Every year, thousands of investors flock to Omaha, while countless others tune in globally, to witness Berkshire Hathaway’s chairman, Warren Buffett, address shareholders at the company’s annual meeting. This year’s session was no different, with Buffett sharing his invaluable insights on both the financial intricacies of Berkshire’s extensive portfolio and the essentials of leading a fulfilling life.
The entire session is well worth watching, listening to, or reading. However, to save time, here are two standout pieces of advice Warren Buffett offered.
On smart investing: Never worried about missing something you didn’t understand
When asked about one of the most critical decisions any investor faces—when to buy or sell an investment—Buffett’s response illuminated his investment philosophy.
He explained that he and his longtime partner, Charlie Munger, make decisions swiftly, but only after years of contemplating the factors that would enable them to act decisively when the right opportunity arises.
Warren Buffett cited his significant investment in Apple as an example. He didn’t invest until he fully comprehended consumer behavior, a conclusion he reached after managing various consumer businesses, both successful and otherwise.
After years of accumulating knowledge on a particular subject, Buffett said, “there is something that comes along and ticks a whole bunch of observations that you’ve made and knowledge you have, and then crystallizes your thinking into action, big action in the case of Apple.”
The takeaway for investors: Buffett’s investments are never based on impulses or fleeting trends. He only invested in Apple after recognizing the iPhone as “maybe the greatest product of all time.”
Warren Buffett emphasized that he and Munger never fret about missed opportunities in areas they don’t fully understand. “Charlie and I missed a lot of things, we never worried about missing something that we didn’t understand,” he shared.
On a successful life: Write your own obituary
Buffett is often asked for his thoughts on living a meaningful life. This year, one straightforward question stood out: “What advice would you like to share today that you believe everyone needs to hear?”
Buffett echoed guidance from his right-hand man, Charlie Munger: Think about how you would like your obituary to read, and begin building a life that will get you there.
“I would like to really sort of use Charlie’s advice of thinking how you like your obituary to read, and then start selecting the educational past, the social pass, whatever. ” he said.
During this year’s meeting, Buffett responded to a question about what he would do if he had one more day with Munger.
“In effect, I did have one more day. I mean, it wasn’t a full day or anything, but we always lived in a way that we were happy with what we were doing every day,” he said. While they enjoyed playing golf and tennis together, their real joy came from working side by side—a partnership so fulfilling that one more day or one less wouldn’t change its value.
For that reason, Warren Buffett urged his shareholders to go out and find a Munger of their own.
“What you should probably ask yourself is, who do you feel you’d want to start spending the last day of your life with, and then figure out a way to start meeting them tomorrow, and meet them as often as you can,” Buffett said.
Source: here
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