Discover and read the best of Twitter Threads about #BerkshireHathaway

Most recents (8)


Here’s Buffett at 32, when he earned a million per year - or $8.8M per year in today’s dollars.

In this thread, we celebrate #BerkshireHathaway AGM weekend by looking closer at how he did it. We finish with a link to the 152 pages of gold: Buffett Partnership letters.

Many hedge fund managers expense so-called “2/20”, meaning that whatever happens with the investments, they get 2% of the assets plus 20% of any profits.

Even though they’d underperform the market, such system would incentivize them for the effort.


Here’s the outcome for the investors in this typical 2/20 model. See how 5% returns before fees leave investors with only 2% returns after fees (40% of the total).

But Buffett was different.
Read 12 tweets
Read Warren Buffett’s annual letter to Berkshire Hathaway shareholders @CNBC

#StockMarket #WarrenBuffett #Investing #Invest #Stocks…
#WarrenBuffett #BerkshireHathaway #AnnualLetter

Summary by @CNBC

Buffett says 'never bet against America' in letter noting company's U.S. assets…
Read 4 tweets
BREAKING: Coal is becoming uninsurable but major laggards are still offering cover and insurers have so far not moved away from oil and gas, the @InsOurFuture’s new scorecard report shows. A quick 🧵 on the good, the bad and the ugly!
👍Since 2017, 23 major insurers have stopped insuring coal projects. Premiums for coal companies have gone up by up to 40% this year, and “businesses with exposure to coal are being punished as many insurers withdraw their support”, an insurance broker warns.
👍By now, at least 65 insurers with combined assets of $12 trillion – ca. 43% of all insurance assets – have divested from coal in some way, and divestment is “slowly squeezing the entire coal industry like an anaconda”, an analyst warns.
Read 14 tweets
Why are developers describing tiny Polkadot as the ($400 billion) Amazon Web Service of blockchain?

Scan 30 bullets about the worst kept secret in the next-generation blockchain.

• Discover why Warren Buffet’s #BerkshireHathaway owns more #Polkadot than you.

• The truth about why Bitcoin coders jumped ship to rack-up crazy hours coding Polkadot. Ever heard of the “sharp knife” theory?

• Why never compare Ethereum to Polkadot (even if #Ethereum leads the $9 billion #DeFi boom)
• The world’s most powerful blockchain scaling strategy: is this the code to finally unshackle 4 billion internet users from privacy abusing Google?

• The often overlooked feature that can see #Polkadot 10X before the next scandal bursts into the headlines about crypto forks!
Read 41 tweets
#charliemunger #BerkshireHathaway

Why #WarrenBuffett missed the transformation from Hard assets to Soft assets , Why the legend never understood the transition to Software and it’s future and he underestimated the Internet to a very vast extent
It was 1997 and Warren was offered an opportunity to buy Microsoft stock and he said he believes MS story is pretty good in the short term , but he doesn’t see a great future in another 2 decades.
MS was trading at $16-18 at that times and has split thrice since then...
Berkshire purchased GEICO in 1995-96. It came to Warren’s attention that GEICO was paying $10 to search engine Google for every mouse click on GEICO ad
The cost of this service provided by Google was NIL
Warren couldn’t read the thesis behind this kind of income Google generated
Read 8 tweets
#dividends #yield

With interest rates depressed and likely to remain so for years, stocks with ample and secure dividends could benefit as investors search for yield.
One approach is to consider companies whose dividend yields nicely exceed their bond yields
This can be a good way to find high-quality stocks because low bond yields are often a sign of financial strength & dividend stability
The stock of any company whose safe dividend yield is materially higher than its own 10 year bond yield may have a compelling risk/reward profile
The approach doesn’t predict that a stock will outperform, but it has been very effective at identifying stocks with limited risk
Let’s take an example Johnson & Johnson (JNJ), whose dividend yield of 2.7% is more than double the about 1% on its 10-year debt.
Read 9 tweets
.@WarrenBuffet on
Why he's not buying stocks in size: sensitivity to tail events and the '08 reminder "we don't see all the problems the first day."
On whether others should buy now: Only if you expect to hold for a long time and are financially and psychologically ready to do so
@warrenbuffet .@WarrenBuffett repeated what Charlie Munger told the @WSJ earlier on why #BerkshireHathaway didn't repeat the 2008-09 experience of lending to stressed companies:
"We haven't seen anything attractive," especially after the #Fed quickly opened the #markets for companies to borrow
@warrenbuffet @WarrenBuffett @WSJ In continuing to express relative caution overall, @WarrenBuffett stresses that, when it comes to the impact of the #CoronaVirus shock;

- "You can't rule out any possibility" and

- #BerkshireHathaway wants to be prepared for many possible scenerios.

#markets #economy #COVID19
Read 4 tweets
1/ The concept of a Holding Company in CPG to be the @ProcterGamble for the 21st Century is the worst kept secret idea over the past 24 months.

Kind of a lot of people are trying to build this.
2/ I personally get pitched on it 5x-10x a month. And those are only the emails/calls I respond to. Here is why people are excited about it and the challenges they are discovering to date.

TLDR: I’m bullish on the concept but lots of kinks to be worked out.
3/ The basic idea being kicked around is to acquire (or start) many different consumer brands under one Holding Company. Likely then have some shared “back office” (**murky alert**). Shared marketing/finance/sales as an example.
Read 25 tweets

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