As Warren Buffett has become mainstream, it is now easy to confuse the forest and the trees of the headlines. I made my first trip to the annual meeting of Berkshire Hathaway in 2008 and have been to the event seven times in total. Going back to Omaha is not so much about learning something new, but to be reminded of the important bits that I forget in between.
Highlights from the livestream.
One of the payoffs of going to Omaha and observing how Warren and Charlie make it through six hours of live Q&A: You get an understanding that the power of your brain does not diminish as long as you exercise it.
The meetings are now being streamed live: Yahoo Finance. The full coverage is seven hours. Few people will make it through, here are a couple of highlights.
16:00 mins: the Prerecorded interview with Warren, talking about bitcoin, and wanting to be remembered as a teacher. More than his track record, his desire to teach makes listening to Warren much more valuable than listening to the many self-proclaimed value investors and often imitators.
50:00 min: Warren gives one of his great lectures on investing. Worth watching the newspaper clippings and then how he explains what would have become out of 10,000 $ invested in the S&P in 1942, when bad news was at its peak, as opposed to buying gold.
Key takeaways from this year
In content, I did not get as much out of it as in some previous ones after the financial crises. This time, I noted some long-term optimism about China as a system. Also notable: a surprising absence of any political agenda, even when pushed by questions from the audience. Buffett insisted on separating his personal views from the business.
It is worth to invert: What did not happen at this meeting nor at any other: Warren Buffett does not talk about succession plans. More generally, as I started digging deeper into this in recent and earlier interviews and speeches, I noted the many references how much he enjoys painting his own painting. But also references to people who never stop working like the CEO of flight safety, who ran the company at age 85, or his anecdotes about Rose Blumkin, who died at age 104, after stopping to work for Nebraska Furniture Mart at 103. You can also see the reference in the “Berkshire System” as laid out in Charlie’s letter to Berkshire shareholders here: There is no age limit for managers.
As now there is way too much about Buffett and Munger (any news outlet do their own ill reflected click baits, there are more than 100 books about Munger), let me list some of my top references:
The best Interviews and speeches:
- Warren Buffett: advice for students: Lincoln University Speech from 2015
- Warren Buffet: the best speech about leadership and how he runs his business the probably this video from 2003.
- Charlie, of course, is amazing when he gets to speak and there are a lot of good ones on youtube. I like the recent ones best. Watch from Minute 23 onwards here in 2017, where he goes on about doing something that you enjoy doing.
The essence of Charlie Munger and Warren Buffett in writing:
Many of the books about Buffett and Munger obscure more than they reveal: As both are very good communicators, it is always a good idea to read the source:
- The essence of Berkshire Hathaway:
Special Letters to the Shareholders, the present, the past and the future As they’ve written both their versions, you get two very different approaches.
- The essence of Charlie Munger. Charlie has been quoted and quoted again, and I think his unique approach to critical thinking is the consistent theme. This is best visible in his 1995 speech The psychology of human misjudgement, which is also the centrepiece of his own book “Poor Charlie’s Almanack”.
- The essence of Warren Buffett is more difficult to pin down into one core piece. But in his original writing: The Superinvestors of Graham and Doddsville from 1984. Buffett essentially proves that value investing works. This was before value investing became super hyped. Since then Buffett has evolved many times over.
Some of the blogs that I enjoy most:
- Farnam Street Shane Parrish fs.blog
- 25iq by Tren Griffin: 25iq.com