Buffett And Munger: The Best Way To Learn American History

From the 2006 Berkshire Hathaway annual meeting: Warren Buffett and Charlie Munger explain why they’re very enthusiastic about Berkshire’s purchase of Israeli toolmaker ISCAR. They also discuss rising real estate prices, warn against speculative commodity bubbles, and tell investors not to let the markets “instruct” them.

Warren Buffett

Buffett And Munger: The Best Way To Learn American History

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Q2 hedge fund letters, conference, scoops etc

Transcript

I'm Warren, he's Charlie. There's one thing I should probably. Clear up first because I know it's puzzling you. In the movie. He always gets the girl. Now.

That's hard to figure out isn't it. But I've. But. I finally understand what the.

What's happening. It's something called the Anna Nicole Smith rule. That's. When choosing between two old rich guys pick the older one at. If we get the spotlight up there on Andy Hayward Andy does that cartoon for us. Every year he travels around he gets the voices in there. Andy where are you. He comes up with the ideas. Andy is the, runs Siddiq entertainment. Deke is the one I've told you about in the past that. Produced Liberty's Kids which I think is probably. The best way not only for youngsters to learn American history but for people. My age as well. I mean it's a terrific series of of the young kids a couple of young ones. In the time of the American Revolution. I watched several of those episodes and I'd forgotten a lot of American history since. I was in school. That's just a really it's a wonderful series appeared on PBS over time. If you're looking to learn American history or have your children or grandchildren you. You couldn't do better in the months ahead. He's working on The Secret Millionaires Club but it's going to be a program. That's designed to teach young people some of the very basic lessons of. About money. How to avoid getting into trouble with it how to how to use it effectively and what your attitude should be toward it. So we're looking forward to getting that out early next year. I'll guarantee you that it will be a a terrific program for. Four teaching children and your grandchildren. Something about the subject of money. I'd like to have a special. Introduction. For the man that first. Taught Charlie and me. Something about the value of franchises. And the advisability of buying great businesses instead of cheap businesses. Prior to the purchase of See's Candy in 1972 I had tended to look. Primarily at financial measures in buying businesses and buying things that were cheap in relation to book value and we always tried to get a lot of tangible assets in relation to our money but we found out that the intangible assets if properly nourished and properly identified.

You can make a whole lot more money with than buying a lot of tangible.

Been 70 too early in 72. Charlie and I went to seize candy which had been in the hands of the C's family for for many decades. And we bought it. And of course Charlie and I didn't know a thing about making candy we are pretty good at eating it and. We needed someone to run the place. We met a young fellow there. It was clear to both of us that. That he was the ideal person to run See's Candy. And in just a few minutes we we made a deal with him that lasted a lifetime and if. Chuck Huggins and his wife Donna would stand up I'd love to have you get my real well-deserved round of applause as you notice my daughter Susie produced that move Asia does every year. She works hard on it and. We don't pay her anything. Although she does remind me occasionally when I'm out of board shines that she worked very hard on the movie. I literally know of no directors of any large publicly owned companies. That have. Universally as. Significant a percentage of their net worth. In the company. Purchased in the open market.

As that group do you. Charlie. None. None. OK. Clint.

That may be all you hear from him VoG. So. Kind of. Savor it a little bit. We released our. Earnings yesterday after the close did we withdraw those earnings Mark. Oh no no. They are. They shot up another six hours allotted or so and. As you can see we don't pay any attention to realize.




About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and three kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own 2.5 grams of Gold