Every value investor thinks about Warren Buffett
And they want to know what he is doing at this time
And in the recent times, the company of which Warren Buffett is the CEO
The name of which is Berkshire Hathaway
It had it annual general meeting
Which told us the amount of cash the company had
Where that company had invested
And what are the stocks they sold
And all the investors in the world
They paid a lot of attention to the annual general meeting
And when the market is so volatile how Warren Buffett is reacting
What is he thinking
And what are the stocks he bought and sold
And apart from this, the speech he gave in the annual general meeting of Berkshire Hathaway
From that, an intelligent investor, an Indian investor
What do we get to learn?
I, Jagdeep Singh, welcome you to the Groww channel
Today we are going to talk about the speech given by Warren Buffett in the annual general meeting of Berkshire Hathaway
And we will talk about the key takeaways
And we will talk about, as an investor
What can we learn from him
How should we plan our investment
And how in the coming days by learning from him
How you can make good returns in the longer horizon
First we will talk about what Warren Buffett spoke about in a lot of detail
If I tell you a fact
Warren Buffett has a 9-11% stake
In many airlines companies
In US airlines companies like
Delta airlines
Apart from this, American airlines
Southwest Airlines and United airlines
So these were the airlines companies of the US amidst which
Warren Buffett had a 9-11% stake
And he was very bullish on the airlines sector
Because if we go back a little in time
There was a big boom in the airlines sector
If we only consider India's scenario
Even in small cities, airlines has begun
Airports were opened there
And the connectivity of the airport and airlines, improved on a large scale
Because of which even Warren Buffett was very bullish in this sector
And he had many shares in this industry
So in this annual general meeting he said
All the shares of the airlines sector that he had
He sold all of them
He sold all of the airlines stocks
Now you must want to know whether he sold these airlines stocks in a profit or a loss
So Warren Buffett, whose name all value investors take first
Whenever we talk about successful investors
He said in his filing, that he sold all these stocks at a loss
And he booked a huge loss
So what do you get to learn from this?
So the biggest learning that you get from here is
If at any stage you find out
That any sector, might not be able to perform well in the coming time
Which you have researched about, according to that
You should exit from that at the right time
You should not get too linked when it comes to your investments
You should not think that you have suffered a loss
So you shouldn't sell the company
Because if I talk about investors, what do they think?
They think that if they have bought somewhere
They saw conviction somewhere, a year or 6 months ago
They never want to sell those companies
If that company goes down
We will buy them more
We average it out
So the philosophy to average it out
The trick works many times
But it doesn't work as well in many scenarios
Because at this time when the airlines sector was going through tough times because of Covid
At this time, when their stocks came down
Warren Buffett could average them out as well
But he said that he sold all the shares of those companies
And booked a loss
From this, us investors get to learnt that
If in any stock, in any particular industry
You think that the performance is not going to be that good
And you should exit from there
So you should wait there to turn your loss into a profit
As soon as you think that it is not going to perform well
You should exit from there at the right time
So the best exit from any particular stock
From any particular company
It is not necessary that it will be a profit
The best exit can be loss as well
How you minimise your loss
How you evaluate your risk from time to time
The sector that you invested in by keeping some risk in mind
If the risk of that changes
And your risk is different
At that time it is very important for you to exit from that sector at the right time
Let us talk about the second learning which we get from Warren Buffett
From this Berkshire Hathaway speech
He told us about the best investment strategy for any investor
Now you must be thinking that you were looking for the answer ot this question for a long time
We all want to know what the best investment strategy is
So that we can make good returns
And many times it also happens that
To make your best investment startegy
You go to many advisors
You pay them money
You give them some fees and even then you face a loss
So the best investment strategy for any naive investors
That doesn't invest very actively, it is investing in the index
So Warren Bufett says that if any investor believes in the growth story of any investor
As Warren Buffett has always said
America has always grown
Even if I look at the past 100 years record
There, if you are an Indian investor and you believe in the growth story of India
If you think that India will grow in the coming time
There can be small setbacks
Because there are many situations that no one can control
But there is always recovery in the equity market
That can be after 6 months
It can be after 1 year or 2 years
So Warren Buffett says here that if you want to bet for the long term
You believe a lot in a country's growth story
And you don't want to give a lot of money to investors
Give it as fees and even then face a loss
Better than that is to invest in the index
Now how can you invest in the index
So if you invest in the index, if I take India's scenario
So if you invest in an ETF that tracks the Nifty 50
Or you invest in an index fund that tracks the Nifty 50
You get the same returns which you get from Nifty 50
So in the Nifty 50, there are those stocks that are market leaders across sector
Which are large cap companies
And if the economy goes up almost every economy will have a benefit
So if there is a boom in the economy, the index has a benefit
Without thinking if you invest in the index, then in the longer horizon
Your chances to make losses becomes lesser
Your chances to make profit increases
And here Warren Buffett said another important thing
Whoever gives money to investors
If you put even that money in the index
And if you invest for the longer horizon 7-10 years
Here your chances to make returns increase a lot
Because if you go to the advisor
There if you invest very actively
Many times it happens that your risk is different
And the risk judged by the investor is different
Here the chances for a mismatch increase a lot
Because of which your chances to make losses increase as well
So here if you listen to Warren Buffett, if you don't want to invest actively
You actively don't want to choose a company, because there are many companies
Because if I talk about one sector, there can be 10,20 or ever 50 companies
For you to choose a good company there can be very difficult
Because of which Warren Buffett says investing in the index is the best investment strategy
Now let us talk about the amount bought by Warren Buffett in the recent quarter
Now you must want to know the amount for which Warren Buffett bought stocks
In the recent quarters
When everyone was very fearful
Because people say that there is a very famous quote
You should be greedy when others are fearful
So if we talk about the buying made by Warren Buffett in the recent quarter
That was only of 1.8 billion dollars
There if we talk about net selling
He sold 6.8 billion dollar worth of stocks of the airlines sector
After this if I talk about cash reserves
At this time Warren Buffett has a cash reserve of 137 billion
When someone asked him, despite having such an amount in cash reserves, why didn't you buy stocks
He said that there are many such risks
Think of which he has kept this cash
the need of which he can have at any time
So what do Indian and intelligent investors get to learn from here
When the market goes down, all of ys
All retail investors think that we will buy one stock
Or another stock
And all the money we have, we put in the stock market
But here from Warren Buffett we get a very important learning
The emergency fund you have
there willbe many risks in your life
There are many goals for which you have kept your money
You will never touch that money
Even if the market is undervalued
Even if the market is giving you good opportunities
But the most important is your risk
Unless your risk is covered
Until you don't have an emergency fund in place
And it doesn't have enough money to mitigate your risks
you shouldn't put all your money in the equity market
Because here he said that he has cash reserves
But can the situation get worse than it is now
If it does happen, how will he mitigate his risks then
There if we talk about retail investor
Why do we make such mistakes
Whenever we get money, we invest it all
And we don't think about our risks
So many times the market gives you a good opportunity to invest
It gives you undervalued stocks and at a discount
But before investing there
It is very important for your emergency fund to be in place
The amount of money needed for your risk mitigation
That should be kept aside
And after that the buffer amount
You have to use it when the opportunity comes
And even there you have to plan
That is the situation worsens
Do you have enough money in that case
The stock you are getting at 50 which was orginally 100
Tomorrow if you get it at 25
do you have enough money to take advantage of that opportunity
So if the world's biggest investor Warren Buffett thinks that
Maybe all of us retail investors also should pay attention to these things
So this video was from Warren Buffett's speech
What he said in the annual general meeting of Berkshire Hathaway
Which us investoers get a lot to learn
Which I told you about one by one
You should accept your mistake, if you invested in the wrong place
or if it was in a good place
Because of the current scenario it has become wrong
Exiting at the right time is very important
Secondly I told you that the best investment strategy
If you don't go to the investment advisor and invest it in the index
The chances to make money in the longer horizon increases
And third and very important
Emergency fund is very important for you
It is important to mitigate your risk
And why it is important for you to not put in all your money in the stock market
So with this learning I hope that you invest well in the coming time
You will make good returns
and with good returns, you will become a good investor
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