As most of you are aware, Warren Buffet is known for his investing skills. He is acknowledged as the World’s Best Investor. You can get loads of information from the net regarding the guru of investment. He owns the “Berkshire Hathaway”, which a billion dollar company. He shares his secrets to the whole world on the day of Annual Meeting. His Annual meetings are generally attended by more than 50,000 people. It is always a pleasure to read the annual statements from his site. I would urge you to have a look at it.
Here are some of the quotes of his in this year’s annual meeting:
1. On market timing: “We don’t try to pick bottoms. To sit around and not do something sensible because you think there might be something better doesn’t make sense. Picking bottoms is not our game. Pricing is our game. And that’s not so difficult. Picking bottoms is, I think, impossible.”
2. On keeping Berkshire as one entity: “We’ve got this ability in terms of moving money around into various opportunities without tax consequences. So if See’s Candies is a wonderful business, which it is and generates capital that can’t be used in that business – we can use it toward another business…”
3. On Berkshire’s credit rating: “We’re still a AAA in my mind and in Standard & Poor’s mind.”
4. On contracts: “We don’t want relationships that are based on contracts. I can’t really think of a formal contract that we have. We have understandings about bonus arrangements with various managers. We have different arrangements because all the businesses are different. We don’t try to hold people by contracts and it wouldn’t work. We basically don’t like engaging in them.”
5. On government action to save economy: “Overall I commend the actions that were taken. To expect perfection from people working 20 hour days and getting hit by new and sometimes bad information – when you’re getting punched from all sides – you’re not gonna do everything perfectly. I think overall they did a very good job…”