“Warren Buffett and Charlie Munger Share Investment Advice and Insights at Annual Meeting”

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Berkshire Hathaway’s annual shareholder meeting on Saturday featured dozens of questions covering topics such as investment strategy, artificial intelligence and policy for the two legendary investors at the helm of the conglomerate: Chairman Warren Buffett and Vice Chairman Charlie Munger.

CNBC quoted part of Buffett and Munger’s conversation, which was reviewed by Al Arabiya.net.

Lots of people do “stupid things”

Munger said value investors should be prepared for lower returns as competition intensifies. But Buffett said there are still opportunities given that many people have a short-term view and often do stupid things in a panic.

“What gives you opportunities is other people doing stupid things… In the 58 years we’ve been running Berkshire, there’s been a huge increase in the number of people doing stupid things,” Buffett added.

the focus

Munger said it is “crazy” to teach small investors that they have to diversify when investing in common stocks.

“One of the preposterous things that is taught in modern university education is that wide diversification is absolutely mandatory in investing in common stocks… This is a crazy idea. It is not easy to have a large number of good opportunities that can be easily identified. And if it is You only have 3, I’d rather have the best of them than the worst of them.”

He said that investors should know themselves and their strengths. “We’re not very intelligent, but we kind of know where the edge of our intelligence lies… That’s a very important part of practical intelligence…. If you know the limit of your ability well, you should ignore most of our experts’ notions of what I call ‘removing flaws’ from portfolios.” .

Write down your goal and live up to it

Buffett gave advice on how to live life and spend and invest harmlessly.

And he advised the need to make sure not to make any mistakes that take you out of the game or bring you closer to the exit. You shouldn’t spend your nights worrying about investing, “And assuming you have any money to invest at all….you should get in the habit of spending a little less than you earn, and you can spend a little more than you earn….but you’ll have debts You’ll probably never get out of debt.” The only exception to this is the mortgage on your home.

Not smarter, but wiser

Buffett said that investors don’t need to be experts in the technical aspects of a business if they can understand the fundamentals and are committed to learning.

He added, “We’re interested in owning a great business forever….we learn a lot on the way….we learn all the time how consumers behave. I certainly wouldn’t be able to learn the technicalities of business, and it would be nice if I knew, but it’s not necessary.” ….we have a job at Apple…but I don’t understand phones at all, but I do understand consumer behavior….we are learning all the time, from all of our work….we don’t get smarter with time, however. We got a little wiser.

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