The Wisdom of Warren Buffett Continues

As many of you know, I listen attentively to every word from the Oracle of Omaha. Most recently, at age 94, he held court at the AGM of Berkshire Hathaway, his last as CEO of the company he built. I made notes during the six hours of coverage and am sharing some takeaways that I think every citizen of this country should digest, along with wisdom that is universal the world over.

Warren Buffett emphasized the importance of global prosperity and cooperation. He criticized the notion of countries crowing about their successes while others feel envious. Buffett stated that it’s a mistake for a few countries to boast about their achievements while the rest of the world struggles. A more prosperous world benefits everyone, including the United States. Fostering global trade and prosperity leads to a safer and more prosperous future for all. He advised to be careful not to start lecturing to the world; humility goes a long way.

His advice to the youth of today is that success comes with a good work ethic and a willingness to contribute in whatever way you can. He encourages them to read a lot and be curious.

When asked about the role of DOGE and the challenges posed by governmental bureaucracy, he emphasized that bureaucracies tend to grow within corporations and governments, often becoming inefficient over time. He encouraged global cooperation, emphasizing that trade should not be used as a weapon. He warned against rising protectionism and tariffs, advocating for balanced global trade to ensure mutual prosperity.

In an interview with his younger sister before the meeting, she explained that she had to relearn the basics of investing under his tutelage and abandon the common belief that a company must pay a dividend for income. Buffet’s approach: if you want some income, then sell some shares. In the long run, that is more tax-efficient and accomplishes the same goal; while giving you control over the timing and amount of your income. Warren also commented that he is wired differently from most investors in that he does not get fearful during market declines.

A common theme at every AGM that I have listened to is Buffet’s belief that we should consider ourselves fortunate to have been born in or to live in America, suggesting that being born in a prosperous country provides us all with significant opportunities. Buffett reiterated his preference for investing in productive assets over speculative ones, emphasizing long-term value creation.

Finally, Buffett expressed concern about the U.S. federal deficit, which had reached 7% of GDP. He emphasized that such a high deficit is unsustainable in the long term. Buffett warned that continuing to run large deficits could lead to significant economic problems.

And on a lighter note, he recommended to everyone that a great movie to watch on Amazon Prime is Becoming Katharine Graham.

Nick Hoffman