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FINANCE BERKSHIRE HATHAWAY FINAiUS: The Berkshire Empire: Hidden Truth of Buffett and Munger's Success \| 2023 Documentary PLAY YOUTUBE VIDEO Original article: https://www.youtube.com/watch?v=wfwxe0lLaDs Peter Burgess COMMENTARY I got interested in Buffett and the saga of Berkshire Hathaway a very long time ago ... in the late 1960s when I first migrated to the United States. My interest in 'investing' was fairly high at that time. I had run a small 'invesatment club' in London earlier in the decade called The First Cambridge Invesztment Club (FCIC) and it had had quite good success over about three years. I was also involved with the administration of another much bigger investment club in London that eventually was reorganised into a very early ... if not the first ... mutual fund. Though I had an general interest in the field of investment, my dominant interest was much more to do with the 'management' of the enterprise itself rather than merely the management of the finances of the enterprise. The Buffett / Munger collaboration over a very long time is very instructive. I am not a fan of finance being the driver of decision making for the economy, I make an exception for Berkeshire Hathaway. The logic for this is that compared to most investors they are Peter Burgess
The Berkshire Empire: Hidden Truth of Buffett and Munger's Success \| 2023 Documentary FINAiUS Apr 13, 2023 466K subscribers ... 559,714 views ... 11K likes #FundManager #investinart Skip the waitlist and invest in blue-chip art for the very first time with 𝐌𝐚𝐬𝐭𝐞𝐫𝐰𝐨𝐫𝐤𝐬: https://www.masterworks.art/finaius Buckle up for a wild ride as we uncover the stories of financial legends Warren Buffett and Charlie Munger and their financial empire, Berkshire Hathaway. You'll be stunned to learn that what they preach may not always match what they practice! This is part two to our Untold History of Warren Buffett. 𝐒𝐮𝐩𝐩𝐨𝐫𝐭 𝐦𝐞 𝐨𝐧 𝐏𝐚𝐭𝐫𝐞𝐨𝐧 𝐭𝐨 𝐫𝐞𝐥𝐞𝐚𝐬𝐞 𝐟𝐚𝐬𝐭𝐞𝐫 😇 - / finaius 𝐁𝐨𝐨𝐤 𝐌𝐞𝐧𝐭𝐢𝐨𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐞 𝐟𝐢𝐥𝐦 - 📘The Snowball (https://amzn.to/3Ifz2RR) 𝕺𝖙𝖍𝖊𝖗 𝕾𝖔𝖚𝖗𝖈𝖊𝖘 - - Becoming Buffett HBO Documentary • Charlie Munger's advice on investing ... 🎶𝐌𝐮𝐬𝐢𝐜 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐯𝐢𝐝𝐞𝐨 - https://open.spotify.com/artist/5dzPV... Instagram: falcon.xu LinkedIn: linkedin.com/in/rocky-xu-0487498b/ #FundManager #investinart 𝐒𝐞𝐞 𝐢𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭 𝐌𝐚𝐬𝐭𝐞𝐫𝐰𝐨𝐫𝐤𝐬 𝐝𝐢𝐬𝐜𝐥𝐨𝐬𝐮𝐫𝐞𝐬: https://www.masterworks.com/about/dis... Transcript 00:19:58,.440 employees lose their jobs. 19:56 And more importantly, Buffett's investment in Salomon Brothers remains intact. So, the Treasury modified its' order, and 20:04 in effect, of course, it was quite an endorsement, it was huge. Buffett has turned a pretty nasty 20:10 situation to his favor. He was able to use the opportunity to reinforce the image that he is the conscience of 20:17 American finance. With the salvation of Salomon Brothers, Buffett's business soared, making him the 20:23 richest man in America. And with that momentum, he buys the rest of Geico, as insurance companies continue 20:30 to be his biggest cash cows. After all, Buffett's #1 rule is to 20:36 never lose money, and the $700 million dollar bet is a quarter of Berkshire Hathaway's entire portfolio at the time. 20:43 But we'll see that Buffett learns a valuable lesson - one still serving him well in 2023, as we're grappled with mass 20:50 layoffs, inflation, and now, bank runs. Unsurprisingly Warren Buffett maintains 20:56 a cautious approach, holding a sizable $130 billion dollars of cash, almost 20% 21:02 of his total assets. Now from Buffett, to retail investors, all 21:07 seek to safeguard and expand their wealth, leading top financial institutions like Goldman Sachs to 21:13 invest billions in real assets, and recommend them to their key clients. In 21:18 fact, in 2022, amid the stock market's worst year since 2008, one real asset's prices 21:23 surged by 29% on average according to Barons. That asset? Museum quality multi-million 21:31 dollar fine art. That's why since 2021, I have been investing with a company called Masterworks that offers 21:37 investment in art from legends like Picasso, and Banksy. While previously only 21:43 accessible to high net worth individuals, Masterworks manages everything from acquisitions, to sale, and they've already 21:50 exited 11 paintings, all of them for a profit. In fact, their last three exits 21:55 returned net profits of 10%, 13%, and 35%, directly to investors like us. With the contemporary arts low 22:02 correlation to stocks, and attractive historical appreciation, I'm happy that I've been invested with Masterworks, and 22:07 with my link in the description, you can skip the waitlist and join me. 22:14 [Plane taking off] Fueled by technological innovation and globalization, the mid-1990's in America 22:21 were a time of a great economic growth. For the newly crowned America's richest 22:28 man, it's not necessarily good news. An overheated stock market means fewer 22:34 investment opportunities. But Buffett ultimately succumbed to the Berkshire Hathaway Stock 22:40 pressure and temptation to invest. He acquires a giant insurance company called General Re, for $22 billion dollars. 22:49 He paid for it using Berkshire Hathaway stock. It's something Buffett has never done before. 22:55 In my experience, most deals where equity is offered as the primary source of consideration, 23:02 seller accepts that because they believe that there's significant upside to that equity. Acquirer insists on that because 23:09 they think the marketplace is probably overvaluing the equity. 23:15 Buying something with stocks could be interpreted that Warren Buffett thought Berkshire Hathaway was too inflated. 23:22 But buying the company during the height of the dot com bubble is going to be a mistake that Buffett comes to regret. 23:30 [Music] Stocks ended mixed, as Coca-Cola joined CocaCola Stock 23:36 the list of companies warning that profits would not meet forecasts. Earnings growth expectations have just 23:42 been too high, said Robert Natali, a portfolio manager at Bear Stern's Asset Management Inc. 23:49 Admist the turmoil of a scandal that sent Coca-Cola shares plummeting, Warren Buffett's 23:54 recently acquired company, General Re, also faces a disaster of its' own. 24:01 In 1999, the company was defrauded out of a staggering $275 million dollars, 24:06 jeopardizing Buffett's investment, and threatening to undermine his reputation as one of the world's most successful 24:12 investors. As the bull market charges ahead, producing new millionaires at a 24:19 breakneck pace, Warren Buffett's legendary investment record appears increasingly ordinary. 24:27 To make matters worse. Buffett's personal life takes a dark turn. In early 2000, Buffett finds a tumor in 24:35 his colon, and is hospitalized for surgery. While Buffett recovers from the surgery, 24:41 the stock market takes a nosedive, and the dot com bubble finally bursts. Black Friday 24:50 It's after what they are already calling Black Friday. It was the worst single day point loss ever 24:56 for both exchanges. After the dot com bubble, Buffett's reputation revives. He's now ready to re-enter the 25:03 game, and start scouting for companies selling at a discount. 25:09 But there's a problem. Less than two years after the dot com bubble, another major disaster hits the American 25:15 finance industry. 9/11 was particularly bad for Warren Buffett, because guess what? He owned a 25:22 lot of insurance companies that had to pay billions in damages. 25:28 Good evening everyone, the Dow ends its worst week ever, 25:33 with another triple digit loss. The NASDAQ fell 47 today. It was another volatile day with huge price swings for the Blue Chips, as investors pondered the 25:40 implications of President Bush's address to the nation last night. The 9/11 attacks shook the economy, but Buffett is 25:47 determined to make a comeback. He sees an opportunity to buy companies at a steep 25:52 discount, including the McLane company, and Business Wire. As Buffett's investment portfolio begins 25:59 to bounce back, by 2005, Buffett is back on the top of the business world again. 26:05 It's a status he's achieved through years of business acquisitions and brand building, 26:10 and soon his name and his brand will be used to save Wall Street, yet again, from 26:16 an impending financial catastrophe. The Plateau 26:25 The most expensive stock in the United States passed an unusual plateau yesterday, as the price for a Class A 26:32 share of Berkshire Hathaway Inc. briefly surpassed $100,000 dollars. In 2006, Warren Buffett's investment in 26:39 Gen Re finally becomes profitable, bouncing back from earlier struggles. 26:45 But Buffett senses that the market is overheated, and struggles to find new profitable investments. 26:51 Terrific game that way because you can sit there and wait, and wait, and wait for the right pitch, and, and there are not 26:58 many things in life where you get that option. And that's exactly what you're doing now. That's, that's what I do now. I've done it before. In anticipation of 27:06 this annual meeting, you have to say to the stockholders, I've been waiting for the right pitch, and I haven't seen it. 27:12 That's right, that's right, and, and some pitch somebody else can hit out of the park, you know, but I don't think I can, you know, that's my, that's, uh, my problem but 27:20 I'm not gonna, you know, I'm not gonna think I can hit a pitch I can't. But what he doesn't know, is that a 27:25 cataclysmic economic event is just two years away. Poised to unleash financial destruction 27:32 on a scale that is unheard of. 27:41 Everyone else is watching and they're seeing these big negative numbers and their confidence gets affected. Right now we're sitting down 875 points. We've now broken down 10,000. The Dow Jones industrial average dropped more 27:48 than 900 points. As the housing crisis deepens, Wall Street's 27:53 once impregnable fortress begins to crumble. One of the industries most legendary 28:00 firms suddenly finds itself on the precipice of ruin. Desperate to restore confidence in the 28:07 market and fend off financial disaster, Goldman Sachs turns to Warren Buffett. 28:13 [Music] 28:19 You know, from our standpoint with, we've, we've had a lot of cash, we now are seeing things that, you know, give us a chance to use that cash sensibly, and, and this was a, a $5 billion dollar opportunity to I think 28:25 deploy cash sensibly. While billing out Goldman Sachs, Buffett 28:30 makes sure he gets a favorable deal from the bank that guarantees him a huge profit once the firm survives the crash. 28:38 He employs the same strategy with General Electric, investing $3 billion dollars in preferred stock that offers 28:44 unlimited upside and no downside. 2008 was one of the best periods of time 28:50 for Warren Buffett. He invested in a lot of troubled companies, and even in distressed debts. Berkshire Hathaway was 28:56 so invested, that he ran out of cash for the first time ever. 29:04 While the housing crisis of 2008 becomes a thing of the past, the American economy 29:09 has seen a remarkable resurgence, with the market experiencing one of the longest periods of prosperity. 29:16 Shares of Berkshire Hathaway have soared to incredible heights, 29:23 but now Buffett has a new problem. Warren Buffett has talked in the past or 29:28 spoken about in the past, um, the difficulties of Berkshire Hathaway becoming so large. He says that it's 29:35 becoming increasingly difficult to find businesses that he can purchase or invest in that will move the needle in a 29:42 dramatic fashion for Berkshire. In 2016, his attention was drawn to an unexpected company - Apple - a long-standing 29:50 avoided investment for Buffett. Warren Buffett's Berkshire Hathaway has taken in a $1 29:56 billion dollar stake in Apple. According to a regulatory filing report released today, Berkshire held almost 10 million 30:02 shares of Apple in its first quarter. The company is possibly betting that the tech giant will rebound after a slowdown 30:08 in iPhone sales. Despite his large investments in behemoth companies like Apple, Berkshire 30:14 Hathaway's stock price remains stagnant. If you look at Berkshire Hathaway's stock price for the past 15 years until 30:20 2022, it behaved very similarly to the S&P 500. For the past five years, Buffett 30:28 has been content to sit on the side lines, and observe the market's unprecedented 30:33 boom, driven by retail investors and cryptocurrencies. But after years of going through market 30:40 cycles, Buffett and Munger are convinced that the time will come for the market to fall. 30:45 [Music] Well we start off by bidding adieu to 2022 with a big good Market Cycles 30:52 riddance. Major averages all officially closing out the year with their worst losses since the financial crisis. The 30:57 NASDAQ down for four straight quarters for the first time since the dot com bust. 31:03 As the year 2022 draws to a close, the financial world is on the brink of a 31:08 reckoning. The market has faltered, and the S&P 500 has plunged by a staggering 19% 31:15 from the previous year. At the same time, the once booming 31:20 cryptocurrency market is cut in half, leaving investors reeling, and unsure of 31:25 what the future holds. While the rest of the market struggles 31:31 to stay profitable, Buffett and Munger see the opportunity they have been waiting for. [Music] 31:37 Over the course of eight intense months, Buffett and Munger make bold moves, investing in major companies such as 31:43 Activision Blizzard and Celanese. One should not just listen to what 31:48 Warren Buffett says, but actually study what he does. I think what Warren Buffett does better than a lot of other 31:53 investors is that he put in a lot of effort into building a brand, and that 31:59 brand helped him make outsized returns that other investors simply just can't do. He has such a status, that he can move 32:05 the market with his words alone. With his unparalleled ability to steer 32:11 the course of markets, Warren Buffett lives up to his name. The oracle of Omaha. 32:21 [Music] 32:28 [Music] -->

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