3 Lessons From Warren Buffett’s NEW Annual Letter



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His New Annual Letter: https://www.berkshirehathaway.com/letters/2022ltr.pdf

Warren Buffett is someone you must study if you are interested in business and investing. Every year, Buffett writes a letter to shareholders that is packed with valuable information and wisdom. These are must-read letters. Buffett just released a new letter to complete Berkshire’s 2022 Fiscal year. Today, I’m going to share 3 lessons from Warren Buffett’s new annual letter. Specifically one of these lessons, our dividend-focused investors will love. Buffett calls this The Secret Sauce.

My Recent Warren Buffett Videos:
Why Warren Buffett Loves Dividend Stocks: https://youtu.be/Vf7pgqkxdws
Why Warren Buffett Just Sold $4 Billion in TSMC Stock: https://youtu.be/PGDWNYbw-oY
Disney Stock Announces Dividends For 2023: https://youtu.be/Z3IN3ogiwL8
The END of Intel Stock?: https://youtu.be/xjsYsyjyigg

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Timestamps:
Overview: 0:00
Lesson 1 (Mistakes & Creative Destruction): 1:37
Lesson 2 (The Secret Sauce): 3:16
Lesson 3 (Share Buybacks): 6:01
Read More: 8:48

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27 thoughts on “3 Lessons From Warren Buffett’s NEW Annual Letter”

  1. Buffet, Munger, and Berkshire have been and continue to provide wisdom for the new, old…all investors. I do get disappointed with these so called new modern investors, that call these guys old fossils and their investing style has passed. Buffet and Munger know business fundamentals and don't follow hype.

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  2. I'm a huge WB fan. The man knows how to make money. He loves to invest in solid companies and healthy dividends are just the cherry on top for him. But if WB becomes a controlling shareholder, he guts or deletes the dividend. OXY is a good example of this. He was asked in an interview why and if ever Berkshire would give a dividend and he said no. His belief is, he and his cohorts know how to use a company's money to reinvest, and retail/wall street shareholders would just squander it. He
    will take a company's divs all day long, but will not give/restrict, if he has a controlling stake. I believe, to paraphrase, he said divs are free money for him, but are a foolish business decision. He will take KO, APPL and others in a heartbeat, but if gains enough for control or ownership he again as stated, will gut/restrict the div. Read up on WB's lifeline he threw to QXY. Man is smart like a fox and by following some of his portfolio, he has made me a lot of money. 😎

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  3. This is financial advice and I never give financial advice: DONT LEAVE DURING THE BEAR. If you don’t want to invest…learn. If you don’t want to learn…build. If you don’t want to build observe. DO SOMETHING…other than leave. There is so much opportunity here. Take advantage!

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  4. Warren Buffett's reasoning on buybacks is self-serving and specious. If a company wants to make more money, sell more product. Buying back shares is almost insider trading as the corp knows 90% of what's going on where the buyer in the open market knows much much less. Management is competing with would be owners. They can even rig events so the stock price falls so they can make buybacks.

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  5. The biggest problem with Share Buybacks is that companies often waste shareholder money on them. Just look at a chart of how much money has been spent annually on Share Buybacks, and put a chart of the S&P500 next to it. You'll see that Buybacks tend to be at their highest when the market is most overvalued, and at their lowest after the market has crashed and stocks are cheap. In other words we talk all the time about how terrible the average investor is, but we never acknowledge that businesses are also terrible investors when it comes to stock buybacks.

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  6. My advice to new investors: Buy good companies stocks and hold them as long as they are good companies. Just do this and ignore the forecasts and market views which are at best entertaining but completely useless. I’ve only ever saved($510,000), never invested but want to start…

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  7. I see two problems with buybacks – 1) Opportunity Cost – Instead of investing in r&d / improving product/sales, the companies do buybacks. 2) Bail Outs – Many firms have done buy-backs instead of saving money from rainy days. These funds have been bailed out using public (tax-payer) money. This creates a moral hazard. Personally, I am in favor of sensible scrutiny of buy-backs and even dividends.

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  8. Big ups and big love for the awesome daily content. Because inflation devalues your savings, it compels everyone to be an investor. Meaning you need to preoccupy yourself or offload your time/energy to the study of investment opportunities both of which are very costly. Thanks to Linda Wilburn for showing me the appropriate way to get into bitcoin investing and trading with her trade signal and investing guidelines. Investing and trading are more than just having TA skills. There is a big component of discipline and emotional maturity, that one has to work on! Time in the market vs. timing the market. If you keep that mentality as an investor, you will stay calm during the storm! Within some months I was making a lot more money and have continued on that same path with Linda Wilburn.

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