2020 – Berkshire Annual Meeting

Virtual meeting due to COVID
Greg Able – 20 year veteran at BRK (from energy side)
137B in Cash
This past weekend Berkshire Hathaways had their annual earnings conference (virtually) which I actually had on my personal calendar (eyes rolling) and hearing Warren Buffet is one of my highlights of the year.
The first hour wasn’t an earnings call it was like me listening to my Grandfather on the history of America from a very humble well rounded man. He covered the trials and tribulations we have gone through. He was also direct about hard side of American history with Women’s rights and Slavery and that we can and will do better, and we have a long way to go. If you can, I recommend a listen.
Warren did not disappoint:
Quote (coming from 4th richest man in the world) – “Own it”
“It turned out I was wrong,” the Oracle of Omaha said, adding that he’d made an “understandable mistake” given the unforeseen downturn in the industry.
America will prevail
“I don’t know where [stocks] are going to go in the next day, month, year but I hope that really everybody will buy stocks with the idea that they’re buying partnerships in business and not chips that they can move up or down”
-Warren Buffett
A few highlights
$15M for 25% of the US – Louisiana purchase
We are a young country = 231 years old
Wealth of country in 1789 = $1B
Wealth of country in 2020 = $100T
5,000 to 1 gains in 231 years
1863 – Gettysburg moment of decision at 73 years of age, if we will endure and survive
1861 – 16 Million males – we lost 6% during civil war
DJA
  • 9/3/29 – 140 years of age – DJA = 381.17
  • 11/13/29 –                           DJA = 198.69 (decline of 48%)
  • 8/29/30                                DJA = 245 – Warrens birth
  • 7/8/32                                  DJA = 41.22 (83% decline in 2 years)
  • 2 years                                 4,000 banks failed during this time
  • 1/1/34                                  FDIC started (does not cost the tax payer a dime) – a mutual insurance company of the banks backed by the federal government
  • 1/04/51                                DJA 240.85 – after 20 years a buyer on Warren’s birth broke even.
  • 1/1/54                                 DJA  280 to 400 (within the year) – A finance committee was created with Prescot Bush to dive into the market.
  • 5/2/20.                                DJA = 24,000 ($100 for every $1 when Warren finished college)
The Great Depression lasted a long time in peoples minds (1929 was a symbol in peoples minds for a very long time)
“The Great Depression lasted a very long time but it lasted a lot longer in the minds of people than it did in its effects,” Warren Buffett says. “1929 became a symbol… it was like saying 1776 or 1492… Everybody knew exactly what you were talking about.” #YFBuffett
Keynesian economics –  born when the war started
American miracle continues = we will endure and persevere
[]In Q1 – Sold 6.5B in Airlines, and is concerned about the debt they are taking on, very capital intensive. The world changed for airlines, and I wish them well, but they are going to be hurt significantly
The great crash (book)