Each year, the annual general meeting of Berkshire Hathaway is a highly anticipated event.

Investors and enthusiasts eagerly await this event, as it provides a unique opportunity to gain valuable insights from two of the most successful investors in history: Warren Buffett and Charlie Munger.

During the meeting, Buffett and Munger discussed various economic factors affecting the current market, and their opinions on the current state of the economy were insightful as always.

We have summarized their key highlights and takeaways from the meeting held May 6, 2023.

1. Get used to making less

   1. The incredible period for the US economy is coming to an end. Charlie Munger was pessimistic in saying, ‘I think investors are going to have a harder time now that there are so many of them competing for a diminished set of opportunities. So, my advice to value investors is to get used to making less.’

2. Buffett is an Apple fan

   1. Apple accounts for nearly 40% of Berkshire Hathaway portfolio. He said, ‘it just so happens to be a better business than any other business we own.’

3. Buffett is bullish on oil

   1. Berkshire owns approximately 210 million Occidental Petroleum shares worth $12.8 billion which is almost a quarter of the outstanding Occidental stock or 3.8% of Berkshire’s portfolio.

4. The banking crisis

   1. Warren Buffett said the situation of banking is very similar to what has always been in banking, the fear is ‘contagious.’ He also said in recent months four regional banks in the US have faced a crisis with three of them being taken over by institutions with the help of authorities. Buffet said the U.S banking system had become overly complicated and that he was not surprised that the banks had failed.  He blamed mismanagement and skewed incentives. Buffet went on to say the situation would have been catastrophic if the government didn’t act.  

5. The US dollar, cash is king

   1. Warren Buffett said cash is king and he believes cash continues to be king.  He also said anyone who believes cash is trash ought to look at the Federal Reserve balance sheet. ‘I see no other option for any other currency to be the reserve currency.’

The meeting of Buffett and Munger provided valuable insights into the current state of the economy and wisdom that is worth paying attention to.

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