May 9, 2023

Berkshire Hathaway's annual meeting was a highly anticipated event where Warren Buffett and Charlie Munger shared valuable insights. Here's a concise summary of the key points:

  1. Lower Earnings Ahead: Buffett cautioned that many of their businesses will report lower earnings this year, signalling the end of an exceptional period for the US economy. Munger advised value investors to adjust to a tougher environment.

  2. Apple's Importance: Buffett expressed his admiration for Apple, which represents nearly 40% of Berkshire's portfolio (as of 31 December 2022). He admitted to a previous mistake of selling shares and praised Apple's strong consumer position.

  3. Occidental Petroleum Affection: Berkshire holds a significant stake in Occidental Petroleum, worth $12.8 billion. Buffett clarified they love the shares but won't seek control, highlighting their favourable warrant positions.

  4. Banking Insights: Buffett discussed the banking sector, emphasizing the contagious nature of fear within it. He expressed caution about deposit stability and endorsed Bank of America as a reliable investment.

  5. Currency, Cash, and Japan: Buffett showed confidence in the US dollar as the reserve currency but warned against excessive actions eroding faith. He defended the value of cash and mentioned Berkshire's substantial presence in Japan.

For a more detailed summary, please see this article written by Livewire Markets Content Strategist, Kerry Sun.

If you would like to discuss further, please call any of the advisers here at Bennett & Co - Richard Bennett on 07 3876 8131, Tony Garnham on 07 3184 2520, or Michael Lynch on 0412 144 574.