Published on Jul 1, 2016

Wise Answers from Warren Buffett and Charlie Munger at the Berkshire Hathaway Shareholders Meeting (April 2016)

-Business Advice and Wisdom For Life from Mr. Buffett and Mr. Munger

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Warren Buffett & Charlie Munger - 2016 Berkshire Hathaway Shareholder Meeting Highlights

0:00
why did this happen young well it's one of the problems of prosperity the ideal
0:07
business is one that takes no capital but yet grows and and there are a few
0:12
businesses like that and we own some but we are not able
0:17
we'd love to find one that we could buy for 10 or 20 or 30 billion dollars that
0:21
was not capital intensive and we made but it's harder and that does that does
0:32
hurt us in terms of compounding earnings growth because obviously if you have a
0:36
business that grows and gives you a lot of money every year and doesn't take it
0:42
it isn't required in its growth ah you know you get a double barrel of effect
0:48
from the earnings growth that occurs internally without the use of capital
0:52
and then you get the capital of producers to go and buy other businesses
0:54
and sees candy was a good example of that ideas that back when the newspaper
0:59
business was good
1:00
our bottle of newspaper for example was a good example of that the buffalo news
1:05
paper was making at one time 40 million dollars here and have no capital
1:09
requirement so we could take that whole 40 million dollars and going to go buy

1:13
something else with it but ah capital increasing capital acts as an anchor on
1:22
returns in many ways and one of the ways is that it it drives us into it just in
1:30
terms of availability and rises in the businesses that are much more
1:33
capital-intensive you just saw a slide for example in berkshire hathaway energy
1:39
where we just announced just in the last couple of weeks we announced the 3.6
1:44
billion dollar in investment coming up in in one generation and we pledged
1:53
overall they have 30 billion dollars and renewables anything that berkshire