What are the key takeaways from Warren Buffett's 2020 annual Berkshire Hathaway shareholder meeting? Find out the oracle of Omaha's take on the economy amid the COVID-19 pandemic.
Hello, welcome to Arista Advice. Hope you're well in light of the COVID-19 pandemic.
Over the weekend, an annual event occurs on the first Saturday in May every year. I look forward to it because it's an opportunity to read and hear from Warren Buffett. The legend long-term investor of the US economy. He has a net worth of over 75 billion dollars and has been pretty successful in keeping his emotions at bay and buying good companies at the right time.
Here's a picture of him and I many years ago when I was invited by my father-in-law to go to an RC Willey Home Furnishings grand opening. After I asked him many questions and talked to him. He said "Your questions qualify you to receive a picture of you and I holding my wallet, and he gave me the permission to tell everybody "Paul, tell everybody that I turn my money, my investments, and my wallet over to you."
Let me share with you five takeaways from the 2020 annual Berkshire Hathaway shareholder meeting.
Number one: This is an extraordinary young country. We have accomplished many things, and it's a miraculous country that we have to live in. He then said and I repeat "Never bet against America."
Number two: We faced tougher problems. The American miracle has always prevailed. The Civil War during which time 6% of the prime workforce males ages 18-60 died, a mortality rate that exceeds the current pandemic.
Number three: He always placed Paul Volcker on a pedestal in terms of the Fed, the United States Fed chairman, and he says that now on that pedestal is Fed chairman Jay Powell. Number four: "We are a rich, rich, rich country. Nobody should be left behind", and fifth and final: In response to several questions from shareholders Buffett advised that the average investor, he recommends that they should buy broad market index funds that hold the S&P 500. It's very unusual for a money manager to beat the market and that the money is in selling people on the slim hope of trying to beat the market.
One other takeaway is Warren Buffett was very optimistic about the US economy and the future of the US economy. He said it's going to take a few years to really know what transpired, but may we stay optimistic and may we stay positive like Warren Buffett the most successful individual investor that the US market has ever seen.
Hope you're well. Have a great day.