Tess's avatar
$2.5m follower assets
Buffett Reveals the BEST Asset to Combat Inflation
One of the most highly anticipated shareholder meetings is none other than Berkshire Hathaway's AGM.

This year, Warren Buffett and Charlie Munger sat down to discuss many hot topics brooding investors' minds.

Here are 6 lessons I've gained:

(1) Activision Blizzard Purchase
In Q4 2021, Berkshire bought Activision Blizzard, a video game maker company, starting at a $1 billion stake.

Then in the next quarter, Microsoft made a bid to purchase Activision at $95 per share.

Since then, it has become a different kind of security.

This is known as a "workout" or arbitrage, which is what Buffett used to do previously in the early days of managing Berkshire.


(2) Bitcoin
If someone were to offer you all the Bitcoin in the world for $25, what will you do?

For Buffett, he would NOT accept it. Because he doesn't know what to do with it.

Bitcoin is not an income-producing asset. Unlike owning farmlands, which yields crops that you can sell for profit, bitcoin does not generate anything.

Munger added, “In my life, I try and avoid things that are stupid and evil and make me look bad in comparison to somebody else – and bitcoin does all three."


(3) Investing in China is Worth the Extra Risk
While acknowledging the risks of investing in China, Munger thinks that it's worth it.

He believes that he can get "much better companies at much lower prices".

And we can tell, based on his position in $BABA in The Daily Journal Corporation.


(4) Predicting Inflation
The truth is nobody knows what the inflation rate or interest rate will be, even Buffett.

What we do know for sure, is that not all companies will be impacted the same.

Companies that require less capital will fare better than those that require a lot.

(5) Best Way to Deal with Inflation

Buffet said the best way to deal with inflation, is to "Be exceptionally good at something".

If you are the best in whatever you do, that is the best inflation hedge.

Nobody can take away your talent.


(6) What we can learn from Buffett's Investing Journey

Buffett started out investing in cigar butts and studying stock price charts every day.

But all of these changed when he read The Intelligent Investor, written by Benjamin Graham.

What can we learn from his investing journey?

Watch the YouTube video below to find out:

Joey Hirendernath's avatar
Great video Tess, these meetings are soo long, really helpful that you managed to boil it down into a shorter summary :)

Also, welcome to Commonstock!
Tess's avatar
@joeyhirendernath Glad you found it helpful. Thanks Joey!
Conor Mac's avatar
Great first post Tess :)

Author

Related