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The Investor's Podcast (We Study Billionaires)  - The Investor’s Podcast Network

TIP521: Warren Buffett's Shareholder Letters

The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network

Stig Brodersen

Business, Education, Investing

4.63.6K Ratings

🗓️ 7 February 2023

⏱️ 59 minutes

🧾️ Download transcript

Summary

On today’s episode, Clay reviews Warren Buffett’s shareholder letters and shares his takeaways, and distills some of the biggest lessons he learned. If you asked a lot of value investors, they would tell you that reading Buffett’s letters is equivalent to an MBA on value investing and business. Buffett has a lot to teach us as investors as he has grown the value of Berkshire shares by over 3,600,000% since he took control of the business in 1965. IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 07:44 - What Berkshire’s “Big Four” businesses are. 13:16 - What Buffett looks for when investing in a business and what he looks for in a management team. 14:19 - Why Buffett loves share repurchases and why they give me further vindication that a stock is cheap. 18:28 - Why it pays to treat your colleagues and shareholders like partners. 24:49 - Why industries with constant change should be avoided by investors. 28:36 - How Buffett views cash and leverage in his capital allocation strategy. 49:28 - What Buffett looks for when selecting him and Charlie’s successors. Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members. The Essays of Warren Buffett by Lawrence Cunningham. Listen to Clay’s review of The Education of a Value Investor by Guy Spier, or watch the video. Tune into the recent We Study Billionaires’ episode covering The Dhandho Investor by Mohnish Pabrai, or watch the video. Learn more about our free social events in Omaha here. Follow Clay on Twitter. NEW TO THE SHOW? Check out our We Study Billionaires Starter Packs. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts.  SPONSORS Support our free podcast by supporting our sponsors: River Toyota Range Rover Fundrise AT&T The Bitcoin Way USPS American Express Onramp SimpleMining Public Vacasa Shopify Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0

You're listening to TI-P.

0:03.0

Hey everyone, welcome to the Investors Podcast.

0:06.0

I'm your host, Clay Fink.

0:08.0

On today's episode, I'm going to be talking about my biggest takeaways from reading Warren Buffett's shareholder letters.

0:15.0

If you asked a lot of value investors, they would probably tell you that reading Buffett's letters is equivalent to getting an MBA on investing in business.

0:24.0

Buffett graciously shared the investing in business practices he has used for decades to grow the market value for Berkshire Hathaway shares by 20.1% annually from 1965 through 2021,

0:36.0

which over that entire time period was a 3.6 million percent return relative to 30,000% for the S&P 500.

0:45.0

Not only is there so much to learn from Buffett with regards to investing, but there are many life lessons as well.

0:51.0

This reminds me of my previous episode I released talking about Guy Spears book, the education of a value investor.

0:58.0

Before we dive into the episode, I thought it would be a good opportunity to mention that

1:03.0

TI-P will be at the Berkshire Hathaway annual shareholder meeting this year on May 6, 2023.

1:10.0

We're hosting four free social events where you can meet Stig, Tray, and myself as well as socialize with the rest of the TI-P audience members.

1:18.0

I'm also doing a get together prior to the meeting in front of the Century Link Center for the TI-P members to meet and sit together at the annual meeting.

1:26.0

Our social events are already getting a ton of attention as many people have already registered and 150 people have joined our WhatsApp group chat.

1:34.0

For details on our events, how to register, how to join the chat, be sure to check out the itinerary and the show notes if you're interested.

1:42.0

For more details, you can also check out episode 500 where Stig and I discuss our events, the Berkshire meeting, and common questions asked by the audience members about the Berkshire weekend.

1:52.0

I am beyond excited for Berkshire weekend as I always have a fun time there connecting with other like-minded investors.

1:59.0

It's always one of the highlights of my year and it will be even better getting to hang out with other TI-P hosts as well as the audience members.

2:06.0

Can't wait to see all there.

2:08.0

Without further delay, let's dive right into today's episode covering Warren Buffett's shareholder letters.

2:15.0

You are listening to the Investors podcast where we study the financial markets and read the books that influence self-made billionaires the most.

2:26.0

We keep you informed and prepared for the unexpected.

...

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