Zhongxin Finance, May 1st (Shi Rui) On April 30th, local time, the annual "Spring Festival Gala of the Investment World"-Warren Buffett's shareholders meeting was held in Omaha. This is also after the outbreak of the new crown epidemic. Warren Buffett and his 98-year-old partner Charlie Munger met with investors offline again after two years.
File photo: Warren Buffett.
Image source: CFP Vision China
At the opening of the shareholders' meeting, Buffett said that "it feels great to be face-to-face (held a shareholders' meeting) again in three years."
He also "brought goods" the products of See's Candy Co., which was acquired many years ago, and said that he brought 11 tons of See's Candy to shareholders. Munger tried it on the spot.
In the subsequent investor questions, Buffett and Munger responded to high-profile topics such as high inflation in the United States, the US stock market, Bitcoin, and whether Buffett will step down as chairman. Still sharp, "golden sentences" frequently burst out.
How inflation will develop is difficult to predict
In the first quarter of this year, the real GDP of the United States fell by 1.4% year-on-year, but the inflation was still high. , hit a record high for 40 years and a new record, respectively.
In this regard, Buffett said that the previous large-scale stimulus policies of the US government "unavoidably brought inflation."
In addition to "deceiving" stock investors, he argues,
inflation also hits bond investors and robs those who hide their money under mattresses.
It robbed almost everyone.
"We're in a very strange time right now, with a lot of money going to individuals no matter how, but because of supply chain disruptions, etc., a lot of people don't have as many places as they used to. can be consumed.”
"In the end the future inflation will develop to what stage? Seek truth from facts, we can not make any predictions."
Buffett emphasized that the best investment against inflation is to develop yourself, "
your money may be affected by inflation, your talents will not
".
US stocks are like a casino
After the outbreak of the new crown epidemic, as the Federal Reserve continued to release excess liquidity, US stocks continued to rise for two years, and a large amount of hot money poured into the stock market. After the collapse in April, the valuation has fallen by more than 20% from the high point.
Buffett believes that
many large American companies seem to have become "chips on the gambling table"
. "The stock market is like a casino, where everyone gambles. This phenomenon has been especially obvious in the past two years, and it has also been driven by Wall Street."
Buffett criticized, "The way Wall Street makes money is speculation. They like to watch people trade, but the market is dominated by this situation. Some large-scale transactions, investors decide to close in three or two days, this is not investment. Kehir wouldn't do that."
Munger believes that high-frequency algorithmic trading during the epidemic has further boosted market sentiment. He then criticized the Internet brokerage platform Robinhood, known as the "retail base camp", for "let all people join in for short-term gambling speculation", while Now that Robinhood is unraveling, isn't it obvious that something like this will happen?
Cash Is Oxygen, Bitcoin Is 'Stupid, Evil'
For Berkshire's operating secrets, Buffett stressed the importance of cash.
"From all the historical records, we know that if we don't have cash on hand today, we can't operate tomorrow, or we can't play. Cash is like our oxygen (important) and we keep it at all times. A fair amount of cash."
And Buffett and Munger once again insisted on their disapproval of Bitcoin at this year's shareholders meeting.
Munger even stated that he has worked hard to avoid several things in his life: stupid, evil, and making me look worse than everyone else, and Bitcoin does all three at the same time.
He believes that Bitcoin is likely to become worthless while weakening the Federal Reserve and the international monetary system.
Buffett also said that he would not buy Bitcoin, "
Even if someone owns all the Bitcoin in the world and wants to sell it to me at a very low price, I will say I don't,
because Bitcoin is not a productive one. Assets, it’s just a gambling game, a hype game that a lot of people come to play.”
It's the most ridiculous thing to have Buffett step down as chairman
On April 19, Berkshire's shareholder CalPERS, the largest state public pension fund in the United States, disclosed that it intends to vote for Berkshire's shareholder proposal to replace Warren Buffett as chairman.
Munger said it was the most ridiculous thing he had ever heard.
After a question-and-answer session with investors, Berkshire's formal shareholder meeting voted down the proposal.
(Finish)