My 8 key takeaways from Buffett's annual $BRK shareholder letter...
Including the best line and the best number...
1) “A Berkshire Number that May Surprise You”:
Berkshire owns the most American-based property, plant, and equipment of any US company: $154B
#2 is $T with $127B
2) Buffett’s “my bad”
The $11 billion write-down of his 2016 purchase of Precision Castparts.
As usual, he praised management even as he badmouths himself about overpaying: "No one misled me in any way – I was simply too optimistic about PCC’s normalized profit potential."
Bonus baskets:
$ARKG
A basket of the @chamath alphabet SPACS ( $SPCE, $OPEN, $IPOC, $IPOD, $IPOE, $IPOF)
iRobot ($IRBT) – Ceiling: So much optionality in home robotics + AI to boost growth. Floor: Premium brand, profitable, good balance sheet.
Upwork ($UPWK) and Fiverr ($FVRR) – Marketplaces that win as freelancing and the gig economy take off. Upwork has more sales now, but Fiverr has more recent growth.
81. (cont.) The digital equivalent today is turning off real-time news and Internet feeds and reading more thoughtful analysis.
82. Any of the most successful investors you can think of, no matter how different in style (Graham, Fisher, Buffett, Lynch, Davis, Simons, Soros, David Gardner, Klarman, Sequoia Capital, etc.), have a resilient framework that fits their mentality and stays stable for decades.
83. It's not the rewards you don't understand that'll burn you, but the risks you don't understand.
Here are the 100 things I’ve learned in investing.
I’ve updated this over the years to 1) Share 2) Reduce my own unforced errors 3) Reinforce the good habits, like #47.
(THREAD)
1. Most of this list is dedicated to insight on stock picking, but know this: It's darn hard to beat the market. 99% of people are best served steadily buying and holding low-cost index funds at the core of their portfolios -- and I may be understating that 99% figure.
2. Looking for a diversified, low-cost index-fund core? Vanguard is what I recommend to anyone who asks. Three flavors: 1) Stocks and bonds: Target date funds. 2) Entire world stock market: $VT. 3) Entire world stock market, split up between U.S. and foreign: $VTI + $VXUS.
August 30th is @WarrenBuffett’s 90th birthday. Each year, I celebrate the Babe Ruth of Investing's birthday by adding another reason we love our hero.
Here we go…
1. Intricate, occasionally contradictory complexity hides beneath the "Aw, shucks" folksy charm. As an @Forbes writer once put it, "Buffett is not a simple person, but he has simple tastes."
2. Many people talk about avoiding the madding crowd, but Buffett actually does it by living 1,250 miles away from Wall Street.
Here are the 100 things I’ve learned in investing.
I wrote the first version of this eight years ago to 1) share 2) reduce my own unforced errors 3) reinforce the good habits, like #47.
(THREAD)
1. Most of this list is dedicated to insight on stock picking, but know this: It's darn hard to beat the market. 99% of people are best served steadily buying and holding low-cost index funds at the core of their portfolios -- and I may be understating that 99% figure.
2. Looking for a diversified, low-cost index-fund core? Vanguard is what I recommend to anyone who asks. Three flavors: 1) Stocks and bonds: Target date funds. 2) Entire world stock market: $VT. 3) Entire world stock market, split up between U.S. and foreign: $VTI + $VXUS.