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Michael
+ Your AuthorsArchive @michaeltefula investing in the future with @DowningVentures | team @diversityvc | my latest book available in link below | views my own May. 02, 2020 1 min read

Berkshire Hathaway annual shareholders meeting live streaming now over at Yahoo Finance  https://finance.yahoo.com/brklivestream/ 

0/ A few interesting bits from the 4.5hr ish session...👇🏾

1/ Overall long-term bet on USA continues to hold promise & though range of possible futures of impact of coronavirus is still wide, this range is narrowing as we learn more about the virus & its impact. That said, Buffett is cautious, taking long view, and holding onto cash atm

2/ Berkshire sold off entire stakes in airlines (Southwest, United, Delta, AA) & at a great loss. They're bearish on airlines given massive drop in demand which could persist with permanent changes in consumer behaviour + bailout borrowings that will depress future earnings

3/ Buffett doesn’t recommend if now is good/bad time to buy stocks. No one knows what market will do. Individual investors better off getting index funds & hold for 10-20 years! Meanwhile Berkshire isn’t yet seeing any attractive buying opportunities either

4/ On related note if interest rates are going to be -ve for a long time, you better own some equity. But option value of money is stronger than ever. Berkshire isn’t seeing big attractive investment opportunities atm so they’d rather hold onto their $130bn+ cash pile for now...

5/ Further note on the option value of having money right now: Berkshire's actions suggest they believe that the option value of holding onto their cash atm > existing investment opportunities (including buying back Berkshire shares)🤔

6/ in sum Berkshire views are:
(1) USA fundamentals over long term still hold promise
(2) Some industries will see structural long-term decline in demand (less air travel for example)
(3) Option value of cash is a critical factor when looking at new investments in this climate


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