In this week’s show Brian and Bo analyze Warren Buffett’s annual Letter to Shareholders. It does not matter the market the conditions, he always has a simplistic view and understanding of investing and can relay that information in layman’s terms. Basically, Buffett has still got it. Brian and Bo spend the podcast looking into the highlights and giving you their thoughts on Warren’s words. Many of the things that are addressed in the letter are processes that we have always practiced and shared with you guys. Here are the key takeaways:
- Keep it simple.
- Have a plan and stick with it.
- Do not let outside sources effect your game plan (See Above).
- Stay away from investments you do not understand.
- Remember your goals.
Warren went on to touch on a few of his ventures and why he still feels there is value outside of a portfolio of index funds. Being investment guys we threw this in as well:
- Insurance – He touches on Geico’s Float amount and how it effects their balance sheet.
- Regulated Capital – Why he feels Utilities and Freight work for him.
- Manufacturing Service and Retail Outfits – Warren touches this topic but keeps things pretty generic do to competition.
- Finance and Financial Products – He keeps this section short and, rightfully so because, he states it is their smallest sector.
- Investments – He touches some of the investments that he has made and why they have been successful.
The guys had a great time recording this podcast even though Brian felt that he was reading too much. We find ourselves looking forward to Warren’s letter every year and hope that you continue to look forward to hearing from us every two weeks.