Every year at Berkshire Hathaway's (NYSE: BRK.A), (NYSE: BRK.B)) Annual Meeting, CEO and Chairman Warren Buffett and Vice Chairman Charlie Munger spend hours investing questions and answering life in general. Although many of the questions asked are relevant to Berkshire's business, there are always a few takeaways for investors.
For tens of thousands of shareholders, it's an event not to be missed, and people travel from all over the world to Omaha Buffett and Munger's prospects.
Below are four of them that occurred.
Are Treasury Bonds a "Terrible Investment"?
Buffett's argument against long-term Treasury bonds is that the US Federal Reserve is expecting inflation of 2% and US government bonds yielding slightly over 3%, which would fall to around 2.5% after tax. Individual investors therefore only receive a return of 0.5% after inflation and taxes.
Do not Worry About a Trade War with China
The prospect of a trade war and political backlash between global leaders added some volatility to the markets in recent months. Prior to the AGM, US officials were in China to negotiate trade between the two countries.
Asked about the current situation between the US and China, Buffett said that world trade is a "win-win situation." He acknowledged that one had problems when "one or the other side might be a bit too." wants to win a lot and then a certain tension ". Later, when asked about the impact of steel tariffs on Berkshire's business, Buffett said, "I do not think any of the countries will delve into something that will impact and continue any real trade war."
Buffett and Munger Are Not Fans of Cryptocurrencies
"Cryptocurrencies will have a bad end," Buffett said. And Vice Chairman Charlie Munger has roughly summarized his negative views on several occasions.
Buffett and Mungers opinions about Bitcoin are really no big surprise. Bitcoin is often referred to as Digital Gold, and Buffett is not a fan of gold either. Over the course of thousands of years, the price of gold has been only a few tenths of a percent, "Buffett said.
Buffett has typically avoided unproductive assets over the course of his investing career, preferring to invest productive assets such as a bond that earns an acceptable income, or one Share Owning a Business
Berkshire Healthcare Venture Should Soon Have a CEO
Stocks of health insurers, pharmacy usage managers and some pharmaceutical companies hit as JPMorgan (JPM), Amazon (AMZN) and Berkshire Hathaway announced They would team up to improve their employees' health care, especially with the goal of improving employee satisfaction and reducing costs.
Up a few times, and Buffett said the three companies were there, the right CEO to find for the job, and they should be able to announce who the "too long" is.
TD Ameritrade® Commentary for educational purposes only. Member SIPC
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