Every year at the Berkshire Hathaway Warren Buffett and Charlie Munger provide great insights on investing and the economy. Here are some thought from today - Buffett to investors: Think small
“We would be very happy if we earned 10%, pre-tax” on the additions to Berkshire’s equity portfolio, said Buffett. “Anyone that expects us to come close to replicating the past should sell their stock; it isn’t going to happen. We’ll get decent results over time, but not indecent results.” Added Munger: “You can take what Warren said to the bank. We are very happy at making money at a rate in the future that’s much less than the past… and I suggest that you adopt the same attitude.”
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“Overall I think that the U.S. continues to follow policies that will make the dollar weaken against other major currencies
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Asked what’s in store for the economy, Buffett said he doesn’t have a clue and doesn’t care. “I haven’t the faintest idea,” he said. “We never talk about it, it never comes up in our board meetings or other discussions. We’re not in that business [of economic forecasting], we don’t know how to be in that business. If we knew where the economy was going, we’d do nothing but play the S&P futures market.”
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In terms of the [chief] investment officer, the board has four names, any one or all of whom would be good at my job. They all are happy where they are now [working outside of Berkshire], but any would be here tomorrow if I died tonight, they all are reasonably young, and compensation would not be a big factor…. There will be no gap after my death in terms of having someone manage the money.
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“Overall I think that the U.S. continues to follow policies that will make the dollar weaken against other major currencies
…
Asked what’s in store for the economy, Buffett said he doesn’t have a clue and doesn’t care. “I haven’t the faintest idea,” he said. “We never talk about it, it never comes up in our board meetings or other discussions. We’re not in that business [of economic forecasting], we don’t know how to be in that business. If we knew where the economy was going, we’d do nothing but play the S&P futures market.”
…
In terms of the [chief] investment officer, the board has four names, any one or all of whom would be good at my job. They all are happy where they are now [working outside of Berkshire], but any would be here tomorrow if I died tonight, they all are reasonably young, and compensation would not be a big factor…. There will be no gap after my death in terms of having someone manage the money.
Related: Live From Omaha 2007 - Buffett’s 2008 Letter to Shareholders - 2005 annual meeting with Buffett and Munger - Why Investing is Safer Overseas
Berkshire Hathaway Holds $4 Billion of Auction-Rate Securities
Billionaire Warren Buffett’s Berkshire Hathaway Inc. has spent $4 billion investing in the municipal auction-rate bond market, taking advantage of payouts that topped 10 percent after regular bidders fled the market.
Warren Buffett: worst of the global credit crunch is over
Buffett said: “The worst of the crisis on Wall Street is over. But in terms of people with individual mortgages, there’s a lot of pain left to come.” Berkshire’s vice-chairman, Charlie Munger, said the credit crisis made Enron “look like a tea party”.
Munger fields that one: “The policy of turning American corn into motor fuel is one of the dumbest ideas in the history of the world.” The crowd–remember we’re in Nebraska–erupts in appluase. “This idea is so dumb.” says Munger, “I think it’s probably on it’s way out.”