David Williams Bloomberg
Image: David Williams - Bloomberg

Berkshire Hathaway’s Annual Shareholder Meeting is one of the most highly anticipated events in the investing world, and this year’s meeting did not disappoint. Led by Warren Buffett and Charlie Munger, the meeting provided valuable insights into the company’s performance and plans for the future. We rounded up some key takeaways from the meeting:

The Importance of Long-Term Investing:

Warren Buffett and Charlie Munger stressed the importance of taking a long-term approach to investing. According to them, the best returns are achieved by investing in quality companies and holding onto them for years, if not decades. In his annual letter to shareholders, Buffett wrote, “Our stay-put behaviour reflects our view that the stock market serves as a relocation centre at which money is moved from the active to the patient.”

Focus on Quality Businesses:

Buffett emphasized the importance of investing in high-quality businesses with durable competitive advantages. He also warned against investing in companies with weak balance sheets or unstable earnings. “We don’t want to own a business that’s subject to rapid and constant change,” he said. “We prefer to buy a business that is easy to understand and easy to run.”

The Future of Berkshire Hathaway:

When asked about the future of Berkshire Hathaway, Buffett and Munger were confident in the company’s ability to continue delivering strong returns. They also hinted at potential acquisitions in the future, stating that they are always on the lookout for new opportunities. “We’ll do better in the next 50 years than the last 50 years,” Buffett said.

Embrace Innovation:

Buffett acknowledged the importance of innovation in today’s world and praised the technological advancements made by companies such as Apple and Amazon. He also revealed that Berkshire Hathaway has invested in several technology companies over the past year, including cloud computing company Snowflake and fintech firm Paytm.

The Importance of Risk Management:

Both Buffett and Munger stressed the importance of managing risk in investing. They emphasized that investors should only take on risks that they are comfortable with and should always consider the worst-case scenario. “The biggest risk is not being willing to take one,” Munger said. “The most extreme risk is not taking one at all.”

Overall, this year’s Annual Shareholder Meeting provided valuable insights into the investment philosophy and approach of one of the most successful companies in the world. By following the principles outlined by Warren Buffett and Charlie Munger, investors can position themselves for long-term success. At Global Masters Fund, we strive to apply these principles to our investment strategy and believe they are the key to generating strong returns over time. We believe that by investing in high-quality businesses with durable competitive advantages, embracing innovation, taking a long-term approach, and managing risk, investors can build a portfolio that delivers consistent and sustainable returns over the years.