What Warren Buffett *JUST* Did.

puppet blames the massive stimulus

during the pandemic as a key reason that

we are seeing inflation and now and i

think this is absolutely obvious he says

look when you print loads of money money

is going to be worth

less than separate from worthless but

worth less okay that being said uh

buffett had a great things to say about

jay powell he said in his book jay

powell is a hero i don't think a lot of

people in the stock market right now

would agree that jay powell is a hero

but to some degree

it's important to remember that j-pal

kind of stopped a lot of the liquidity

printing that was happening uh in in uh

you know probably around the summer of

2020 but it's it's congress that just

kept going and more and more stimulus uh

so the the monetary side of a stimulus

like for example the main street lending

program or some of the other bailout

programs that they were really under

used by the fed uh the fed was actually

surprised about it they're like oh wow

apparently even using these programs it

was it was more like i think they only

bought like 80 billion in bonds or

something like that corporate bonds or

you know if that it was just sort of

like the sentiment that oh yeah the

fed's gonna come bail us out but it was

really congress that's like

anyway

munger also talked about risks he's

willing to take on investing in chinese

stocks and i thought this was

interesting because personally i'm like

i ain't not going near the chinese

stocks because chinese consumers like

hell no we save money we not spend

he says uh the reason that i invested in

china

is i get so much better companies at

much lower prices and i'm willing to

take a little bit more risk to get into

better companies with lower prices other

people might reach the opposite

conclusion and everybody is worried

about china now uh or more worried about

china now than they were worried about

four year 40 sorry

more than

50 years ago okay they're more worried

today than they were 50 years ago and

see that's really interesting because

uh really what what what he's saying is

hey like yeah we realize there are a lot

of risks investing in china but you know

it's creating this wonderful

you know by the dip opportunity

essentially in chinese markets now i

personally don't like the idea of buying

adrs because you have the de-listing

risk from the sec

but hey if you had a way to get direct

access to chinese stocks it's not a

terrible argument that you know sure

short term maybe they're china's in

recession we're getting misleading data

right but maybe it's an opportunity to

buy the dip so uh very very interesting

uh buffett says that he looks at

berkshire as a painting and it's

ultimate uh and it's really an unlimited

painting in size that he's got this ever

expanding canvas kind of like the uh

universe that he gets to paint wherever

he wants i

that was kind of interesting uh and uh

also somewhat inspiring anyway buffett

said berkshire has been increasing at

stake in activision uh this is a uh uh

merger with arbitrage bet

that uh microsoft remember microsoft is

buying activision blizzard some folks

rumor that the reason microsoft is

buying activision is in part to get the

ceo out of activision and try to like

clean house a little bit i think that

happens a lot at companies like

microsoft doesn't necessarily really

want activision but it's like okay well

we can like

basically buy a wedge deal because it's

mismanaged get rid of the management and

then profit kind of in my opinion like

what you're seeing with twitter

uh tbd anyway

uh so berkshire in uh q4 purchased one

billion dollars of activision they

suggest they had no prior knowledge of

microsoft plans to buy the company

and that may be true

but uh you know when you read between

the lines there there could be prior

knowledge that somebody was gonna buy

activision no prior knowledge it was

gonna be microsoft but i knew somebody

was gonna

well if it was anybody but warren

buffett people would be all up in that

yin yang trying to figure out

about insider training anyway

in uh in january microsoft obviously

announced their intentions to my uh

activision for 95 bucks a share it

actually closed for 9 75 and 60 cents on

friday so who knows but then again the

market price is in the risk that these

deals won't actually happen right that's

the same reason why twitter is selling

for less than 54.20

buffett says they own about nine and a

half percent of activision uh let's see

what else he has uh going back a little

bit to inflation he mentioned that

inflation swindles the bond investor who

keeps their cash uh and the person uh

who keeps their cash under a mattress

and the poor folks it pretty much

swindles everyone that inflation is

really really bad and we've kind of seen

that dialogue change with uh

jerome powell as well you know initially

it was inflation's transitory then it's

like well it's still kind of transitory

but it's less transitory it's just

lasting longer and now it's like oh gosh

we gotta deal with inflation

uh

charlie monger had a nice little

uh slam on robin hood he called it an

example of a good idea that has gone

grossly overdone munger said that hidden

kickbacks of that business model are

quite frankly quote disgusting and he

says that uh robin hood is quote

unraveling and that bot is getting

justice

i mean this is like such a

horrible slam on on poor vlad uh which

vlad's kind of gone dark you know i'm

like hey yo vlad when we gonna do

another interview

i think the world wants to hear from you

now a lot of people when i say that

they're like oh kevin why would you

interview him i don't know i kind of

like interviewing controversial people

because i think it's very interesting i

just like i wonder what it must be like

being vlad right now

uh anyway so uh

at the beginning of the berkshire

meeting uh there was a talk uh there was

talk about that if something is not a

productive asset it doesn't produce

anything uh then uh then buffett won't

buy it and this is when he really took

the opportunity to slam cryptocurrencies

uh he talked about whether it goes up or

down in the next year or five years or

ten years he has no idea but one thing

he knows for sure is that it doesn't

produce anything and uh and he wouldn't

even buy all the bitcoin in the world if

it was 25

uh okay so uh and let's see here he also

goes on to say i don't think we've ever

made a decision where either one of us

uh has either said or been thinking we

should buy or sell based on what the

market is going to do or for that matter

and what the economy is going to do we

don't know and this was also really

inspiring because it's like there's

there's so much

to look at and it's just like oh my gosh

it's like it puts you in a like a dizzy

and so uh it's this is actually one of

the reasons i've gone so heavy on just

buying tesla because i'm like boy oh boy

it is this i read a report the other day

that uh uh and i've got a few other

companies as well but i read a report

the other day that this has been the

hardest market to time

in 50 years

and so like even if you time some parts

right like boy oh boy like what's around

the next corner is just insane uh so

anyway uh so for me i'm just like all

right well where's where's the next

opportunity i guess to buy my three

faves you know

so uh anyway uh charlie monger had some

uh words uh about uh the uh you know

these calls about removing buffett as

chairperson berkshire because buffett's

old blah blah blah and he said it's like

odysseus would come back from winning

the battle of troy uh and so forth and

some guy would say i don't like the way

you were holding your spear when you won

the battle

like in other words talking about like

how ridiculous it is you know buffett's

helping win the game and

[Music]

people calling for his removal are just

obscene uh buffett uh talked about his

uh struggle of finding good businesses

to invest in

and uh and uh he's he's uh you know

they're absolutely searching for deals

but they have to be sizable deals he

says uh we'll pay any price climb any

hills to find businesses but we actually

prefer when they fall into our lap

kind of uh i kind of think that's great

it reiterates this idea of like having

cash on the side of being ready being

prepared to be able to make acquisitions

rather than being all in and being on

margin which is just a complete disaster

uh buffet uh you know kind of goes back

to his confidence on the fed a little

bit talked about short-term volatility

that's fueled by gambling mentality uh

this is something that they do their

best to absolutely avoid

and uh they also bought the dip quite a

bit in uh in in q1

uh big stake in ocean dental petroleum

uh chevron uh they increased their

stakes and and they bought

multiple other stocks

uh

and uh really they're buying these as

opposed to buying treasuries which makes

sense because i think treasuries are

just getting reamed

so uh anyway uh today uh he talked about

the fact that berkshire will likely

always be cash rich because he thinks

that they are actually better than the

banks in extending credit lines to

companies in need and really what you do

in that case is you're like sure we'll

give you a credit line in return for

some equity some cheap equity

uh

and uh and then of course

from the start of 1965 to the end of

2021 uh uh well end of 2021 worth noting

i mean things have well all the

berkshire has been holding up quite well

it's actually been doing very well so

anyway but anyway from 65 to the end of

2021 the per share market value of

berkshire hathaway had an annual

compounded return of 20.1

uh that's nearly double the s p's return

of 10.5 including dividends really

incredible

so this gives you a little bit of an

update on uh what went down with warren

buffett and berkshire hathaway this

weekend