agrees that the shareholders will benefit from the merger, but insists that a majority of shares be voted in support by other shareholders. Buffett reminds Munger that he committed to the other shareholders, and that he will only vote in favor of the merger if a majority of shares are voted in favor by Allegheny County Court's other shareholders.
04:20:00 Warren Buffett and Charlie Munger recommend paying an investment banker for a fairness opinion, which can cost up to 60,000 dollars.
04:25:00 In 1962, Charlie Munger advised a client to raise the stakes in their insurance claim against a company in order to make the game more fair. Buffett discusses this experience with Munger, and how it's not worth pursuing a 12,000 dollar claim against a company when employees will still receive their regular paycheck. Munger recommends making the claim a multiple of 10,000, so it would be 120,000 dollars.
04:30:00 In this video, Warren Buffett and Charlie Munger discuss their thoughts on bitcoin and other cryptocurrencies. Buffett notes that he is conflicted about the subject because his views have evolved over the past two years, from thinking bitcoin was a fraud and waste to believing that it might have some uses. Munger says that if everyone in the room owned all of the farmland in the United States, Buffett would still be able to make a profit by selling it back to them. Munger also notes that some things have value that don't produce anything tangible, such as a great painting.
04:35:00 Berkshire Hathaway's Charlie Munger discusses the idea that people are now behaving more tribal, and how this could have negative consequences for the United States. Munger believes that bitcoin is "stupid," "evil," and "foolish," and advises people not to invest in it.
04:40:00 Warren Buffett and Charlie Munger share advice on pursuing a passion and finding one's calling. Buffett recalls how he became interested in investing and relates his father's role in his decision. Munger shares his experience of growing up in California and having to navigate a partisan and gerrymandered legislature. Buffett and Munger discuss the importance of having a calling and the importance of finding a business that is not the individual's "interests."
04:45:00 Warren Buffett and Charlie Munger warn in their 2008 annual Berkshire Hathaway shareholder meeting that oil production could soon drop below 85 million barrels, a prediction that has come true in the fourteen years since. They suggest the US should take measures to address the situation, but ultimately think that it is up to individuals to find their passions and devote their lives to those pursuits.
04:50:00 Warren Buffett and Charlie Munger discuss the rationale behind Berkshire Hathaway's buyback program, which has averaged 3 billion per month over the past two years. They note that the rate of buybacks is influenced primarily by the stock's trading price and intrinsic value.
04:55:00 Charlie Munger and Warren Buffett discuss Berkshire Hathaway's philosophy on buying back stock. They note that Berkshire Hathaway has bought back stock in the past, but will not do so in the future if it is seen as risky. Munger also speaks about Henry Singleton, a Berkshire Hathaway shareholder who purchased stock over a long period of time, and how it helped him accumulate a large stake in the company.
At the 2022 Berkshire Hathaway annual meeting, shareholders will vote on a proposal asking the company to commence climate-related risk reporting. The company has disagreed with the proposal but has not shared its reasoning. The parent company has recently begun engaging with the co-sponsors of the proposal, but these changes do not address what last year's non-insider majority supported.
05:00:00 Dave Shane from Brooklyn, NY asks Warren Buffett if he will be able to make decisions without board approval in the future, and Buffett responds that the board will likely put some restrictions on his decisions or consult with him more than they do with him currently.
05:05:00 Warren Buffett and Charlie Munger discuss the importance of directors getting paid, and why it's important for directors to be independent. Buffett recalls receiving a letter from a desperate director asking for money to help him pay his board fees. Buffett points out that, even though he no longer sits on the board of Coca-Cola, he still cares about the company's future.
05:10:00 Warren Buffett announces that the 2022 Berkshire Hathaway annual meeting will be held in Omaha, Nebraska, instead of Boston, Massachusetts, due to the current rules around independence for directors. He also announces that the number of votes shareholders have represented at the meeting is sufficient to proceed with the meeting.
05:15:00 The four proposals set forth in the proxy statement that can be accessed at Berkshire Hathaway's website are discussed. The first proposal, which the directors have recommended shareholders vote against, would separate the roles of chairman and CEO at Berkshire. The second proposal, which would place Berkshire Hathaway under the control of corporate America's "assault on American institutions and culture," is met with opposition from Warren Buffett and Charlie Munger. The third proposal, which requests that Berkshire adopt a policy requiring the chair of the board of directors to be an independent member, is also met with opposition. The fourth proposal, which suggests that Berkshire stop investing in businesses that are critical of capitalism, is voted down.
05:20:00 The proposal seeks to have Berkshire Hathaway publish an annual assessment addressing how the company manages physical and transitional climate-related risks and opportunities. Despite the proposal receiving a majority of votes in favor, it failed to pass due to the number of votes against exceeding the number of votes in favor.
05:25:00 At its 2022 Berkshire Hathaway Annual Meeting, shareholders will vote on a proposal asking the company to commence climate-related risk reporting. The company has disagreed with the proposal but has not shared its reasoning. The parent company has recently begun engaging with the co-sponsors of the proposal, but these changes do not address what last year's non-insider majority supported.
05:30:00 The video discusses Warren Buffett's letter, in which he discusses climate risk and urges shareholders to support parent company climate risk disclosures starting before the 2023 annual meeting. The video also discusses how public pensions are a constituency that Berkshire Hathaway should be worried about, as they may become insolvent if they don't get their pension checks.
05:35:00 In 1991, the Federal Reserve and Treasury Department decided that they had made a mistake in how they had conducted their business, and they reversed themselves. This book, "T trillion-dollar triage," tells the story of this period.
05:40:00 Warren Buffett and Charlie Munger discuss how Berkshire Hathaway borrowed money against government bonds in order to keep operating during a solomon run, and how John McFarlane, the treasurer, stayed at the downtown offices near Solomon's office in order to try to raise money to pay people. The Federal Reserve and Treasury didn't want the run to get out of hand, but they couldn't give Berkshire Hathaway the money it needed. Calpers, a big lender to Berkshire Hathaway, decided to stop doing business with the company, precipitating the run. Berkshire Hathaway was able to negotiate a deal with Calpers in which they would reconsider their position if Berkshire Hathaway corrected a mistake made in a proposal to the Federal Reserve. The majority of shareholders at Berkshire Hathaway were in favor of a similar resolution, but the proponents' assertion that it was a significant majority was incorrect.
05:45:00 Warren Buffett and Charlie Munger discuss shareholder resolutions at the Berkshire Hathaway annual meeting, noting that some proposals have no meaning and that most CEOs want virtual meetings instead of face-to-face interactions with shareholders.
05:50:00 The video discusses Berkshire Hathaway's proposal to measure, disclose, and reduce greenhouse gas emissions from its insuring and investing activities. The proposal was voted down by shareholders.
05:55:00 The video talks about the many events that have occurred recently that are indicative of climate change, such as fires in California and Colorado, floods in the Midwest, and hurricanes. It also mentions the increasing risk and costs of climate change. The video concludes by saying that the motion to approve Warren Buffett's $100 million donation to the UN's climate fund has failed because it did not receive the required majority of votes from shareholders.
The YouTube video discusses Berkshire Hathaway's annual meeting, which took place on April 30th. The meeting was attended by Warren Buffett and Charlie Munger, and the voting results were announced. The proposal to replace directors with nominees voted against by shareholders was rejected, and the meeting was adjourned.
06:00:00 The speaker presents a proposal asking for Berkshire Hathaway to report on the outcomes of its diversity equity and inclusion efforts, including publishing quantitative data on workforce composition and recruitment retention and promotion rates by gender, race, and ethnicity. The speaker urges shareholders to vote against the proposal, as the statistics for American companies are unacceptable.
06:05:00 The video discusses Berkshire Hathaway's annual meeting, which took place on April 30th. The meeting was attended by Warren Buffett and Charlie Munger, and the voting results were announced. The proposal to replace directors with nominees voted against by shareholders was rejected, and the meeting was adjourned.
06:10:00 The video discusses Berkshire Hathaway's 2022 annual meeting and its chairman, Warren Buffett, and vice chairman, Charlie Munger. The two discuss the company's upcoming prospects and how they plan to continue expanding its operations. The meeting concludes with a motion to adjourn.